Frequently Asked Questions
Addressing questions that matter to you
Credit Reporting Industry
The credit ecosystem powers the lending process, commerce and our economy, enabling consumers to access reasonably priced credit and financial resources to get the things they need to live a productive life. And as the largest of the three national credit reporting agencies, Experian sits at the center of that ecosystem.
While Experian and the other national credit reporting agencies do not make lending decisions, our role is to provide banks, mortgage lenders, credit card issuers, credit unions, online lenders and other creditors with accurate and complete information about consumers’ and small businesses’ credit activity and payment history. Rather than relying on a storeowner’s or a bank’s personal judgement and the biases that could accompany it, this detailed information enables creditors to assess consumers’ and small businesses’ ability to repay a loan and extend credit. It ensures there is transparency and objectivity in the credit system.
Although a credit report is only one element of the lending institution’s decision-making process, it can affect if a person can access credit, as well as how much they pay for it. To that end, Experian has long advocated for the use of new sources of data to augment and enhance current credit information to help lenders effectively assess a consumer’s financial situation, particularly those who are credit invisible or have limited credit histories. It’s our mission to drive financial inclusion and facilitate access to fair and affordable credit for all consumers.
While Experian and the other national credit reporting agencies do not make lending decisions, our role is to provide banks, mortgage lenders, credit card issuers, credit unions, online lenders and other creditors with accurate and complete information about consumers’ and small businesses’ credit activity and payment history. Rather than relying on a storeowner’s or a bank’s personal judgement and the biases that could accompany it, this detailed information enables creditors to assess consumers’ and small businesses’ ability to repay a loan and extend credit. It ensures there is transparency and objectivity in the credit system.
Although a credit report is only one element of the lending institution’s decision-making process, it can affect if a person can access credit, as well as how much they pay for it. To that end, Experian has long advocated for the use of new sources of data to augment and enhance current credit history information to help lenders effectively assess a consumer’s financial situation, particularly those who are credit invisible or have limited credit histories. It’s our mission to drive financial inclusion and facilitate access to fair and affordable credit for all consumers.
Data accuracy is foundational to Experian, and we are committed to continuously improving the accuracy of credit reports. In fact, we’ve put in place improvement programs, which have increased our accuracy level, and we are working to drive this higher.
First, we employ a large, dedicated data quality team and apply a rigorous vetting process on data that lenders send to us, so we can detect conflicts and potential errors before we add them to a consumer’s credit file. Second, we leverage sophisticated analytics to identify and correct potential errors that may have a material impact on a consumer’s credit score and analyze the underlying processes that lead to these errors so they can be quickly remediated. Third, we removed civil judgements and tax liens from consumer credit files and delayed the reporting of medical debt for 180 days.
Consumers should do three simple things to help improve the accuracy of credit reports. First, consumers must provide correct and consistent information on credit applications in order to lower the chances that incorrect identifying information is associated with an account. Second, consumers should review their credit report frequently to ensure that the information is accurate and complete. Ideally, the review should occur prior to applying for credit. And third, consumers should review monthly billing statements from their credit grantors to ensure accuracy of purchases and payment amounts.
Under the Fair Credit Reporting Act (FCRA), when a consumer disputes a potential error on their credit report, credit reporting agencies are required to investigate and resolve disputes within 30 or 45 days, depending on the situation. If the investigation is not completed within the time allotted by law, we will update the item as you have requested or delete the information.
Because the Equal Credit Opportunity Act (ECOA) forbids lenders from making credit eligibility decisions based upon race, ethnicity, gender and age, we ensure that the credit reporting data we provide to lenders is blind to these factors. However, we recognize that historical credit, wealth and health inequities have contributed to financial disparities and the underrepresentation of marginalized communities in the current credit system.
It’s our mission to drive financial inclusion and improve the financial well-being of all consumers. That’s why Experian is committed to ensuring we find ways to help underserved consumers gain access to fair and affordable credit by assisting them in building their credit profiles, including the use of rental, utilities and telecom payment data. We want to work side-by-side with lenders and consumers to create greater financial access and improve financial equity.
Every consumer deserves access to fair and affordable credit, and it’s our mission to drive financial inclusion. To help consumers from underserved and low-income communities build a credit file and access financial resources, Experian has long supported the use of new sources of data to augment and enhance current credit information to help lenders effectively assess a consumer’s financial situation. We have been a pioneer in the use of rental, utilities and telecom payment data to broaden credit access for consumers.
In fact, more than two years ago, we created Experian Boost, which was a first-of-its-kind service, designed to help consumers instantly improve their FICO® Score by giving them credit for on-time utility, telecom and streaming service payments. To date, more than 7 million consumers have used Experian Boost and added over 50 million cumulative points to FICO Scores across the US.
In addition, consumer education and preparedness are core tenets for Experian. Through Experian’s United for Financial Health initiative, we want to empower vulnerable people and communities to improve their financial well-being through education and action. We’ve also long provided consumers with credit management best practices and free credit monitoring services to help them build and protect their credit profile.
Many lenders, including banks, mortgage lenders and credit card issuers, leverage credit history information and other data elements to assess whether a potential borrower will repay a loan as agreed. However, we recognize that that historical credit, wealth and health inequities have contributed to financial disparities and the underrepresentation of underserved communities in the current credit system.
