DISPELLING CREDIT REPORT MYTHS

Equifax reveals the truth behind lending decisions

London 17th July 2007 – Is student loans data shared with Credit Reference Agencies? What happens if information on a credit report is incorrect? It appears that consumers are more confused than ever by what information is shared with Credit Reference Agencies and why they may or may not be refused credit by lenders. Leading instant online credit information provider, Equifax, is therefore helping consumers to understand how their credit file impacts on their credit status, as well as uncovering common misconceptions.

“Consumers are often baffled when it comes to understanding what data Credit Reference Agencies actually hold and how lenders make their decisions” confirmed Neil Munroe, External Affairs Director, Equifax. “We believe it is vital that consumers are aware of exactly what information will impact on their ability to obtain credit, to rent a property, gain employment or obtain other financial services. So we are lifting the lid on some of the myths surrounding credit reference agencies and credit reports.”

EQUIFAX DISPELS THE MYTHS

Myth 1:
When children enter into credit agreements, the information goes onto their parents’ credit report.

False
Individuals can get credit from the age of 18 and all credit information is then put on their own credit report. However, if parents open an account for a child in their name, or become a guarantor, that information stays on their credit report for six years after the account has been cleared.

Myth 2:
I have a good credit rating, but was still refused credit. There must be something on my credit file that I can’t see which is stopping me from getting credit.

False
When an individual applies for a copy of their credit report they see everything the lender sees. Lenders don’t base their decisions purely based on the credit report information, they also use their own credit scoring system. Return to the lender to confirm whether the refusal was based on your credit report or credit score to add clarification and allay any fears.

Myth 3:
I had a County Court Judgment against me, which has been satisfied, but I’m still having trouble getting credit or even a new mobile phone account. Nobody seems to be able to help me change this.

False
If a CCJ has been satisfied you simply apply to the lender for proof of this and then contact the credit reference agencies. They will place a Notice of Satisfaction on your credit file, which lenders will be able to see

Myth 4:
I was recently refused credit because my address doesn’t exist and I’m not on the Electoral Roll. Both these facts are wrong, but this must mean Equifax doesn’t have any record of me.

False
Electoral Roll information is vital to verify a person’s address and avoid credit fraud. The first step is to apply for a copy of your credit file to verify what information is on there. Equifax receives data from several different sources and in rare cases addresses can be different and not correctly identified. Simply contact Equifax to raise a dispute and it will be investigated and corrections made to your credit file if necessary.

Myth 5:
I’m a student and was refused an account because I have no credit history. The system means students and young people will never be able to get credit.

False
Lenders like to be able to see a credit history before approving an application, but this is difficult for people just starting out. Make sure you’re on the Electoral Roll, so that the lender can verify your name and address. It may also help to talk to the lender as they may have special services aimed at young people and students.

What is ON Your Credit Report	What is NOT on Your Credit Report
Electoral Roll Information This information is shown on a credit report and is used to verify a person’s name and address that they have provided on an application form and to establish the length of time someone has lived at an address..	Credit Accounts Opened Pre-94 Currently this information is not shared by lenders to Credit Reference Agencies. However, it is currently under review by the government and a decision will be made in the near future as to whether to include this information.
Credit Account Information Credit Reference Agencies hold information from lenders about credit accounts. Accounts are classed as 'settled', 'active', 'defaulted', or 'delinquent'. The payment history shown on your file will relate to the period before you repaid your credit.	Savings Account A credit report does not include information about your savings accounts.
County Court Judgments or Decrees Court Judgments or Decrees are held on your credit report for six years from the date of the judgment. Credit Reference Agencies receive the information from Registry Trust.	Fines Fines information does not appear on a credit report.
Searches This information is shown on your report, where a lender has performed a credit check. These are kept on your credit report for 1 year.	Student Loans This information is not currently supplied to credit reference agencies but there are ongoing discussions on whether this will be supplied in the future.
Shared Financial Commitments Only your own credit history, and that of anyone you specifically share a financial responsibility with, such as a joint bank account, will be provided to a lender.	Third Party Information Your credit file will not include financial information about members of your family who live, or have lived, with you, if you don’t share any joint financial commitments.
Current Account Current account information from all the high street Banks was supplied to the Credit Reference Agencies last year (2006) An overdraft balance is the only financial information you will see on your credit file.	Child Support Agency This information will not appear on a credit report.
Council of Mortgage Lenders Possessions This information will be on your Credit file if you have voluntarily given up your home or had it repossessed.	Medical History This information is not included on your credit report.
CIFAS Protective Register This information will only appear on your credit file if you have registered with the Protective Register. It aims to detect and prevent fraud, in order to protect innocent people whose names, addresses, or other details, are used fraudulently by others in order to get credit.	Criminal Records This information is not included on your credit report.

END

To arrange an interview with Neil Munroe please contact either Claire Foster, Kate Clements, Elinor Puzey or Louise Fowler at HSL on 0208 977 9132 or email claire@harrisonsadler.com

About Equifax

Equifax Inc. is a global leader in information technology that enables and secures global commerce with consumers and businesses. We are one of the largest sources of consumer and commercial data. Utilizing our databases, advanced analytics and proprietary enabling technology, we provide real-time answers for our customers. This innovative ability to transform information into intelligence is valued by customers across a wide range of industries and markets. Headquartered in Atlanta, Georgia, Equifax employs approximately 4,600 people in 13 countries throughout North America, Latin America and Europe. Equifax was founded 107 years ago, and today is a member of Standard & Poor’s (S&P) 500® Index. Our common stock is traded on the New York Stock Exchange under the symbol EFX. .

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