Legislation

There’s no question the COVID-19 pandemic is contributing to a unique 2020 holiday season, but there are consistent truths that remain when it comes to the holidays and personal finance. While the season is known for being merry and bright, sadly, financial challenges and stress are equally common for many this time of year.   According to our latest holiday spending survey, 60% of consumers feel stressed about their finances during the holiday season and half feel the extra expense of the holidays makes them hard to enjoy. More than half (52%) say COVID-19 has caused credit or financial barriers which are preventing them from doing their shopping the way they had planned. At the same time, 62% agree holiday shopping puts a strain on their finances.   In an effort to alleviate some of the financial stress some may be facing, I wanted to share three ways you can protect your financial health this holiday season and prepare for a financially healthy new year:    Start with a budget and a plan.   It’s easy to lose track of spending and take on unexpected debt during the holidays, which is why creating a budget is an important first step to protect your financial health. Experian research shows the average American plans to spend $775 on holiday gifts this season, but your holiday budget will depend on your unique financial situation. Outline how much you can realistically afford to spend and try to factor in expenses that are sometimes overlooked, which can be a challenge. In fact, our research found four out of five consumers often run into unexpected expenses they hadn’t planned for, including buying unexpected gifts (25%), gift wrapping supplies (25%) and mailing costs for sending gifts (21%).   Once you’ve outlined your budget, creating a plan for who you need to shop for and where you’re going to shop can be a helpful next step. Our survey showed 62% of consumers plan to shop more online this year due to COVID-19. If you’re planning to do more shopping from the comfort of your home this year too, tracking online sales and promotions can help you save money, and factoring in shipping costs can help keep your holiday budget on track.   Setting a budget and sticking to it, and having a shopping plan to avoid impulse buying will help keep you from falling victim to the pressure of overspending around the holidays.    Use credit as a financial tool.  Over half of shoppers say they will use credit cards and not cash when holiday shopping. This is an 8% increase from 2019. While using credit wisely is important all year, this is especially true around the holidays. The key is strategic use of credit – whether using a card that provides low interest, rewards points, or cash back – to improve the shopping experience and stretch your dollars.   Over a quarter of people say they plan to open a new credit card for the holiday season, which is a 5% increase year-over-year. The top reasons for wanting to open a new card include seeking a promotional no annual percentage rate (APR) credit card, wanting to get a retail store discount, and maximizing spending by getting a card with cashback rewards.   If you’re considering applying for a new credit card, improving your credit score can help you take advantage of the best credit offers this holiday season. Experian Boost allows you to get credit for paying your telecommunications, cell phone, utility bills, and streaming services payments on time. More than 4.9 million consumers have connected to the service since March of 2019 and about 61% of those who use Experian Boost see their scores improve.   When you’re ready to explore credit card options, Experian’s free Credit Match program can help you find personalized credit card offers based on your unique credit history.   Remember, credit is a financial tool, debt is a financial problem. Debt you can’t repay will certainly bring down one’s holiday spirit. If you don’t have a plan for paying off your credit card, using credit may not be a good idea.   Protect your identity.   The holidays may be the riskiest time of the year when it comes to identity theft and credit fraud.  Identity thieves of all sorts are aware that consumers spend significantly more during the holiday season. While many of us are hunting or scrolling for the perfect gifts for friends and family, fraudsters are hard at work too. The number of consumers surveyed who have been identity theft victims during past holiday shopping seasons jumped to 24% from 12% in 2019. The holidays are always a ripe time for cybercriminals with the increased online traffic and this is especially true against the backdrop of COVID-19.   To protect yourself from identity theft while shopping online, avoid using public WiFi networks, create strong passwords for your online accounts, and only shop on secure websites you are familiar with. If you are shopping at a store, be sure to cover your credit card information when you enter it, or your personal information if you are applying at the point of sale. Shoulder surfers can use their phones to take a quick photo or video to steal your identity. Also avoid leaving your purse or wallet, or any documents in your car. Identity thieves stalk parking lots looking for opportunity that is just a broken window away.   Credit cards offer more protection for both online and in-person purchases than your debit card or cash, so consider using credit for your purchases. If fraud occurs, the money is not gone from your checking account and you can file a claim with your card issuer. Pay the balance in full right away to avoid interest charges.  Checking your credit report often can help you spot fraudulent activity. You can get a free credit report from all three bureaus at AnnualCreditReport.com through April 2021. Identity theft monitoring is an easy way to monitor your financial accounts and credit report to identify possible fraud such as a credit card account opened in your name.  While the holidays may look a little different this year when it comes to protecting your financial health the same rules still apply.   For more information about how to protect your credit history in 2020 and beyond, visit www.askexperian.com or join our weekly CreditChat every Wednesday on Twitter at noon PST/3 p.m. EST.  