We are working side-by-side with lenders and consumers to create greater financial access and improve financial equity. To that extent, we are committed to helping lenders identify consumers who may have been unfairly excluded from the credit ecosystem, but who can fulfill their financial obligations and pay responsibly. This includes the use of rental, utilities and telecom payment data to help expand credit access for consumers. The inclusion of additional accurate credit information can help paint a more holistic picture of whether a consumer will repay a loan as agreed, especially those that are credit invisible or have limited credit histories.
Many factors from a consumer’s credit file go into the creation of credit scores and different scoring models weigh these factors differently—all in an effort to help lenders assess whether a consumer is likely to repay a loan as agreed. While different scoring models weigh different factors differently, they use the same underlying data—which is why it’s important for consumers to focus on building a good credit history.
While the information used for credit histories and scores is an effective means for assessing a consumer’s likelihood of paying back the loan as agreed, we know there is a large percentage of people who are excluded from the credit economy because they lack a credit history. Experian is a pioneer in using new sources of data, such as rental, utilities and telecom payment data, to augment and enhance current credit data to help lenders effectively assess a consumer’s financial situation.
COVID-19
Unexpected situations, such as COVID-19, may adversely affect a consumer’s ability to make timely payments and meet debt obligations. At Experian, we have an unwavering commitment to help consumers manage through this unprecedented period. We want to empower consumers to improve their financial well-being through education and action. That includes:
- Offering consumers access to a free credit report, FICO Score and credit monitoring through our CreditWorks product, which also provides access to Experian Boost, a financial tool that has helped millions of consumers increase their credit score.
- Accelerating and enhancing our financial education programming with the goal of helping consumers maintain good credit and gain access to the financial services they need.
- Publishing a dedicated blog, “COVID-19 and Your Credit Report,” with ongoing and updated information pertaining to how COVID-19 may impact consumers’ creditworthiness and—ultimately—what people should do to preserve it. Consumers can also explore immediate and evolving resources on our ASK Experian COVID-19 Updates page.
- Equipping the employee volunteers of our Education Ambassador program with resources to help consumers and their communities better manage credit and protect themselves from fraud and identity theft—particularly over the coming months.
In addition, along with the other national credit reporting agencies, we are continuing to offer free weekly credit reports to all Americans through April 20, 2022 via AnnualCreditReport.com.
If a consumer’s deferment or forbearance period is coming to an end and they believe they will fall behind or have difficulty with payment obligations, we urge consumers to proactively contact their lenders as soon as possible. Early communication is key, as lenders may have several options available to consumers and can identify an alternative, workable payment solution.
In addition, we recommend consumers check their credit reports regularly to get a complete view of the status of their credit accounts. Through April 20, 2022, all Americans can access their credit reports weekly for free via AnnualCreditReport.com.
Consumers can also enlist the help of a credit counselor. Many credit counseling agencies are non-profit organizations that provide some free services, as well as debt management plans, to help people manage and pay down their debt.
Many consumers experienced financial hardship as a result of COVID-19. Experian analyzed credit and debt trends in the US and found the average credit score reached a record high. Based on data from Q3 2020, the average credit score was 710, up from 703 a year ago. Some of the factors contributing to the improvement in consumer credit, include consumers reducing credit card debt by 14 percent and reducing the average number of accounts reported as late.
While we cannot identify a singular reason for the improvement in consumer credit, the Coronavirus Aid, Relief and Economic Security (CARES) Act, which provided stimulus checks, unemployment benefits and urged lenders to grant accommodations, along with a decrease in consumer spending, provided opportunities for consumers to pay down outstanding debt.
Fraud Prevention
As a trusted industry leader in identity verification and fraud prevention, Experian is committed to helping businesses anticipate future fraud risks and protect consumers’ identities. Our suite of automated fraud prevention and detection tools allow businesses across industries to leverage data and advanced analytics to identify fraud schemes, minimize fraud risk and provide a seamless digital experience.
Data security has always been, and always will be, our highest priority. We constantly strive to provide secure systems and processes that reflect data security best practices to stay ahead of today’s increasingly sophisticated cyber criminals. At Experian, we are constantly updating our fraud strategy and utilizing the latest anti-fraud technologies.
As a trusted industry leader in identity verification and fraud prevention, Experian is committed to helping businesses anticipate future fraud risks and protect consumers’ identities. Our suite of automated fraud prevention and detection tools allow businesses across industries to leverage data and advanced analytics to identify fraud schemes, minimize fraud risk and provide a seamless digital experience.
Data Privacy
Privacy is at the heart of what we do and the way we work. At Experian, we see increased scrutiny and awareness of privacy issues as a positive development because it highlights our differentiated position. We have a strong commitment to transparent and responsible data practices and use, and we strictly comply with the data protection laws in all the countries we operate in and remain vigilant when it comes to data security and integrity.
Unlike some others, Experian has been working with data for many years and has best-in-class processes and procedures in place to make sure we have the highest standards of security and transparency.
At Experian, we are committed to transparent and responsible data practices and use. In fact, we provide consumers with notice and choice regarding how their data is used, and we give people access to the marketing data we maintain about them upon their request. Additionally, we make it easy for consumers to opt-out if they do not want their personal information to be used for marketing solicitations.
For more information, consumers can access Experian’s privacy policy, opt-out forms and marketing data request forms via https://www.experian.com/privacy/index.
Privacy is at the heart of what we do and the way we work. At Experian, we see increased scrutiny and awareness of data issues as a positive development because it highlights Experian’s differentiated position. We strictly comply with the data protection laws in all the countries we operate in and remain vigilant when it comes to data security and integrity. This includes our own commitment to strict compliance regarding ethical and responsible uses of data.