There are three major credit reporting bureaus in the United States. Equifax is one of these credit reporting bureaus and TransUnion and Experian are the other two. This article will take a look at what Equifax is, how it began, how it makes money and, most importantly, how it affects your credit score.
The reporting of consumer financial information in the form of a credit report is what Equifax is known for. Lenders obtain these credit reports in order to decide if they should or should not approve credit applications.
Having been established in’99, Equifax is the oldest of the three major credit reporting agencies. Originally founded as the Retail Credit Company, Equifax grew quickly and became one of the largest credit agencies in the country by the’60s.
In’75, Retail Credit Company became Equifax. At this time, Equifax computerized its records and expanded the information which it held on consumers. This expansion of information ultimately brought about the Fair Credit Reporting Act (FCRA) which allows consumers additional rights regarding the information which may be collected on them.
With offices in– countries and more than 7,000 employees, Equifax calls Atlanta, Georgia home. Additionally, Equifax brings in annual revenues of over $ 1.5 billion.
The sale of consumer credit reports to lenders is Equifax’s main source of income. Credit reports list a person’s financial history and credit worthiness. Identifying information, credit background, and payment history are items which are included on a credit report.
Lenders obtain these credit reports and use them to make a decision as to whether to approve or deny a credit application. People with good credit reports will likely be approved for credit, while those with bad credit reports will most likely be denied.
Another source of income for Equifax is the sale of credit reports to individual consumers. Consumers obtain copies of their credit reports so they may review them and make sure that their financial information is reported accurately. Also, identity theft is an increasing concern and obtaining and then reviewing your credit report should give you an idea as to whether you have become a victim of identity theft. To obtain a copy of your credit report you can contact Equifax or you can call (877) 322-8228. The three major credit reporting agencies are legally required to provide you with one copy of your credit report every twelve months, upon your request.