3/31/2023
Experian is one of the largest credit bureaus in the United States and the world. Its main function is to collect financial information from individuals and companies to provide credit reports, such as credit scores, to financial institutions and other companies that request them.
If you want to know more about Experian, how it works and what it offers in the United States, here is a summary.
What is Experian?
This multinational company is headquartered in Dublin, is present in 37 countries and has offices in Brazil, the United States and the United Kingdom.
As a credit reporting firm, it is dedicated to collecting the financial behavior of consumers and businesses. This is condensed into a credit report and a score that can be consulted online.
Experian has a database of more than one billion people/businesses of which 235 million are U.S. consumers and 25 million are U.S. businesses.
In addition to being one of the largest credit bureaus, this agency is also part of the FTSE 100 Index and the London Stock Exchange.
Experian Credit Report and Credit Score
There are several reasons to consult the Experian database. The most common are to get a copy of your credit report, check how your credit score is, and check if there are any errors in your file. You can do this for free once a year and it lets you know if you have been a victim of identity theft.
The credit report from this company can include a variety of information about you and your financial history. In principle, it contains your personal data:
- Date of birth
- Social Security number
- Current and past addresses
- Contact information
It also includes accounts related to credit cards, personal loans, mortgages, and credit inquiries from you and others.
What does Experian do with your data?
Experian's basic function is none other than to collect, update and store credit information for your reference. This data is sold to creditors, lenders and individuals as a credit report. This file looks different from Equifax and TransUnion because the sources vary for each bureau.
Experian data can be said to help financial institutions and lenders make informed decisions based on credit risk. That is, the report shows them what your financial behavior has been like during a specific period and reveals whether you pay on time, have fallen behind on a payment or have been in bankruptcy.
There are a wide variety of entities and businesses that are interested in checking your credit information before doing business with you. These may be utility companies, banks, insurers, landlords, employers or telephone/cable providers.
In any case, this information is protected and you must give your consent for it to be reviewed.
How does it get your financial information?
Like other bureaus, Experian receives information from banks, mortgage firms, credit card issuers, auto finance companies and more.
Most of the data it accumulates is data you've already provided to your creditors. Any additional data may come from public debt records, such as judgments or housing disputes.
Among the details you'll see in your report are the following:
- Creditors.
- Payment history.
- Credit or loan limits.
- Account opening and closing dates.
- Account ownership (individual, joint or co-signer).
- Types of accounts you have, such as mortgages, personal loans, credit cards, etc.
- Credit inquiries, which can be soft, such as pre-approved card offers, or hard inquiries, such as auto loans or mortgages.
In your file, there are also public records for lawsuits or collections. It may be a civil judgment, tax liens or bankruptcy. The duration of this information varies from state to state, but usually remains for a certain amount of time:
- Civil judgment: 7 years
- Tax liens paid: 7 years
- Bankruptcy voluntarily discharged: 7 years
- Chapter 7, 11 or 12 bankruptcy: 10 years
- Chapter 13 bankruptcy - 10 years
- Unpaid tax liens: 10 years
Some additional services offered by Experian
In addition to credit history and credit scoring, Experian has other services for consumers and businesses:
Identity Theft Protection and Alert.
Through a fraud alert notification, potential creditors are alerted to verify your information before extending credit in your name. In this way, they can counteract any identity theft attempts.
Financial counseling/education
Maintaining a good credit score is essential to healthy finances and purchasing power. That's why Experian offers a variety of educational resources on its website for you to take note and learn how to be more responsible with your credit use.
Credit freeze
Freezing your file allows you to control how this bureau sells your information. In essence, it 'locks' your data until you give the company permission to use it. It can be an effective way to counteract identity theft because it disables access to your file.
English: ¿Qué es Experian y qué servicios ofrece en Estados Unidos?