I was recently invited to a panel discussion as a part of Money 20/20 titled Do Credit Scores Still Matter? Closing the Chasm through Data and Innovation with Lauryn Nwankpa, Head of Social Impact at Dave and Jay Moon, General Manager of Credit at Credit Sesame. We discussed how important data and innovation are right now to ensure that consumers get access to credit that they need.   As the largest credit bureau in the country, and in service of our mission to be the consumers’ bureau, we at Experian have a responsibility both to consumers seeking credit and to lenders who seek to assess the risk that a loan applicant represents.  As part of this, we’ll continue to extract value from the data that lenders are used to getting from us and we innovate by providing new forms of data that can help the many Americans who either face barriers or sometimes pay more for credit because of a lack of credit history or having a credit file that’s too thin.   I’m especially passionate about this as I myself was an immigrant and a thin-file customer at one point. When I came to this country, it was incredibly hard for me to develop a credit profile that I felt accurately reflected my financial situation and the (lack of) risk that I, as a borrower, would represent. But I was lucky as my first lender at the time was patient, just as I needed to be. They spent months seeking additional information about my situation, eventually enough to extend a firm offer of credit.  It is not only immigrants who may face this or similar challenges. The impact of COVID-19 has created a difficult economic reality for many Americans. At Experian, we’re dedicated to having a culture of continuous innovation, from the way we work to the solutions we create to help consumers on the road to recovery.  Especially during times of economic uncertainty, finding innovative means to effectively assess the creditworthiness of these consumers is critical.   That’s exactly what we focus on at Experian in order to help consumers gain financial access and stability.  Alternative data plays a critical role in achieving this. We’re finding new ways to use consumer-permissioned and alternative credit data in the credit scoring process, which can help lenders identify consumers who are excluded from the traditional credit ecosystem, but who can fulfill their financial obligations.  I’ve seen firsthand how our data and technology can help transform the way businesses operate and have spoken to many consumers who leveraged our innovative services to help them thrive in society.  Consumers want to be in the driver’s seat of their credit journey and we’re seeing a greater openness to providing data, which in turn enables lenders to make more informed decisions. This change is disrupting the status quo. Experian Boost is a great example of this. It’s a free and first-of-its-kind financial tool that empowers consumers to add positive telecom, utility and Netflix payment histories directly into their Experian credit file for an opportunity to instantly increase their FICO Score and access quality credit. More than 2.5 million have seen their scores improve with Experian Boost.  So, do credit scores still matter? My answer is that credit reports are more relevant than ever. They matter more than the score alone as they detail a consumer’s financial track record and deliver a historical view of how a consumer is managing and repaying debt over time. This information helps lenders determine who can fulfill their financial obligations and ensures consumers continue to have access to credit so I don’t believe credit reports are going anywhere.   As we navigate the road to recovery, it will be critical that all of us in the financial ecosystem work together to safeguard consumers and to maintain the integrity and openness of the credit market.  The credit report, augmented by consumer-consented and alternative data, is a foundational pillar to achieve both of those objectives. 

