Equifax Credit Bureau - A Quick History Lesson
Equifax credit bureau is one of the three major bureaus in the US, the others being TransUnion and Experian. Lets discuss who exactly they are, how they got started, how they make their money and the role they play in if you get approved or denied for new credit.
They are a consumer credit reporting agency. This means that they collect information on individuals and their credit behavior, which can then be used for a variety of reasons such as to establish a potential customers’ credit worthiness and the financial risk that they will be providing a potential creditor with. And most importantly your FICO or credit score.
Who is The Equifax Credit Bureau?
Equifax was established in 1899, making them the oldest of the three major bureaus. They were originally founded as the Retail Credit Company, the company expanded at a rapid rate and had become one of the nation’s largest credit bureaus by the 1960’s.
The name change to Equifax came about in 1975, which was also around the time that the company computerized their records and widened the range of personal information that they held. This lead to the Fair US Credit Reporting Act, which gave consumers additional rights regarding the information stored about them. And it entitles you to dispute credit marks on your report that you feel are in error or inaccurate.
Today Equifax employs over 7,000 workers in 14 countries around the world. Their headquarters are in Atlanta, Georgia and they have annual revenue of over $1.5 billion. Yes BILLION and that is just one of three bureaus. The profits they generate are 100% private business. In other words the government doesn't get a dime of this money - outside of taxes just like any other big business pays. In no way are the bureaus associated or connected to our government - instead they are regulated (forced to follow rules)
What Does the Equifax Credit Bureau Actually Do?
Their main source of income is your credit information or report to businesses and lenders. These reports detail a variety of information about you, including you personal information and you have managed your previous and current credit products, such as personal loans and credit cards. This is where any bad credit items in your financial history will be seen by the potential lender.
The businesses can then use these credit reports to determine whether or not they should approve or deny your credit application. For someone with a bad credit it is likely to present a huge risk to the business.
They also make money selling you the information they have collected about you. It is worth knowing that under the Fair Credit Reporting Act (FCRA) Equifax is required to provide every US citizen with a copy of their credit report once every 12 months. This can be obtained by calling 1-877-322-8228. You can then file and dispute Equifax credit report and have incorrect or false information removed.