NA – North America

The COVID-19 pandemic reshaped Americans’ personal and financial lives. If you find yourself in a situation that could make fulfilling your credit card, loan, or mortgage payments challenging, you may be wondering what relief options are available to help navigate these changes.  The good news is there are options if you need financial support during this time. However, it can be difficult to know where to start. The two primary relief avenues are deferment and forbearance. While different in practice, these terms are often used synonymously, even by those within the credit industry.   While similar at first glance, there are significant differences between forbearance and deferment agreements. While both are intended to pause or reduce payments for a certain period, there are variances when it comes to how you must repay the delayed payments.   It’s important to understand how these two options work when speaking with your lender, so you can choose the best path for your personal financial situation. Whichever avenue you take, remember that deferment and forbearance are both temporary measures and shouldn’t be used as permanent solutions.  Pausing Payments with Deferments    You may have seen the term deferment in the news more recently with mortgage relief and student loan deferral options. So, what exactly is deferment? Through this option payments are put on pause and deferred until a later date. This is a longer-term strategy that enables you to pay back your loan over time, when your financial situation puts you in a position to do so responsibly. Interest can sometimes accrue during a deferment period, depending on the type of loan and the lender you’re working with, so it is important to talk with your lender to fully understand your agreement terms.    Periods of deferment vary in length – in some cases lasting as long as your financial situation requires. You should opt for deferment if your financial situation or an unexpected event, such as being let go from your job, creates an undue burden that makes it impractical or impossible to keep up with regular payments.  Temporary Relief with Forbearance    The other option to discuss with your lender is forbearance. Whereas deferment allows you to pay back a loan over time, forbearance is a relief strategy that typically requires the borrower to pay a lump sum and accrued interest at the end of the forbearance period. For example, if you paused payments for five months, at the end of those five months, you would pay your lender the total of paused payments and the accrued interest.   If you’re seeking forbearance for federal student loans, there are two different types of forbearance: mandatory and discretionary. With mandatory forbearance, lenders are required to pause payments if a borrower meets a set of financial criteria that could prevent them from making payments on time. Eligibility for mandatory forbearance includes: enrolment in a medical or dental residency program, payments on your federal student loans being greater than 20% of your total monthly gross income, and other circumstances that could hinder your ability to make payments. Confirm whether you’re eligible with your lender.  Discretionary forbearance means the lender makes the decision at their discretion to put payments in forbearance based on your unique financial situation.   Forbearance is generally a shorter-term option and the avenue to take if you don’t qualify for deferment. Consider forbearance in times of true financial crises, such as an unexpected medical bill, that would temporarily inhibit you from making a monthly payment.  How to Work with Your Lender on Relief Options  While discussing these options with your lender, it is critical to have a full understanding of what the agreement will entail – from interest rates to your timeline for payment – to ensure you’re in the best position to fulfill the agreement with your lenders once your payments resume.

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 

Many of us have turned to streaming services to help us cope during this time of COVID-19. Being able to escape with some good entertainment while still maintaining our social distance is invaluable right now. Television streaming has skyrocketed 85% since March; I’ve certainly contributed to that increase. Now, subscribing to that streaming service can do more than entertain, it can improve a consumer’s financial health. Starting today, Netflix® customers can possibly improve their FICO® Score by adding their positive payment history through Experian Boost. Experian Boost™† is the innovation we launched in 2019 that can help consumers improve their credit score instantly. So far, approximately four million consumers have connected their utility and telecom bills to Experian Boost, leading to more than 29 million points added to FICO® Scores nationwide. This addition makes sense. Experian Boost already allows consumers to receive credit for paying their cable bills, so paying for a video streaming service on time should also help prove creditworthiness. It’s critical that we meet consumers where they are and adapt to help them in their current position, especially during a pandemic. Anticipating and prioritizing consumer needs is our focus and drives our innovation. After all, we’re consumers too. I’m proud of how our team uses their personal experience and their roles at Experian to create opportunity for millions of people to improve their financial health, especially during these uncertain times. Our job is to help consumers, and that doesn’t stop with their credit score. That’s why we’re also launching new free features available to everyone within the CreditWorks Basic and Premium products. The free tools provide personal insights and resources that can help consumers better save money and manage their financial profile. For more information about Experian Boost go to: www.experian.com/Boost. Experian and the Experian trademarks used herein are trademarks or registered trademarks of Experian and its affiliates. The use of any other trade name, copyright, or trademark is for identification and reference purposes only and does not imply any association with the copyright or trademark holder of their product or brand. Other product and company names mentioned herein are the property of their respective owners. †Results may vary. Some may not see improved scores or approval odds. Not all lenders use Experian credit files, and not all lenders use scores impacted by Experian Boost. Credit score calculated based on FICO® Score 8 model. Your lender or insurer may use a different FICO® Score than FICO® Score 8, or another type of credit score altogether. Learn more.

