What is Equifax

What is Equifax? You hear and see that name everywhere. Are they friend or foe? Actually, they are neither. Let’s delve into the world of credit and investigate what is Equifax, really.




What is Equifax? It is a company that offers services to the credit industry. Equifax has several different products. The first offering that Equifax has is a credit reporting agency. As a credit reporting agency, Equifax delivers credit report on people to businesses and financial institutions. These companies pay a fee for the service. Services like these help companies make better decisions about whom they loan money to. Your report can be used by financial institutions like banks, employers, rental agents, insurance companies, law enforcement, government, private investigators, and collection agencies. In theory, anyone requesting a copy of your credit report from Equifax must have a valid reason to do so. In addition to providing the information to companies, you can also request a copy of your file from Equifax. They give you the opportunity to note inaccuracies and to request an investigation into items that may not belong to you or items that are not reported correctly. Out of all of the major credit reporting agencies, I have found that Equifax is least likely to make corrections as a result of an investigation.




OK, so Equifax is a credit reporting agency. Is that it or is there more to the question of what is Equifax. Yes, there is more. Equifax also offers other services. They have a credit monitoring service that you can subscribe to. For a monthly fee, they will monitor your credit report and inform you when there is a change. Usually services like this also have a monthly newsletter that they send out. This newsletter typically contains tips and strategies for improving your credit score and keeping your credit looking good. In North Carolina, several banks are now offering a type of this Equifax service as an option when you open a checking account. SunTrust bank is one who is doing this.




Does Equifax make the decision on your loans or credit cards? No, this is not what Equifax is. They do not make recommendations to creditors about your credit worthiness or ability to pay. It is “…just the facts, ma’am…” Usually this is the case, but like with anything else there can be errors. All Equifax does is collect information about how you make your loan payments. This information is collected from the companies you do business with, collection agencies, and Government Agencies (usually courthouse records). Not every lender subscribes to Equifax and some do not report their information to them. However, most do. The courthouse records that you will find are judgments against you; tax liens, judgments, and property seizures; bankruptcies, foreclosures, and repossessions. Other records such as lawsuits, family court issues (except failure to pay child support) and criminal court records are not included on an Equifax report.




Hopefully, we have answered your questions about Equifax. They are just one of several reporting agencies. You can request a report from them free once a year or if you were denied credit, employment or insurance within the last 60 days. Be sure to keep on top of this, and know what is in your credit file. Now you are in the know about what is Equifax.