Credit Score Basics > What does Equifax do?

What does Equifax do?

Equifax is one of the world's largest and oldest credit reference agencies. It holds financial data about your credit history, based on which it creates a credit report and calculates a credit score. Lenders use these two tools when reviewing your loan applications.

What is a credit reference agency?

A credit reference agency (CRA) is a company that holds financial data about you with the goal of helping lenders figure out if you're a reliable borrower. This personal data includes loan applications, bank accounts, and whether you make payments on time.

Is Equifax a UK company?

Equifax is actually an American company based in Atlanta, USA, but with global operations. They've been around for over 120 years and operate in 25 countries. One of the countries it's present in is the UK, where it operates through a subsidiary called Equifax Limited.

How much does Equifax cost in the UK?

Equifax costs £14.95 a month. For this price, you get:

• Access to your full Equifax credit report;
• Access to your Equifax credit score, updated daily;
• WebDetect, which is a service that scans the web for signs of leaked personal information;
• And SocialScan, which scans social media platforms to see what personal information about you is publicly accessible by fraudsters.

If you don't want to pay £14.95 a month but still want to know what your Equifax credit score or credit report looks like, you have three options:

• Sign up for the free 30-day trial of Equifax Credit Report & Score;
• Do the same but on CheckMyFile, which has a similar price but lets you check all three credit reports;
• Or sign up to ClearScore, which gives you access to your full Equifax credit report and score, although it only updates monthly.

Also, just like Experian and TransUnion, Equifax offers a free Statutory Credit Report, a more basic version of your credit file. Although it doesn't tell you your Equifax credit score, it's still a great option if you want to check your credit file for errors.

What's in my Equifax credit report?

Your Equifax credit report contains two kinds of information: information lenders need to verify your identity and information they need to determine whether you're likely to repay the loan on time.

This includes things like:

• Your name, where you live, and any other addresses from the past six years;
• Whether you're registered on the electoral roll;
• How many accounts you've opened in the past six years;
• How regularly you pay your bills, debt repayments;
• Whether you have any missed or late payments;
• How much credit is available to you, and how much of it you usually use (so-called "credit utilisation");
• Who you're financially associated with (for example, if you have a joint bank account with your partner);
• Whether you've declared bankruptcy, entered an IVA, had a default, or were taken to court and were issued a CCJ over your debts in the past six years.

What can lenders and other companies see on my Equifax credit report?

What lenders and other companies can see on your Equifax credit report depends on a few things, but mainly on why they're asking for your credit report.

If they ask for it because you applied for a loan and need to see your creditworthiness, they'll get access to all the information in your credit report (well, up to the last six years). They can also see if other lenders have run a similar check on you in the past 12-24 months. This kind of check is called a hard check (or hard search), which can affect your credit score.

In some cases, though, they might only run what's called a "soft check"—for example, if they simply want to send you a promotional email with their latest credit card and want to know if you're eligible. This soft search will only show them a few details; plus, it's only visible to you and won't affect your credit score.

Which lenders use Equifax?

Equifax is the oldest credit reference agency in the UK (it has been operating here since 1970), so it's no surprise that almost every bank, credit card provider, mortgage lender, and mobile phone company uses it.

That includes RBS, Coop Bank, Halifax, HSBC, Lloyds, Nationwide, Santander, TSB, Sainsbury's Bank, Monzo, etc.

The only exceptions we could find are Danske Bank, American Express, Post Office, and Tesco Mobile. These only work with Experian.

However, remember that even the banks and companies that use Equifax don't usually rely solely on it—the majority also use Experian and TransUnion, so you should check their credit scores and reports as well.

What can Equifax help with regarding my credit report or credit score?

Equifax, like Experian and TransUnion, does not have the authority to decide what goes on your credit report. It simply holds this data securely.

If you spot something off in your Equifax file, you should reach out to the responsible company. They're the only ones who can fix it.

Equifax can only get involved if you can't get the error sorted – and even then, they can only act as a mediator.

Equifax can help you by letting you add a note (called "Notice of Correction") to your report in which you can explain your situation. For example, you could use this note to inform future lenders that you missed previous payments due to illness or redundancy at work.

Finally, Equifax can also help with investigating signs of fraud. For example, if you see a hard check you don't recognise, a fraudster may be trying to apply for loans in your name. Reach out to Equifax as soon as possible – they'll get it sorted.

Does Equifax offer a Boost service like Experian?

Unfortunately, Equifax does not offer a service like Experian Boost. However, if you sign up either to Equifax Credit Report & Score or to ClearScore, you will regularly get tips on how to improve your credit score.

Most of these will be things you might already know: register to vote, make sure you don't miss payments, and use credit cards carefully.

Another way to improve how your Equifax credit report appears to lenders is to download a credit-building app like Wollit.

Wollit reports your monthly subscription as a loan repayment to Equifax (as well as Experian and TransUnion), showing that you pay your debts on time and potentially helping you boost your credit score.

• Credit Reference Agencies