Written by: Andrew Allen
Edited by: Lillian Guevara-Castro
Reviewed by: Adam West
Key Takeaways
Equifax has redesigned its physical credit report for U.S. consumers to help people gain a better understanding of their credit history and overall financial wellness.
The new Equifax report prominently displays a consumer’s credit score alongside an overview of the factors that can influence the score.
The company’s innovative overhaul to credit reports may spur other credit reporting agencies to facilitate consumer understanding of credit data.
Consumers who understand the information conveyed in their credit report may have an advantage over those who don’t when it comes to identifying how their credit use affects a lender’s view of their creditworthiness.
The new design includes a summary of the factors that can influence a credit score.
The new credit report is another way the company is “empowering consumers to take control of their financial well-being and make more informed financial decisions with a clear understanding of the factors that can affect their credit,” said Mark W. Begor, Equifax’s CEO, said in a press release on the credit report redesign.
While previous versions of the report were text heavy, the new Equifax credit report makes use of graphics and color-coded sections to help people better understand their credit information. The updated report also includes a section that educates people about which credit activities have helped to improve or damage their credit score.
User Feedback Drives Improvements
Equifax used market research to inform the design of its new credit report.
The report’s design “was undertaken in direct response to consumer feedback,” said Tina Shell, Equifax’s Senior Vice President of Direct-to-Consumer Operations, U.S. Information Solutions, in the release.
Prior to Equifax’s announcement of its new credit report design, the Consumer Financial Protection Bureau (CFPB) conducted focus groups to gauge consumer impressions of credit reports. The CFPB indicated that some participants said they felt overwhelmed when they tried to understand the contents of their report.
The CFPB concluded that “efforts by credit reporting agencies to make it easier for consumers to access and interpret their reports could be a useful contribution to helping consumers navigate their credit histories.”
Incorporating lessons learned from consumer feedback into the design of credit reports is one way credit reporting agencies can help people reach solid financial ground and stay there.
In light of Equifax’s newly designed report, other credit reporting agencies may consider enhancing their reports to remain competitive, especially if the market embraces Equifax’s changes.
“Our goal is to be consumer-friendly at every touchpoint, and the visual redesign of our standard U.S. consumer credit report is a testament to that,” Shell said.