If you’re anything like me, you’re likely spending much more time online these days. From online shopping to grocery and food delivery and thumbing through our social media feeds – the COVID-19 pandemic has many of us spending more time in our homes and “plugged in” than ever before.   The COVID-19 pandemic has also contributed to an increase in fraud activity. According to the FTC from January to early October 2020, consumers have reported losing a total of more than $156 million to COVID-19-related fraud.  At Experian, we are committed to protecting consumer financial health during the pandemic and beyond. Educating consumers about how to protect their personal information online is key to supporting this effort.   As we prepare to enter the holiday season in our virtual world and in honor of National Cybersecurity Awareness Month, I’d like to share a few ways you can protect your financial health online:   Shop Safely Online   As I mentioned, the amount of shopping you do online has likely increased significantly since the start of the COVID-19 pandemic. This is a trend that’s expected to continue. In fact, according to a recent report from Experian, as many as half of consumers globally expect their spending online to increase in the next 12 months. Practicing safe online shopping habits is always important. This is especially true now.   While you may not be spending as much time in airports or your local coffee shops, it is a good practice to avoiding using your financial information to make purchases online if you are on a public WiFi network. Without a password protected network, you have a higher risk of fraudsters gaining access to your banking information which could significantly damage your financial health. Using a virtual private network or a VPN can be an added layer of protection when you are entering your financial information online.    Using a credit card to make your online purchases is also a useful way to protect yourself against losses tied to fraudulent charges. According to the federal Fair Credit Billing Act if your credit card — the physical card — is stolen and used to make fraudulent purchases, your issuer can hold you responsible for up to $50 in fraudulent charges. However, if you report the card stolen before any fraudulent charges are made, you have no liability. If your card number is stolen but you’re still in possession of the card, you’re not responsible for any fraudulent charges.  Avoid Falling for Phishing Emails   Phishing is an attempt to obtain sensitive information for criminal and fraudulent purposes through email. Against the backdrop of the pandemic, there have been increased reports of phishing attempts around COVID-19 testing, vaccines, treatments and cures. Keep in mind that generally if something sounds too good to be true, it likely is. To prevent damage to your identity or your financial health avoid opening any suspected phishing emails and never click on included links.   While phishing emails are getting more sophisticated, there are a few clues that can help you identify one in your inbox.  If you receive a suspicious looking email, look at the sender name or email address. Phishing emails tend to have suspicious email addresses that are often different than the name of the sender (it could be anything from a slight misspelling of the senders name to an email address that is completely different). It’s also common for phishing emails to use urgent language and include unusual attachments or links.   While reputable organizations may sometimes ask for personal information over email, pay close attention to the details of the email before sharing any of your information. It may be a better idea to call the requesting organization and find out if there is a more secure way to do whatever it is they may be requesting. Always think twice before clicking any links. When in doubt, type the organization’s name into an internet search and visit the site directly.  Protect Your Passwords  This is a basic point, but one that is commonly overlooked. Using complex passwords can be your first line of defense against potential cyber threats. I know it can be challenging but avoid using the same password for multiple online accounts. When you’re creating unique passwords, it’s best to include a minimum of eight characters with a variety of letters, numbers and symbols.  Keeping track of your passwords for your online bank accounts, email, social media, shopping apps and online medical portals can be a lot to manage. A password manager subscription can be a convenient and secure way to manage your passwords. They are affordable and more secure than writing down all your passwords or using the same password for multiple accounts.    Avoid Over Sharing on Social Media  Oversharing on social can lead to unwanted implications. For example, fraudsters and criminals can learn a lot about you from the data included in the photos you share online, including where you are and when you are there. Avoid photos of items that can be used to determine more information about you such as your license plate or the front of your home. Keep in mind, that while it may be tempting to share photos of your family vacations on your social networks, this may also tell unwanted visitors that you are not home.     Use tools to Combat Fraudsters   Checking your credit report regularly can help you stay informed about potentially fraudulent activity. In an effort to encourage consumers to monitor and understand the information in their credit reports, Experian joined forces with the other U.S. credit reporting agencies, to offer free weekly credit reports to all Americans through April 2021 via www.annualcredreport.com.      Credit monitoring services can help you spot potential fraud early. Experian offers free and paid services that provide daily credit monitoring alerts for things like new inquiries and accounts opened in your name, changes to your personal information and suspicious activity detected on your Experian credit report.   You can find more National Cybersecurity Awareness Month resources to protect yourself online here.  

