Equifax makes money by knowing a lot about you
Photo: (AP Photo/Mike Stewart, File).
October 06, 2017 02:55 AM
By KEN SWEET
AP Business Writer
NEW YORK (AP) - Equifax knows a lot about you. That is, in essence, how it makes money.
The company and its competitors, Experian and TransUnion, make most of their money selling bulk lists to banks and credit card companies. Brett Horn, an industry analyst with Morningstar, says they gather information from lenders, aggregate it, and sell it back to them. The companies get information, such as whether you've paid your bills on time each month, largely for free.
They sell credit reports to potential employers. And there are products like fraud protection services and credit monitoring. They also charge fees to customers who want to freeze their files.
Equifax had more than $3.1 billion in revenue last year. Experian's revenue came to $4.34 billion, while TransUnion had $1.7 billion.
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Created: October 06, 2017 02:55 AM
(Copyright 2017 by The Associated Press. All Rights Reserved.)