Equifax, one of the three major U.S. credit bureaus, is reporting increased profits in the second quarter. The company is responsible for determining whether a consumer has good or bad credit by gathering data from various sources.
Equifax posted increased revenue of 7 percent during the second quarter of 2010 as compared to the same period a year prior. The company also improved its profit margins and liquidated some of its businesses, such as its car loan software arm and direct marketing division.
Equifax’s strong results are one of the signs that banks are beginning to lend again. Many financial institutions put a freeze on subprime lending during the economic recession, meaning some Americans had trouble getting car loans. But now, even those with bad credit are able to get loans, as financial institutions begin to look toward recovery.
“We continue to be optimistic and expect improved, year-over-year performance for the third quarter consistent with the full year outlook we expressed at the beginning of the year,” said Equifax CEO Richard Smith.
Those looking at car loans should become familiar with Equifax, as the company helps determine a consumer’s credit score.