Today’s customer needs are ever-evolving and businesses both large and small are reshaping the customer journey at an unprecedented pace. Businesses are looking for solutions that are secure, easily scalable to meet emerging needs and changes in demand, and seamlessly upgrade to avoid getting stuck on outdated software. To enable organisations to keep up with the pace of change, Experian has developed a new set of cloud-based solutions designed for companies that seek to automate decisions across an increasingly complex customer journey. The new release includes both pre-configured solutions for organizations that prefer standard ‘out-of-the-box’ applications and highly configurable solutions for clients with sophisticated, decision-driven business processes. We want to offer more businesses access to Experian’s award-winning decisioning platform. Pre-configured SaaS solutions bring Experian’s rich data, analytics, decisioning capabilities, and expertise in credit risk to new markets, while we are able to continue to serve our largest enterprise clients with a full range of decisioning capabilities. With both options, businesses can benefit from the entire PowerCurve platform or select custom capabilities that address specific needs. PowerCurve solutions available on the cloud include: PowerCurve Customer Acquisition – an ‘out-of-the-box’ solution designed to help businesses quickly acquire high-value customers. PowerCurve Eligibility Check – an ‘out-of-the-box’ solution designed to help lenders automatically assess which prospects are the right fit for their credit products. PowerCurve Strategy Management – a highly customizable cloud-based solution that helps businesses drive higher performance with more insightful and dynamic decisions. PowerCurve Originations - a highly customizable cloud-based solution that helps businesses acquire more profitable customers through adaptive and targeted approaches. PowerCurve, which is used by 2,000 companies across the globe, is a platform to help businesses make analytically driven decisions and adopt the most effective decision management strategies across the entire Customer Life Cycle. Highly configurable PowerCurve solutions are available on the cloud in all regions and cloud-based; pre-configured solutions vary by market.  

In the midst of COVID-19, we’ve seen the digital transformation accelerate at a rapid pace—and it’s likely to continue in the months and years ahead. According to McKinsey & Company’s COVID-19 Consumer Pulse survey, most business types have seen more than 10 percent growth in their online customer base during the pandemic and many consumers plan to continue shopping online when store locations reopen. While the shift to digital began well before COVID-19, what does the sudden spike mean for marketers?   In short, it means digital campaigns have become mission critical—and subsequently, data has become more important than ever. People are more than just their interactions with your brand. They consume information and engage other brands from multiple devices and channels, resulting in hundreds of digital touchpoints. You need to use data to connect these touchpoints to better understand your audiences’ needs, inform your messaging, optimize digital campaigns, and most importantly, build and establish a human connection.   Businesses have troves and troves of data, but oftentimes struggle to generate insights. You need to find the right partner to help manage the data and unlock its potential. To help, Forrester recently released its Now Tech: Consumer Data Marketing Services, Q3 2020 report that provides an overview of 22 consumer data marketing providers that can help you leverage your first-party data and create a more comprehensive view of customers and prospects—Experian is proud to be included in the list.   Finding the right partner is important; you have to remember data is a privilege and you need a partner that can help you provide value to your customers—otherwise, trust can quickly erode. And without trust, data and your marketing campaigns become obsolete. Identify what matters most to you.   Do you need to enrich your current database? Build look-a-like audiences?  Do you need to connect digital and offline identities?  Do you need to activate your data?  With a strong foundation in data and identity resolution, Experian is committed to helping you learn more about your customers and help them navigate their unique circumstances. Experian's ConsumerViewSM database includes attributes on more than 300 million consumers and 126 million households, including demographic data, purchasing behavior, and lifestyle information. In addition, our MarketingConnectSM platform eliminates the need for disparate solutions and enables marketers to access and manage offline and online customer identity attributes, such as MAIDs and IPs.   Now, more than ever, consumers want to be heard. You need a data-driven strategy to meet that expectation. The right partner can help you expand what you already know about your customers and allow you to communicate with them effectively and address their most pressing needs.   Learn more about how Experian can help you maximize the potential of your data.  

