What Is Equifax? The Easy Guide For Beginners 

Equifax is one of the three major credit bureaus—all of which collect information on your financial habits and use that information to compile and sell credit reports. These reports are then used to calculate credit scores and help companies determine your creditworthiness—or how likely you are to repay your debts on time. 

With your Equifax credit report, you can find out what creditors or lenders may see when you apply for credit. This can not only help you to be more prepared when applying for credit and making financial decisions, but it can also help ensure there are no inaccuracies on your credit report which are decreasing your credit score.

What is Equifax?

Equifax refers to itself as “data collectors,” but like any credit bureau, it does a whole lot more than just that. It’s one of the three main credit bureaus in the U.S. and it offers a range of services to consumers, from data collection to helping individuals and businesses manage their credit.

In addition to credit reports, Equifax also provides a variety of other services as identity theft protection, credit monitoring, and fraud protection. It also offers credit score products, such as the VantageScore and the FICO score. These scores give customers a better idea of their credit and can help them find better deals on loans and other forms of financial services.

Equifax vs Experian vs TransUnion: What’s the Difference?

There are three main credit bureaus: Equifax, Experian®, and TransUnion®. They are also known as credit reporting agencies or consumer reporting agencies. The information collected by each bureau can differ because creditors and lenders might not report to all of them. This is why there can be differences in credit reports and credit scores across bureaus.

What’s in an Equifax credit report?

An Equifax credit report is a detailed summary of an individual’s credit history compiled by Equifax, one of the three major credit reporting agencies in the United States. It contains information on an individual’s credit accounts, payment history, credit utilization, public records such as bankruptcies and tax liens, and other factors that may impact their creditworthiness.

Here are the five components of an Equifax credit report:

1. Personal Information

This includes details such as your full name, address, date of birth, and Social Security number. It may also indicate previous addresses (including mailing and physical), maiden names, or any other names you have gone by.

2. Accounts

The Equifax credit report includes all of your credit-based account information, such as open accounts, closed accounts (including closed credit cards and loans that have been paid off), types of credit accounts (e.g., credit cards, installment loans, etc…), how long you have had credit, payment history, account balances, credit limits, and total loan amounts.

Here are the types of credit accounts Equifax credit reports may include:

• Open accounts
• Closed accounts (including those that have been paid off)
• Credit mix (e.g., revolving credit/credit cards, installment loans or mortgages)
• Credit history (how long you’ve used credit)
• Current credit card balances 
• Credit limits on credit cards and/or total loan amount (to calculate credit utilization ratio)
• Payment history (e.g., do you always pay on time or do you sometimes pay late)

3. Credit inquiries

This section displays a list of individuals or entities who have examined your credit report. Such an examination is called a credit inquiry or credit check and is classified as either a hard or soft inquiry.

There are two types of credit inquiries:

• Soft inquiries (or “soft pulls”) don’t affect credit scores. However, while soft inquiries won’t change your credit score, they do appear on your Equifax credit report for up to two years. Examples of soft inquiries include checking your own credit, background checks, or preapprovals).
• Hard inquiries do impact credit scores, in that they may decrease your credit score by a few points. Hard inquiries occur when you apply for credit. And like a soft inquiry, a hard inquiry can stay on your credit report for up to two years. 

It’s important to note that soft inquiries are typically visible only to the individual checking their own report or to potential lenders who have obtained permissible purposes to review the credit history.

4. Bankruptcies

This section contains public records related to bankruptcy and whether or not an individual has filed for bankruptcy in the past, as well as the type of filing and the date.

5. Collections accounts

Last but not least, Equifax credit reports include whether you have any outstanding debt that can be sent to a collection agency. This information is then reported to Equifax and can be found in the credit report’s past-due account information section, which may include accounts from various sources, such as hospitals, banks, retailers, and phone or internet service providers.

How Your Equifax Credit Report Can Help You

If you apply for a mortgage, auto loan, or personal loan, lenders may check your Equifax credit report. By viewing your own report, you can understand what lenders see when you apply for credit and provide more information.

By reviewing your credit file, you can gain insight into your financial position and understand your credit status. This will help you make informed decisions regarding your finances and set clear financial goals. Additionally, if your credit reports or scores are not satisfactory, you can explore ways to improve your credit.

Lastly, by reviewing your credit report from Equifax, you can verify if there are any errors or instances of fraud. In case you find any discrepancies, you can raise a dispute to ensure that all the information on your report is correct.

How to Get a Free Equifax Credit Report

There are three main ways to get a copy of your Equifax credit report for free. First, you can get a copy free from annualcreditreport.com. Second, you can obtain a copy directly from Equifax. And third, if you have been denied a loan or credit line, you can get one through the Fair Credit Reporting Act.

Here are three ways to get a free Equifax credit report:

1. Annualcreditreport.com — The easiest way to get a free Equifax credit report is by visiting annualcreditreport.com. There, you can get free copies of your credit reports from each of the major credit bureaus, such as Equifax, Experian and TransUnion.
2. Directly from Equifax — You can also request your free credit report from Equifax via postal mail or online. To request your Equifax credit report copy online, create a myEquifax account. To require your copy via mail, send your request to Equifax at: P.O. Box 105281, Atlanta, GA 30348-5281.
3. Fair Credit Reporting Act — In the instance where you have been denied credit or a loan, the Fair Credit Reporting Act mandates that consumers receive an adverse action letter that outlines the reason(s) why your loan or credit was denied, along with details on how you can get a free copy of the credit report that was used to make this decision.

What If You Find Incorrect Information On Your Credit Report?

Inaccuracies on credit reports are not uncommon. In fact, The U.S. Federal Trade Commission (FTC) has estimated that about 1 in 5 Americans have errors in their credit reports, implying that it is actually quite common to have incorrect details in your report. And the reality is that these inaccuracies can lower your credit score.

If you notice any incorrect or incomplete information on your credit report, you can file a dispute with Equifax. This can help to accurately update your credit history based on your habits.

How to Dispute an Error on an Equifax Credit Report

You can file a dispute for free with Equifax if you find any errors or incomplete information on your credit report. Once you submit the dispute, you can expect to receive results within 30 days. Learn more about how to file a dispute on your Equifax credit report.

Who Can View Your Equifax Credit Report?

The Fair Credit Reporting Act (FCRA) is a law that was established in 1970. Its purpose is to safeguard consumer credit files by ensuring the accuracy, fairness, and privacy of how credit information is accessed and used.

The FCRA grants permission to specific parties with a “permissible purpose” to view your credit report. This often includes credit, employment, and insurance-related inquiries.

Bottom Line

Equifax is one of the three major consumer credit reporting agencies in the United States. It collects and compiles information about people’s payment history, debt levels and other account information that is reported to it by creditors each month. By reviewing your Equifax credit report regularly, you can ensure that all of the information is correct and up to date. If you find any inaccuracies, it’s important to dispute them as soon to help increase your credit score and help your chances of getting approved for future loans and credit lines.

Frequently Asked Questions (FAQs)