Protecting Your Financial Health After the Los Angeles Fires

When it comes to personal finances, most people do their best to make informed decisions. But financial decisions are not always simple and understanding how they work is not always straightforward.   A recent Experian survey highlights just how real that challenge is. Nearly half of U.S. adults (47%) say they have made a financial decision they later regretted because they did not fully understand the terms.  And it is not because people are not trying.   In fact, 75% of consumers say financial education is important in helping people manage financial decisions responsibly. At the same time, there is still a gap. One-in-five say they are only slightly confident or not at all confident in their understanding of personal finance, and many continue to rely on informal sources for guidance.  Where the gap shows up  That lack of confidence shows up in real ways.  Nearly half of U.S. adults (46%) say they always or often worry about covering monthly expenses. In that kind of environment, financial decisions carry even more weight, and the margin for error becomes smaller.  At the same time, many consumers are turning to sources that may not always provide complete or reliable information. Forty-six percent say they rely on friends or family for financial advice, and 43% turn to online searches, while far fewer look to financial institutions (24%) or financial advisors (23%) for guidance.  That creates a real risk because informal or incomplete information can lead to decisions people do not fully understand.  It also highlights an important opportunity for the financial services community to do more to meet consumers where they are, with information that is accurate, accessible, and easy to understand.  Why financial literacy matters more than ever  From managing everyday expenses to planning for the future, consumers are navigating a growing number of financial tools, products, and decisions. But many are doing so without the clarity or confidence they need.  That is why financial literacy is not just helpful. It is foundational.  It helps people better understand their options, ask the right questions, and make decisions that align with their long-term goals.  A more complete picture  Another takeaway from the research is that consumers are open to new ways of understanding their financial lives.  Nearly half of U.S. adults (48%) say including on-time payments such as rent, utilities, or other recurring bills in financial decisions would improve their financial opportunities.  That reflects a broader shift. Consumers want systems that better align with how they actually manage their money day to day.  For the financial services industry, that signals an important evolution. Expanding the types of information used to understand consumers’ financial behavior can help create a more accurate and inclusive view, one that recognizes responsible habits that may have previously gone unseen.  That kind of progress has the potential to expand access and create more opportunities, particularly for consumers who may not fit neatly into traditional models.  Looking ahead  Improving financial outcomes starts with improving understanding.  The findings reinforce a clear opportunity. When consumers have access to better information, clearer insights, and a more complete view of their financial behavior, they are better positioned to move forward with confidence.  At Experian, we remain focused on helping advance that understanding through education, transparency, and responsible innovation, so more people can navigate their financial lives with clarity and confidence. 

