Smart Money Overview
Equifax is one of the three major U.S. credit bureaus and plays a central role in determining your creditworthiness. It collects financial data like payment history and credit usage to build your credit profile. Lenders rely on this information to assess your eligibility for credit cards, loans, and mortgages.
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📊 Credit Model: Uses VantageScore® 3.0 (not FICO®)
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📈 Average U.S. Score (Equifax): 705
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🏛️ Public Company: NYSE: EFX
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🌐 Headquarters: Atlanta, GA | Employees: ~15,000
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🛡️ Features: Offers credit monitoring, identity theft protection, and fraud alerts
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⚠️ Security History: Major breach in 2017; systems now updated
Equifax is one of the three major credit bureaus in the United States. Equifax plays a central role in how lenders, landlords, employers, and insurance providers assess your financial reliability. From your payment history to your credit utilization, Equifax compiles data that helps determine whether you are likely to pay your bills on time.
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How Equifax Works
Equifax’s primary business is to gather and maintain financial data about consumers and businesses. It collects this information from banks, credit card companies, mortgage lenders, auto lenders, and other financial institutions. The company then uses this data to create credit reports and generate credit scores that reflect an individual's ability to manage credit effectively.
Each time you apply for a credit card, use a personal loan, or miss a credit payment, there's a good chance that Equifax and other bureaus, including Experian and TransUnion, record the activity. Lenders use this data to evaluate your creditworthiness and make decisions about your interest rates, credit limits, and loan approvals.
- NYSE Ticker: EFX
- Headquartered: Atlanta, GA
- Employees: 15,000
Equifax Credit Rating
Equifax provides credit scores that assess your financial behavior. While Equifax uses the VantageScore® 3.0 scoring model, it is just one of many types of credit scores.[1]
Most top lenders still rely on FICO® Scores, which are often generated using Equifax’s credit report data, but have a different scoring model.[2]
The average credit score in the United States, as of March 2024, based on Equifax data, is 705.[3]
Lenders use your Equifax credit score to make a quick assessment of your creditworthiness. When they see a credit score using the Equifax VantageScore®3.0 model, here’s how they bucket scores:[4]
| Credit Score | Ranking |
|---|---|
| 748–850 | Excellent |
| 716–747 | Very Good |
| 661–715 | Good |
| 600–660 | Fair |
| 300–599 | Poor |
Your Equifax credit score will oscillate over time based on a variety of factors. Here are the factors that continuously affect your real-time credit score:
- Payment history (40%) – The most heavily weighted factor is whether you have paid your bills on time. Make sure that you do not miss any credit card or loan payments to maintain a healthy credit score. (Read about How to Create a Budget).
- Depth of credit (21%) – Another major factor is how long you have had your credit accounts open and the diversity of your credit accounts. Keeping accounts open can be a smart money habit. (Read about Credit Age).
- Credit utilization (20%) – One key variable is how much of your available credit you use. Credit utilization tracks whether you are regularly relying on your credit accounts.
- Balances (11%) – Keeping your balances in check is a smart move. Equifax looks at your total outstanding credit balance. If your balances are too high, there could be an issue. (Read more about debt-to-income ratio).
- Recent credit (5%) – Applying to a bunch of credit applications all at once or in close proximity can negatively impact your credit score. Our recommendation is to space out your applications and carefully consider which credit products are best for you. (Read about the Best Credit Cards).
- Available credit (3%) – Your available credit is the total amount of credit limits based on all of your credit products – credit cards, personal loans, and mortgages. (Learn how to request an increase to your credit limit).
Equifax updates your credit report as new information is provided to the company. Your score will fluctuate over time. You can use this information to boost your credit score.
What Products Does Equifax Offer?
