As more and more consumers recover from the recent economic turmoil, they have a driving need to better understand how their credit situations impact their ability to make purchases and obtain services like wireless, cable television, Internet and more. Here at Experian, we recently launched a pilot program through our National Consumer Assistance Center (NCAC) to gauge consumers’ receptiveness to receiving credit education.
A frustrated population
The pilot program involved consumers referred to the NCAC by some of our utility clients. Like many cable, wireless and telecom customers, these people were frustrated about having to pay a security deposit to obtain service. Experian offered them a one-on-one educational session over the phone that included:
- An explanation of the major components of a credit report
- The distinction and relationship between a credit history and a credit score
- Definitions of negative elements on a credit history
Positive outcomes
The results of the pilot program, as measured through exit surveys, were quite positive:
- On a scale of 1 to 5, with 5 being the highest, those who participated in the program scored the service as a 4.9 in terms of being helpful.
- 96% of respondents indicated they are “likely” or “very likely” to act on the knowledge they received and/or change how they use credit.
- Despite still having to pay a deposit, nearly 50% of respondents ultimately felt “positive” or “very positive” about the utility company whose actions led to their being involved in the educational session.
Implications for communications companies
The benefits of offering consumer credit education are far-reaching. Not only can it help you build stronger relationships with current and potential customers, it can also help your customers improve their own credit-worthiness, and thus increase their eligibility for the products you offer and decrease the need for hefty deposits.
Did you know that April is Financial Literacy Month?
In support of Financial Literacy Month, Experian is participating in a number of events with the JumpStart Coalition for Financial Literacy and providing education materials and resources to many different organizations that are conducting financial literacy programs around the country. We are also enhancing our consumer education web site and developing a package of credit education and mentoring services that communications companies can offer to their customers. Check back for more information on that development in future posts.