“What does a credit bureau do?” is one of the most common questions I’ve answered throughout the years – both at conferences and cookouts. Admittedly, it can be difficult understanding the different roles of credit bureaus, credit score companies, and lenders. Amid COVID-19, it’s important for us to define our purpose and help guide you toward the right resources for financial help. As the consumers’ bureau, Experian is committed to examining financial questions and helping consumers, businesses, and lenders navigate this transitional fiscal landscape. It’s important for you to know your financial options and how to separate fact from fiction, especially during times of crisis. Here are answers to some of the most common questions about credit. Do credit bureaus make lending decisions? This is one of the rare instances in credit reporting for which there is a simple answer. No, credit bureaus do not make lending decisions. Lenders – such as banks, mortgage companies, credit unions, and credit card issuers – help consumers borrow money and they make the lending decisions. The credit bureaus are responsible for working closely with lenders to provide information that helps them make informed and responsible lending decisions. At Experian, we equip lenders with accurate and complete data about consumers’ and small businesses’ credit activity and payment history, which enables lenders to develop a full picture of a borrower’s financial health. During COVID-19, it is important for there to be open lines of communication between consumers and lenders about upcoming payments and payment plans. Some lenders are offering deferments and other workable accommodations to ensure consumers do not fall behind on their payments. It is important for consumers to contact their lenders to understand what options are available to them. Do credit bureaus control my credit score (and whether it goes up or down)? Credit bureaus, like Experian, do not determine your credit score. Credit scores are calculated based on third-party credit-scoring models, like those developed by FICO or VantageScore Solutions. These models use information from your credit reports, including credit activity sourced from credit bureaus, to calculate a credit score. The scoring models are proprietary to the companies that develop them. In the most fundamental terms, the credit bureaus are responsible for compiling the credit reports. The scoring companies create algorithms that calculate the score. Credit scores reflect the information in your credit report at the moment the credit score is calculated. The scores will change to reflect changes in your credit report. You control how you use credit, so you play an important role in determining whether your scores trend upward or slip downward. If you consistently make good credit decisions, your scores will trend upward over time. Reviewing your credit report helps you manage your credit and gives you a full picture of what lenders see. Monitoring your credit report is as important as reviewing bills and bank statements, as your credit is an integral part of your overall financial health. Additionally, with an increase in phishing and cyberscams as a result of COVID-19, it’s especially important to stay informed about your credit report, so that you can dispute anything you believe may be inaccurate and ensure that there is no evidence of fraud that could impact your score. Are lending decisions based solely on my credit score? No, credit scores are just one factor in lenders’ decision-making process. Lenders consider additional information when making a decision, such as employment status, income and information about a consumer’s assets and liabilities. In the wake of COVID-19, lenders may start to tighten their credit standards – meaning consumers may need a higher score to receive a loan. Because of this, it is important to be proactive and take action to mitigate any potential negative impact on your credit score. If you’re worried you may miss a payment, contact your lender to discuss your options. Through April 2021, Experian has partnered with our peer credit bureaus to offer a weekly free credit score at https://www.annualcreditreport.com/. This additional measure will allow consumers to access their credit reports frequently and talk to their lenders with the most updated information possible. How are credit bureaus working with the government during COVID-19? At Experian, we fully supported the signing of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), which provides relief to Americans through expanded unemployment coverage and by providing grants and loans to small businesses. The CARES Act also provided important guidance to lenders about how to work with consumers affected by COVID-19. Experian is working with lenders to ensure appropriate accommodations are made to protect consumers. Additionally, the credit reporting industry has developed reporting standards for lenders to use during emergency periods, such as COVID-19. These reporting standards allow lenders flexibility when reporting accommodations made to consumers who are experiencing hardships due to the pandemic. For additional questions regarding COVID-19 debt and credit relief options, view Experian’s full list of financial and non-financial institutions’ websites where you can find information on relief measures: COVID-19 (Coronavirus) Credit Card and Debt Relief.    

