NON-TRADITIONAL DATA:
BOOSTING CREDIT SCORES IN THE USA
How we are helping
Our solutions like Experian Go, Experian Boost and Cashflow Attributes are helping more people access mainstream credit by including non-traditional data in their credit profiles.
The challenge
- Nearly 106 million US consumers can’t access mainstream credit because their financial profile is too thin to be scoreable or their credit score is too low.
- 28 million are ‘credit invisible’ with no verifiable identity or credit profile at all.
- Unable to access mainstream credit at fair and affordable rates, they can face higher interest rates or pay a premium to access essential services.
- They may be forced to turn to unregulated lenders for loans.
Our solution
Our groundbreaking solutions help people build up their credit history by using data that is not traditionally used in credit reports. This includes positive data about on-time payments of utilities or other bills.
Experian Go empowers ‘credit invisibles’ to create their own Experian credit report in just a few minutes. All they need is their government-issued ID, Social Security number and a ‘selfie’ to authenticate their identify.
With Experian Boost, consumers can give us permission to connect to their online banking accounts to identify payments for rent, insurance, streaming services, utilities and telecoms. They can then choose whether they want to add these to their Experian credit file to instantly update their FICO® Score.
We found that 71% of US consumers are willing to share their banking information if it increases their chances of approval for credit. Our Cashflow Attributes tool for lenders uses depersonalised transaction information from consumers’ bank accounts (with their permission) to provide insights on cash flow.
Combined with traditional credit report data, insights from non-traditional data give lenders a more detailed view of a consumer’s financial health so they can offer credit at a fair and affordable rate.
Impact
- Around 280,000 ‘credit invisibles’ in the USA have established a credit profile in just minutes using Experian Go since launch in 2022
- 17+ million US consumers have connected their accounts to use Experian Boost or personal financial management tools
- 46% of US consumers who were previously not scoreable have got a credit score with Experian Boost
- Over 70% using Boost have seen an instant increase in their FICO® Score since launch in 2019
- Experian Boost and Experian Go recognised as World Changing Ideas in the Fast Company Awards