Equifax
Definition and meaning of Equifax in real estate.
Equifax is one of the three major national credit reporting bureaus in the United States, responsible for gathering and maintaining credit histories for millions of consumers. Lenders review Equifax credit reports to evaluate the creditworthiness of home buyers applying for mortgages.
In more detail
Along with Experian and TransUnion, Equifax collects financial data from credit card companies, banks, and public records, compiling this information into a standardized credit report. Lenders use this data to generate credit scores, which directly influence whether a buyer qualifies for a mortgage and the interest rate they will be offered.
Mortgage underwriters typically pull a tri-merge credit report, which combines credit data and scores from all three major bureaus. It is important for consumers to review their credit reports regularly to correct any inaccuracies that could negatively impact their borrowing power.
Key facts
| Category | Mortgages & Financing |
|---|---|
| Also known as | Equifax Credit Information Services |
| Headquarters | Atlanta, Georgia |
| Big three peers | Experian and TransUnion |
A prospective homebuyer pulls their Equifax credit report several months before applying for a mortgage to check for unpaid collections or late payments that could hurt their chances of approval.
Frequently asked questions
How often can I check my Equifax credit report for free?
Under federal law, you can check your report for free once a year through the official Annual Credit Report website, though temporary laws sometimes allow more frequent checks.
How does Equifax get my financial information?
Creditors like banks and credit card issuers voluntarily report your payment history, credit limits, and account balances to Equifax on a monthly basis.