Experian is a proud member of the Better Identity Coalition, which is committed to working alongside policymakers to improve digital security, identity verification, privacy and convenience for everyone. Together, we’re seeking innovative ways to empower Americans to take control of their identities and conduct online business securely.   On September 11, 2020, a bipartisan group of House members led by Congressman Bill Foster, introduced the “Improving Digital Identity Act of 2020” to modernize and digitize our essential government identity infrastructure.  Through the Better Identity Coalition, Experian supports this bill and the steps it’s taking to help improve digital identity, security and privacy for Americans.    As a result of the impact of the COVID-19 pandemic, consumers and businesses have quickly adapted to doing nearly everything digitally, but most government-issued identity credentials, such as drivers’ licenses and passports, were not created to be verified online. The “Improving Digital Identity Act” creates a comprehensive approach across federal, state and local government to address critical shortcomings in identity tools that today make it easy for fraudsters to prey on Americans.  The bill creates a framework of standards that new identity solutions should follow to ensure privacy. The bill also allows for federal grants to be given to states to jumpstart modernization of the systems that provide driver’s licenses or other types of credentials to enable digital identity verification, in accordance with the NIST framework. It’s important that the bill gets passed to bring the United States up to speed on digital identity and help fix government-issued identity problems.  In addition to supporting bills like the “Improving Digital Identity Act of 2020,” Experian is working hard to develop new innovations to make digital commerce safer for consumers and businesses. Our most recent innovation, Sure Profile makes us the first company with an offering to fight synthetic identity fraud that’s integrated into the credit profile with market-leading assurance. In fact, we are so confident in our solution that we’ll share in loan losses on assured profiles if we get it wrong. Experian is also proud to be the only credit bureau in the initial rollout of the Social Security Administration’s new electronic Consent Based Social Security Verification service. Our inclusion ensures our clients have the tools to more easily detect online fraud while also better recognizing legitimate consumers.       

While consumers throughout the U.S. continue to manage the impacts of COVID-19, aside from health and wellbeing, one of the most salient concerns has been around the health of consumers’ finances. With many falling under some form of stay-at-home order since the onset of the pandemic, local economies have been jolted and some consumers may be feeling the financial impacts.   As part of Experian’s commitment to improve the financial health of Americans and educate on debt and credit, we focused our research efforts to analyze internal and external data to show how consumer finances have changed in recent months.    Through our initial review, we found that certain measures of consumer finances, on average, had improved since the onset of the pandemic. Whether due to the unprecedented government stimulus, or changes in spending, consumers saw a reduction in average debt and increased average credit scores. Though the data is rapidly changing and the true financial implications of the pandemic may be partially obscured by governmental stimulus efforts, we wanted to take a snapshot and highlight how consumers are faring in the moment. By providing these insights, we can use data for good, helping organizations, experts, and others apply learnings that may positively guide efforts in the future for the benefit of all.     Our Main Findings from January 2020 to May 2020:   The average VantageScore has increased by 5 points   Total average consumer debt total declined by 1%   Average consumer credit card balances have decreased by 14%   The average credit utilization ratio has dropped 5 percentage points   These findings offer an important snapshot of consumers five-months into the COVID-19 pandemic stay-at-home orders. Though initially positive, we want to keep an eye on these trends as they could change over time as government policies and stimulus efforts are amended to adjust to future conditions. To continue providing relevant insights on prevailing trends in consumer finances, we will work to maintain updated research content as the data become available.     You can find links to our most recent research below, and check back at Experian.com/research for updated articles over the coming weeks.   Our Most Recent Research Articles:   COVID-19 Impact: Changes to Consumer Debt and Credit  COVID-19: Consumers Reduce Overall Debt During Pandemic  COVID-19: Credit Utilization Drops as Consumers Cut Spending 

