HOW DO YOU SCORE?
MyEquifax empowers consumers with unique instant online access to
The Equifax Credit RatingTM
www.equifax.co.uk
London, July 15th 2004 - MyEquifax, the instant online credit information service launched in September 2003, has announced its latest development, designed to empower consumers in managing their financial health. The Equifax Credit RatingTM dispels the mystery of credit scores, which MyEquifax research reveals remains one of the key concerns of consumers.
"More than 100,000 people requested at least one copy of their Equifax Credit ReportTM in the first six months following its launch last year" confirmed Michael Shannon, Managing Director, Equifax Plc. "Now with the Equifax Credit RatingTM we believe we are further empowering consumers to have a better understanding of their credit profile.
"Our research has revealed that consumers believe credit ratings are a real mystery when it comes to applying for credit. The Equifax Credit RatingTM will dispel that mystery, providing consumers with a valuable insight into their credit rating. What makes the Equifax Credit RatingTM so powerful is that it is based on all the credit information used by lenders when assessing applications, and it is available online instantly."
The Equifax Credit RatingTM
The Equifax Credit RatingTM comprises a copy of an individual's Equifax Credit ReportTM and their credit score. Using sophisticated data analysis and decisioning technology, the credit score is calculated using information in an individual's Equifax Credit ReportTM, compared to the credit information of thousands of people in the UK. Each type of information in an individual's Equifax Credit ReportTM is given points, based on how that information compares to people who pay their credit on time. The more information that compares favourably to those people who pay their credit on time, the higher the score.
There are five categories of score:
| Above 475 | Excellent | 400-474 | Good | 350-399 | Fair | 300-349 | Poor | Below 299 | Very Poor |
Commentary is provided with an individual's Equifax Credit RatingTM, indicating how likely it is that they will be able to obtain credit, on the basis of their score. The Equifax Credit RatingTM also provides risk signals against each of the sets of data used to create the score, including the Electoral Roll, Credit Agreements, Searches and County Court Judgments. A 'traffic light' signal enables a consumer to quickly identify any areas of information on their Equifax Credit ReportTM which may be affecting their credit score. Advice is also provided on how to improve the information so that consumers can improve their overall credit rating.
Providing instant, online access, the Equifax Credit RatingTM gives consumers immediate access to everything they need to know about their credit status. And the completely interactive system means that they can drill down to the information that makes up their credit score to identify how to improve their credit report and rating.
A copy of an individual's Equifax Credit ReportTM is always provided as part of the Equifax Credit RatingTM, ensuring that they can fully understand the information that has influenced their score. And the interactive facilities already established for the Equifax Credit ReportTM mean that a consumer can initiate a dispute or query any information in their credit file online, instantly.
"We have been very encouraged by the interest shown by consumers in the content of their credit files" confirmed Michael Shannon. "We believe this shows that they feel empowered to take greater control of their personal financial health, as well as having the ability to negotiate the best credit deals. Now the Equifax Credit RatingTM will give consumers even more knowledge, with a greater understanding of the factors that influence credit decisions made by lenders."
The Equifax Credit RatingTM, comprising the Equifax Credit ReportTM and score costs £11.75 (including vat) and can be purchased from www.myequifax.co.uk. An Equifax Credit ReportTM can be purchased stand alone for just £8.25.
The Equifax Credit RatingTM can be viewed on screen and is also available in a printable format. Once obtained, the full report and rating is available to be reviewed online for 30 days in an encrypted form, preventing anyone from accessing another individual's information.
Consumer Perceptions of Credit Ratings
MyEquifax surveyed 5,000 members in early July 2004 to find out about consumer perceptions and understanding of credit ratings. The following findings were revealed:
- 80% of respondents had been refused credit and 77% claimed to know what a credit rating was
- 65% were told they were refused credit because of their credit rating but only 7% thought that lenders explained clearly how they rate credit applications
- When asked what information they thought was taken into account in their credit rating, 42% thought the type of job they held was considered and 68% thought the length of time they had held their current job was rated. 37% also thought they marital status counted. None of this information is included in an individual's credit file
- 53% thought that where they live affects their credit rating
- 66% said that they thought 1 month's missed payments on credit agreements would affect their credit rating - this isn't necessarily the case
- 31% thought that only paying the minimum balance on their credit card bill affected their credit rating
- Only 62% thought they could change their credit rating.
- 16% thought that their credit rating would affect them getting a job
Safe, Secure Access
MyEquifax uses eIDVerifierTM, the leading edge in ID authentication technology, which is already used by Government for Internet certifications to ensure all its information is secure. Before individuals can access their Equifax Credit ReportTM and Equifax Credit RatingTM they are asked a number of multiple choice questions designed to verify their identity. If the questions are answered incorrectly the applicant is directed to the Equifax Call Centre where further security checks will be made manually before the individual is given their personal password.