Equifax provides products to businesses and consumers. Here are some of the low-cost products available to consumers from Equifax:
| Core Credit™ | Credit Monitor™ | Complete™ |
|---|---|---|
| Free | $4.95/month | $9.95/month |
| 1-bureau credit score (monthly) | 1-bureau credit score (daily) | 1-bureau credit score (daily) |
| Equifax credit report (monthly) | Equifax credit report (daily) | Equifax credit report (daily) |
| Equifax credit report monitoring | Equifax credit report monitoring | |
| Credit score monitoring | Credit score monitoring | |
| Equifax credit report lock | Equifax credit report lock | |
| Automatic fraud alerts | ||
| Identity restoration | ||
| Up to $500k identity theft insurance |
Source: Equifax Website [5]
What Your Equifax Credit Report Includes
Your Equifax credit report is a detailed record of your credit history. It includes the following sections:
- Personal Information – Your data includes your name, Social Security number (last four digits), date of birth, address, and employment history.
- Credit Accounts - All current and past credit accounts, including credit cards, mortgages, auto loans, and student loans. Each listing shows the account status, credit limit, current balance, and payment history.
- Hard Inquiries - Lists the lenders or creditors who have pulled your report in the last two years.
- Public Records - Bankruptcies and other legal actions related to debt (e.g., foreclosures, tax liens) that may impact your creditworthiness.
- Collections - Accounts that have been sent to collections agencies, including unpaid bills or charged-off loans.
You are entitled to one free Equifax report per year through AnnualCreditReport.com. It's a smart money habit to review your report regularly to catch errors or fraud early. If you find an error, you can file a dispute with Equifax.
Read More: 7 Steps to Get Your Free Credit Report
Is Equifax the Best Credit Score?
There is no one "best" credit scoring model. However, Equifax certainly plays a central role in the financial data of millions of Americans (including you). Thousands of lenders use its data to evaluate new applications.
Whether you are applying for financing to buy a new car or shopping for the best personal loan to renovate your backyard, a healthy credit score and a clean credit report will help you secure the best financing terms.
Equifax is one of the most trusted brands in the credit evaluation space, so be sure to get your annual credit report and review it carefully.
Pros of Equifax
- Widespread use – Equifax is a household name. It is one of the most commonly used credit reports by lenders of all types.
- Real-time data – Account activity is updated frequently as lenders report more data to the bureau.
- Credit monitoring tools – Equifax offers free and paid services that provide alerts and protection.
- Credit freeze feature – You can freeze or lock your credit to prevent identity theft. A credit freeze won’t affect your credit score
Cons of Equifax
- Data breaches – Equifax experienced a significant breach in 2017 that compromised the personal data of about 147 million people.[6] It has since improved its security, but the incident remains a concern for some consumers.
- Report differences – Your Equifax report may differ from your TransUnion or Experian report, depending on which lenders report to which bureaus.
Frequently Asked Questions
- Equifax provides credit report data.
- FICO is a separate scoring model that may use Equifax data to calculate your score.
Yes — pay bills on time, reduce balances, and limit new credit applications.
As soon as new data is reported by lenders — often monthly or more frequently.
Smart Summary
Equifax is one of the three major credit bureaus that influence how lenders view your financial trustworthiness. It collects and analyzes your credit activity, generates reports, and offers credit scores based on your financial behavior. Monitoring your credit report and score from all three major credit bureaus is a smart way to have a comprehensive, real-time pulse of your credit profile.
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(1) Equifax. Are Scores from FICO and VantageScore Different? Last Accessed July 21, 2025.
(2) myFICO. FICO® Score, The Score That Matters. Last Accessed July 21, 2025.
(3) Equifax. What Is the Average Credit Score by State? Last Accessed July 20, 2025.
(4) Equifax. Understanding VantageScore® Ranges. Last Accessed July 20, 2025.
(5) Equifax. Compare our Value Products. Last Accessed July 20, 2025.
(6) Equifax Data Breach Settlement. Welcome To The Equifax Data Breach Settlement Website. Last Accessed July 20, 2025.