Today kicks off Asian Pacific American Heritage Month. The Experian Asian American Employee Resource Group (ERG) is proud to recognize this special month by sharing how Experian is supporting a national campaign to address the adversity facing some of our most at-risk communities right now. Experian has joined ten non-profits and more than 80 companies from across industries and sectors nationally to support the #AscendTogether action agenda. It includes promoting inclusion, raising awareness of vulnerable groups, denouncing bias, supporting frontline healthcare workers, COVID-19 victims and families, and donating funds and resources to support vulnerable populations and impacted businesses. Led by Pan-Asian leadership nonprofit Ascend, this effort is designed to bring about unity at a time when fear about COVID-19 has led to rise of intolerance and racist acts, particularly against the Asian and Asian-American community. Experian is proud to step up as a leader in our industry to participate in this effort. As executive co-sponsors of Experian’s Asian American ERG, we hope you will join us in our efforts to be a champion for diverse communities, especially during this time. You can learn more about #AscendTogether here. Written by: Dacy Yee, Chief Customer Officer ECS Direct-to-Consumer and Jimmy Cheung, Senior Vice President of Technology and Engineering

For the past several years, Experian has been on a journey to help drive financial inclusion for millions of people around the world. This has required significant changes in how we operate, who we partner with, and the products and solutions we offer —and with those changes comes a renewed sense of purpose. What we do and the actions we take have the potential to improve lives.  We are actively seeking out unresolved problems and creating products and technologies that will help transform the way businesses operate and consumers thrive in today’s society. But we know we can’t do it alone. That’s why over the last year, we have built out an entire team of account executives and other support staff that are fully dedicated to developing and supporting partnerships with leading fintech companies. We’ve made significant strides that will help us pave the way for the next generation of lending, while improving the financial health of more people around the world. Earlier this week, I attended the FinovateSpring conference in San Francisco to speak with fintechs and financial institutions about ways to put financial health at the center of an organization’s plans to build trust, reach new customers and ultimately grow business. We are developing platforms that are designed to play to the strengths of fintechs and disrupt the industry. In the past, we have looked at unresolved problems and asked ‘why?’ Today, with our fintech partners, we look at potential solutions to these unresolved challenges and say, ‘why not.’ As part of our concentration on fintech, Experian has made significant investments in alternative data, such as the game-changing Experian Boost platform, which was launched just two months ago and is already reshaping the way consumers gain access to credit. Since we launched Experian Boost, consumers across America have instantly increased their credit score by sharing their bill payment history for things like utilities, mobile phones and cable TV payments – payments which had never been factored into a credit score before. And, yes, this platform came to fruition as a result of a fintech partnership. We have partnered with fintechs in other powerful ways, too. Our new Ascend Analytical Sandbox – a first-of-its-kind data and analytics platform - gives companies instant access to more than 17 years of depersonalized credit data on more than 220 million U.S. consumers. This creates better opportunities for consumers by allowing our clients to provide more tailored solutions. It’s a great example of the power of analytics and we’re very proud of it. During our time at Finovate, we were able to engage in meaningful conversations with fintech leaders who were united in our goal of helping more consumers access the financial services they need. We’re more inspired than ever before to continue to build and explore strategic partnerships that will ultimately improve the lives of American consumers.