Get All Access for $5/mo

An Equifax 'Coding Issue' Messed Up the Credit Scores of Millions of People Applying For Loans Some people saw swings as much as 20 points, WSJ reported.

By Gabrielle Bienasz

Opinions expressed by Entrepreneur contributors are their own.

Equifax reported inaccurate credit scores for millions of people in the US looking for loans in three weeks in 2022, the Wall Street Journal reported Tuesday. The company confirmed the issue on its website.

"Equifax identified a coding issue within a legacy, on-premise server environment in the U.S. slated to be migrated to the new Equifax Cloud™ infrastructure," the company said Tuesday.

WSJ cited "bank executives and others familiar with the errors."

Lenders use credit scores to help determine whether to approve people for various types of loans. Credit scores can also be an important factor when renting an apartment or leasing a car. They are reported by major three agencies: TransUnion, Equifax, and Experian.

What are Equifax's credit errors?

Per the outlet's report, Equifax sent the incorrect scores to lenders including JPMorgan Chase and Wells Fargo, when folks were looking to apply for mortgages, credit cards, and car loans, with some scores off by as much as 20 points -- enough to change interest rates or cause someone to be rejected.

Equifax said, "initial analysis indicates that only a small number of them may have received a different credit decision."

The company also said in its statement that fewer than 300,000 customers had a score that was wrong by 25 points or more. While scores were sometimes inaccurate, full "credit reports," which scores are calculated from, were not affected, per Equifax.

"We are collaborating with our customers to determine the actual impact to consumers," Equifax's statement added. "We can confirm that the issue has been fixed."

Per CBS News, this was previously reported by National Mortgage Professional in May, and the company later acknowledged the issue.

Gabrielle Bienasz is a staff writer at Entrepreneur. She previously worked at Insider and Inc. Magazine. 

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Side Hustle

The Side Hustle He Started in His College Apartment Turned Into a $70,000-a-Month Income Stream — Then Earned Nearly $2 Million Last Year

Kyle Morrand and his college roommates loved playing retro video games — and the pastime would help launch his career.

Business News

New Southwest Airlines Major Investor Wants to Force Out CEO, Slams Company's 'Stubborn Unwillingness to Evolve'

Elliot Investment Management announced a $1.9 billion stake in the Dallas-based Southwest Airlines on Monday and is urging shareholders to vote for new leadership.

Science & Technology

Why We Shouldn't Fear AI in Education (and How to Use It Effectively)

Facing resistance to new technologies in the educational process is nothing new, and AI is no exception. Yet, this powerful tool is set to overcome these challenges and revolutionize education, preparing students and professionals for a future of unparalleled efficiency and personalized learning.

Business News

Elon Musk Threatens to Ban Employees from Using Apple Products, Says Will Lock Devices in 'Cages'

The Tesla founder sounded off on X following Apple's 2024 Worldwide Developer Conference on Monday.

Business News

Apple's AI Has a Catch — And It Could Help Boost Sales

Not every iPhone owner will get to use the new Apple Intelligence.

Business News

Y Combinator Helped Launch Reddit, Airbnb and Dropbox. Here's What I Learned From Its Free Startup School.

The famed startup accelerator offers a free course on building a business — and answers five pressing questions for founders.