Equifax is a global data analytics and technology company. The company plays a vital role in the economy by assisting businesses and individuals in a variety of industries such as automotive, communications, utilities, financial services, fintech, healthcare, insurance, mortgage, professional services, retail, e-commerce, and government agencies make critical decisions with greater confidence.
The company is one of the three major credit reporting agencies and it is headquartered in Atlanta, Georgia. It operates in 24 countries in America, Europe, and the Asia Pacific with over 10,000 employees.
What does Equifax do?
Equifax operates primarily within the business-to-business sector, selling consumer credit and insurance reports as well as related analytics to businesses. The company also sells demographic data and software. Besides that, they also offer a commercial credit report that includes financial and non-financial information on businesses of all sizes.
The company also collects and distributes data via its National Consumer Telecom and Utilities Exchange (NCTUE), which is a trade of non-credit information including the payment history of a consumer on telecom and utility accounts.
How does Equifax calculate your credit score?
A high credit score can boost your confidence and help you get a better deal with lenders. If you’re applying for credit or planning to do so in the future, it’s important to know your Equifax credit score. Applying for credit cards and loans requires a credit check.
Equifax calculates your credit score based on information like:
- Overdue Debts
- Type of Lender
- Type of Credit requested
- Credit inquiries on Credit Applications
Ultimately, your Equifax credit score is calculated using the information held on a particular date. It’s a number between 0 and 850. In simple terms, the higher your credit score will be (calculated by Equifax), the better your credit profile, as it signifies a lower risk.
The result of your credit score calculated by Equifax is based on the Equifax Credit Score Model. The scores are proprietary and based on Equifax’s own generated algorithms.
These are key contributing factors that are taken into consideration when Equifax is calculating your credit score:
- Type of credit provider
- The type and size of credit requested in your application
- Number of credit inquiries and shopping patterns
- Directorship and proprietorship information
- Age of credit report
- The pattern of credit inquiries over time
- Personal details
- Default information
- Court writs and default judgments
- Commercial address information
Above all, your Equifax credit score is dynamic, and changes are based on the date the score is calculated and the circumstances under which it is required with a number of key factors contributing to its result.
Certain lenders use this information to evaluate credit. However, lenders may will consider their own lending guidelines and criteria when evaluating your application, not just your Equifax Credit Score.
