Consumers are confused by Equifax's new credit score rule

 

 

 

In Canada, Equifax reportedly lowered the credit scores of many people. Many people's credit scores were reduced due to a policy that most people are not aware of. With this, many people were denied everything from car loans to credit cards. When they checked their Equifax account, they found that their score was zero without warning or explanation.

Despite complaining to Equifax, many did not receive a solution. Many say that they approached the federal government and provincial supervisory bodies for help, but did not see any results. Equifax later came out to explain the policy. The explanation is that if a credit file is inactive, that customer is labeled "unscorable" and their score will drop to zero. However, TransUnion, another major credit bureau in Canada, said that it does not reset credit scores. A credit score is usually a number between 300 and 900. Credit scores are used by lenders to understand how likely a person is to repay a loan.