Credit Score is always important when you are in debt or mortgage market. According to the economic climate your score varies from being excellent to below average. Credit Score is a three digit number that show the character of your credits in the finance market. If you have scored 900 then you are an excellent player in the field. If you are somewhere in 100 something then brother you need to pull up your socks.
Now if you are getting little confused about why we are talking about credit ratings when the title is saying something else, then let me clear you here. Equifax automatically arrives when anyone is talking about credit ratings or credit score across the globe. Equifax is one of the top 3 largest credit rating companies in the world based in Atlanta. Here I have 10 interesting facts about the company and their histories that surely make you go wow.
10 Facts to Know about Equifax
- Equifax is a company run by two brothers. One of them used to have a grocery shop from where he had got this idea of having a credit reporting agency. Back in late 19th century one of the brothers Cator used to record the customers’ details for evidence purposes. From there he got the idea of having credit reporting agency.
- After a point of time he used to sell the details of the customers to other business owners, mainly the insurance agencies who were willing to pay for the details. The details could be anything starting from their professional life to personal life. Using these details the company had started selling the credit evidence to the insurance companies at the time of insurance claims and also had made good names in the field of employment reports while people are seeking jobs.
- In 1900 Cator changed his business to insurance company to grocery shop. Since then Cator started selling details to other insurance companies about the customers.
- Gradually the company grows however that credit reporting thing had become risky for the company owners as well. In spirit of expanding business the owners started collecting false information of the customers and also bribed the employees to get negative information.
- In 1975 the company changed its name to Equifax after a lot of cases and lawsuits against it. By that time the company got summoned from the court to not spread negative information about the customers if they are not sure. But this as well could not stop them from selling details ( mostly false and negative) to the various business owners for future process.
- In 2000 again the company had to face legal issues when millions of customers had filed case against the company that they are avoiding their calls. Many of them had reported that they have no clue about their credit reports. Due to this inconvenience many of the debtors could not get a good score in financial market that had become the biggest obstacles in their mortgages and such.
- Again in 2013 another sets of customers reported against the company that they still maintain the false reports about the customers for which they are getting low credit scores in financial market. However the company had not agreed to the fact and denied any action against it. They continue to cater B2B process through these false information. This leads to low credit score for many a people.
- Back in 60s the company started a new system. In that system they used to give open access to the personal details of the customers. If anyone purchased the details they could directly access the details from Equifax’s computers without any issue. These details include personal life, marital life, sex life, children, health and everything that should not be published outside.
- A number of people filed report against the system as well. That highly confidential information was out from their system without any prior notification to the customers. It wasn’t running for long as the Fair Credit Reporting Act alleviated the system. After that the company had changed its name to Equifax. Beforehand it was called Retail Credit Company.
- The company has become one of the largest credit reporting companies today with offices and branches in 14 different countries. Started from a grocery shop now it had become the largest agency. Having said that I must say the company still has some loopholes that force people to file cases against the company every now and then.