I still remember the first apartment my husband and I rented. It was a modest one-bedroom in a less-than-ideal neighborhood, but affordable nonetheless. We cherished the independence it gave us, though I couldn’t help but dream of the day we’d own a home of our own. Like many renters, I worried about whether we would ever be “ready.” Was my credit strong enough? Would we be able to save for a down payment? Did we even understand the mortgage process? Those questions stayed with me for years until we finally purchased our first home. Looking back, I realize I could have saved myself a lot of stress if I had better understood the steps to prepare for homeownership. That’s why I’m so passionate about helping today’s renters feel more confident as they plan their journeys. Renters are more optimistic than ever Experian recently surveyed U.S. renters and found nearly half (47%) believe they’ll be ready to buy a home in the next four years. And when looking out over the next eight years, that jumps to 67%. This optimism is encouraging, especially among Gen Z and Millennials, who represent the next wave of homeowners. But optimism alone isn’t enough. Renters told us their biggest barriers include saving for a down payment, keeping up with rising home prices, and managing their credit scores. Nearly 40% also admitted they don’t feel fully confident in their financial knowledge around homeownership. The good news? There are concrete steps you can start taking today to put yourself in the best position possible when you’re ready to buy. Four tips to help you prepare for homeownership Understand your credit profile Your credit history plays a big role in qualifying for a mortgage. Sign up for a free Experian membership to check your credit report, get alerts about changes, and see where you stand. Knowledge is power and checking your credit report regularly can help you understand ways to improve your credit score to better prepare for homeownership. Get credit for paying rent As a renter, one of your biggest monthly expenses may not even be reflected on your credit report. By using Experian Boost®[1], you can add eligible rent, utility, and even streaming service payments to your credit file. This can instantly help strengthen your credit history and show lenders you consistently pay on time. Your landlord or property management may also report your positive rent payments to Experian RentBureau – the industry’s largest rental data base. With the introduction and increased adoption of modern scores in mortgage decisions, payments like this may help improve your ability to qualify for a mortgage. Build your financial knowledge Your path to homeownership will undoubtedly come with questions and we want to be a trusted resource to help consumers build their financial knowledge. Start building your knowledge now by joining Experian’s free #CreditChat every Wednesday or exploring our Ask Experian blog. Small, consistent learning adds up. Seek trusted guidance You don’t have to figure everything out alone. Nonprofit organizations like HomeFree-USA offer education and personalized support for renters pursuing homeownership. Through the Experian CreditCenter, we’ve partnered with HomeFree-USA to provide free tools tailored to your financial journey. Your bank or credit union likely also has a dedicated resource to help you better understand your homebuyer readiness. Utilize that resource! You can take steps today If I could go back and give my younger, renter-self advice, I’d tell her this: don’t wait to start preparing. Even small actions like checking your credit report, learning about the mortgage process, or making sure your rent payments count, can bring you closer to homeownership. The journey might feel overwhelming at times, but remember, you’re not alone. At Experian, we’re here to provide the resources and support you need to help turn the dream of owning a home into reality. [1] Results will vary. Not all payments are boost-eligible. Some users may not receive an improved score or approval odds. Not all lenders use Experian credit files, and not all lenders use scores impacted by Experian Boost®.

Experian is evolving — and it’s not just a shift in how we show up to consumers, it’s a transformation in how we think about our role in people’s lives. We’re entering a new era, and I want to share what that means for us and the millions of consumers we serve. For years, we’ve been known as a credit bureau. And while that legacy is something to be proud of, it’s only part of our story. Today, we are so much more. Experian delivers a robust consumer financial platform that empowers people to take control of their financial lives and realize their financial dreams. Meet Experian, your BFF We’ve built tools that help people compare auto insurance[i], potentially lower their bills[ii], find the right credit cards, and make smarter financial decisions. But here’s the challenge: many consumers might not know the full extent of what we offer and how we can help them. That’s why we’re launching a bold new brand campaign that brings our mission of Financial Power to All™ to life in a different way. In a multi-dimensional campaign, actor Sam Richardson steps into the role of a consumer’s Big Financial Friend or “BFF,” a larger-than-life character who helps people navigate their financial journeys. With this new campaign – Experian’s first brand re-do since 2016 – we are bringing fresh creative and messaging to consumers to create more awareness about how Experian has their back and can help them throughout their financial lives. It’s important for consumers to have a knowledgeable financial partner they can rely on as they navigate their financial journeys, and we want to be their “BFF” no matter where they are on that journey. We know that many people are facing financial uncertainty right now, like rising costs, economic volatility, and growing anxiety about the future. That’s why our mission matters more than ever. Financial Power to All™ isn’t a tagline. It’s a commitment  that we will continue to build tools, share knowledge, and create access for everyone, no matter where they are in their financial journey. We have the data, the technology, and the people to make a real difference. This campaign is just the beginning. See our first commercial below: [i] Results will vary and some may not see savings. Average savings of $1,137 per year for customers who switched multiple policies and saved with Experian from Jan. 1, 2022 to Mar. 31, 2024. Savings based on customers’ self-reported prior premium. [ii] Results will vary. Not all subscriptions are eligible, savings are not guaranteed, and some may not see savings. Experian members for whom Experian canceled at least one subscription averaged $270/year of anticipated savings. Available with eligible paid memberships and requires connecting payment account(s) to Experian account.