Major credit reference agencies launch guide to credit information
Equifax, Experian and TransUnion work together to demystify credit industry
Guide explains what information lenders use to make decisions
UK, June 23, 2020: The UK’s three largest credit reference agencies (CRAs) have collaborated on a new guide to help people understand how their credit-related information is used by lenders. Equifax, Experian and TransUnion have launched the guide – Understanding your credit information and how lenders use it – to inform people about the factors lenders consider when deciding whether to accept an application.
The guide also explains what happens to people’s information after an account has been opened and a person’s rights if the application is refused. It highlights the importance of regularly checking your credit report and score, as well as sharing the steps a consumer should take if they’re the victim of identity fraud.
Additionally, it outlines the different types of credit-related information and who can use it for what purposes, while explaining people’s rights and what they can expect from the organisations that use their information.
Lisa Hardstaff, Head of Consumer Experience and Communications at Equifax, said: “Access to credit, be it a loan, mobile phone contract or a mortgage is something most of us will need at some point in our lives. We believe it is key that our customers understand their Equifax credit report and score and the factors that influence them. The document the three CRAs have created will help anyone wishing to understand how their credit information is used by CRAs, lenders and other companies that have access to their credit data. We hope that this document and the other educational information the CRAs make available to UK consumers will enable them to live their financial best and provide useful guidance to take whatever steps they need so that they are credit ready in the future.”
Common misnomers about credit-related information are also tackled in the guide.
Top five credit myths… and the truth:
- There’s a credit blacklist: There is no such thing. Credit reports are factual and mostly positive.
- Previous occupants affect your score: Credit checks are on people, not addresses.
- Credit refusal damages your score: Lenders do not tell credit reference agencies whether you have been accepted or refused credit. The outcome isn’t shown on your report, just the fact you applied.
- Credit reference agencies decide who gets credit: Credit reference agencies inform decisions by providing some of the information lenders use, but only the lender can decide which customers to accept and refuse.
- Checking your credit report harms your score: You can do this as often as you like with no impact.
You can download the Understanding your credit information and how lenders use it guide from Equifax.
ENDS
Media contacts:
Equifax UK Global Consumer Solutions Press Team:
Wendy Harrison / Cecile Stearn
T: 07850 372 469 / E: equifaxbtocteam@harrisonsadler.com
About Equifax
Equifax Inc., “Equifax” is a global information solutions company that uses unique data, innovative analytics, technology and industry expertise to power organisations and individuals around the world by transforming knowledge into insights that help make more informed business and personal decisions.
Headquartered in Atlanta, Ga., Equifax operates or has investments in 24 countries in North America, Central and South America, Europe and the Asia Pacific region. It is a member of Standard & Poor's (S&P) 500® Index, and its common stock is traded on the New York Stock Exchange (NYSE) under the symbol EFX. Equifax employs approximately 11,000 employees worldwide.
Equifax Ltd is one of the Equifax group companies based in the UK. Equifax Ltd is authorised and regulated by the Financial Conduct Authority.