![]() Educational credit scores have been shown to differ significantly from those that lenders use to make underwriting decisions. The Equifax credit score is an educational credit score. So each bureau might show a different balance on the same account, and that can impact your credit utilization and your credit score. TransUnion might have information about a late payment when Experian doesn’t.Īnother reason that scores might vary is that creditors don’t always report to each bureau at the same time. The results from FICO 5, 4, and 2 may vary because all creditors don’t necessarily report to all three bureaus. For instance, FICO 5 works with data from Equifax, while FICO 2 pulls in data from Experian and FICO 4 uses TransUnion’s database. You tend to see greater differences among scores when scoring models are applied to different databases. Credit scoring models have more similarities than differences, and if you apply all scoring models to the same set of data, your scores should be similar. The accuracy of any credit score depends on the completeness and correctness of the data being analyzed. How accurate is the Equifax credit score? Equifax currently offers a 30-day trial for $4.95 the normal cost is $19.95 per month. The package includes identity theft protection, insurance, annual access to a three-bureau VantageScore, and anytime access to a one-bureau VantageScore and Equifax credit reports. You can get an Equifax credit report any time if you enroll in the Equifax Complete Premier credit monitoring service. How does Equifax’s credit score work?Įquifax’s credit scoring model is developed and owned by Equifax. It was created to help consumers estimate their creditworthiness and general financial health. The Equifax credit score is not geared toward underwriting and lenders don’t use it. You can use data from any of the big credit bureaus to create an Equifax credit score – not just Equifax data. The Equifax credit score is not based on the FICO or VantageScore models. The Equifax credit score does not refer to a FICO or VantageScore number using Equifax data.Įquifax developed its own scoring model to help educate consumers. Here are some of the most common scores used by creditors to make lending decisions: What is the Equifax credit score?ĭon’t confuse any of the scores listed above with the Equifax credit score. Finally, there are industry-specific versions of scores – geared toward credit card issuers, for instance, or auto financing.Ī consumer can have dozens of credit scores because there are so many combinations of data sources and credit scoring models. There is also the VantageScore, a popular alternative created by all three credit bureaus working together. FICO comes in several versions that are still in use, including FICO 2, 4, 5, which mortgage lenders use, and FICO 8, 9, and 10, which are for general use. The most widely used credit scoring system is the FICO score created by the Fair Isaac Corporation. To get a credit score, a lender runs credit bureau data through a credit scoring model. However, a credit report is not a credit score. Each bureau compiles its data into credit reports. Equifax, TransUnion, and Experian all maintain extensive collections of consumer credit data. To get any credit score, a lender needs two things – a source of credit data and a credit scoring model. In 2021, Equifax logged a record-setting $4.9B in revenue. The company also markets its businesses credit reports, analytics, demographic data, credit fraud, identity theft prevention products, and software. The data comes from creditors, government entities, employers, and consumers themselves.Įquifax sells its credit reports to lenders, credit card issuers, insurers, consumers, healthcare providers, utilities, and employers. Screening and verification for employersĪs a credit bureau, Equifax collects enormous amounts of consumer data – including employment, public records, spending, borrowing, identifying information, and even fingerprints – to compile its reports.Credit reporting and monitoring services.In 1999, it expanded into consumer credit reporting, and today the company is one of three credit major bureaus in the United States (the others are Experian and TransUnion). Retail Credit Company became Equifax in 1975. ![]() Its business was mainly investigating consumers and creating reports for insurance companies and employers. What is Equifax?Įquifax was founded in 1899 by Cater and Guy Woolford under the name Retail Credit Company. Credit Sesame explains all you need to know about the Equifax credit score. ![]()
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