Small businesses are the backbone of our nation’s economy, generating 44% of the nation’s overall revenue. When they take a hit, we all feel it. But as good neighbors – and frequent patrons – we can find a path toward keeping these small businesses on their feet and reopening their doors as soon as possible.    At Experian, our obligation is to fight for small businesses that have been impacted by COVID-19. Main Street America reported in April that “COVID-19 has had a devastating impact on small businesses’ revenue…Approximately 35.7 million Americans employed by small businesses are at risk of unemployment as result of the COVID-19 crisis.”   That is why we moved quickly to support the signing of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), providing relief to Americans through expanded unemployment coverage and by distributing grants and loans to small businesses.   Acknowledging the unprecedented financial difficulties many are facing, lenders have established relief options for customers unable to make scheduled payments. In an effort to safeguard consumers against potential delinquency and protect credit, the CARES Act calls for creditors to adjust reporting systems for those taking advantage of these relief options.   Simply put, your small business’s credit score shouldn’t be your biggest concern these days, and the CARES Act works to ensure that.    We know there’s more work to be done to help small businesses navigate these challenging times. We’ve outlined the following steps to keep your business’s credit on track during the pandemic, taking advantage of resources and services we recently launched:  Call Your Lender: If a customer or small business is unable to pay a bill, the most critical action they can take is to call their lender and inquire about available assistance programs. If consumers are able to get an accommodation, they can stop a missed payment from negatively impacting their credit.  Business Resources Website: Experian has launched a website to help businesses prepare to manage increased attacks, push toward digital banking and understand regulatory changes as businesses find their footing in this evolving financial services landscape.     Credit Report Access for All: Experian is offering all 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 more than 2 million consumers increase their credit score to date. This is in addition to the free weekly credit score we are offering in coordination with our peers through annualcrediteport.com.   COVID-19 U.S. Business Risk Index: Experian has launched a new service to help lenders and government organizations understand how to make lending options available to the business segments that need it most. This, in turn, directly helps small businesses gain access to capital they need. The public tool includes a risk simulator broken down by state to keep business owners updated on how COVID-19 is affecting specific industries in a particular region.  As a nation, we have learned many lessons from the 2008 financial crisis. One vital lesson that sticks with us at Experian is that we’re better at tackling challenges as a collective financial industry, with transparency and a lending hand. At Experian, we’re committed to helping small businesses land back on their feet, and we’ll be there when the backbone of our economy needs additional support down the road.   

To combat a growing threat that’s expected to drive $48 billion in annual online payment fraud losses by 20231,  Experian®  has announced the launch of Sure Profile™. Experian is the first company with an offering to combat synthetic identity fraud that is integrated into the credit profile with market-leading assurance. We are proud to be the first in our industry to actually put “skin-in-the-game” by sharing in fraud losses with our clients if the losses occur on assured profiles.  Experian’s new offering validates consumer identities, detects profiles that have an increased risk for synthetic identity fraud and helps cover losses resulting from synthetic identity fraud for assured profiles.   Leveraging the capabilities of the Experian Ascend Identity Platform™, Sure Profile utilizes Experian’s industry-leading data assets and data quality to drive advanced analytics that set a higher level of protection for lenders. Powered by newly developed machine learning and AI models, Sure Profile offers lenders a streamlined approach to define and detect synthetic identities early in the originations process.   Experian’s Sure Profile differentiates between real people and potentially risky applicants, so lenders can confidently increase application approvals with less risk.    We expect to authenticate most credit applications through Sure Profile. In the cases where the identity can’t be assured, the company will deliver additional fraud risk indicators, so that lenders can take the right next steps to verify the potential borrower’s identity and prevent fraud.  To date, detecting synthetic identities has been a significant challenge for lenders because there’s not an industry standard or a single definition that can be used to establish the legitimacy of an identity. In addition, understanding the financial impact of synthetics has been difficult for lenders as losses tied to synthetic identity fraud are typically categorized as defaults or “bad debt.” With Sure Profile, we are reinforcing our position as a leader by creating a standard set of criteria to define a synthetic identity.   Experian has always been a leader in combatting fraud, and with Sure Profile, we’re proud to deliver an industry-first fraud offering integrated into the credit profile that mitigates lender losses while protecting millions of consumers’ identities. Our investments in innovation, AI and machine learning and our data quality are enabling us to lead the way in identity protection and help protect consumers and lenders alike. 

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

With the impact of COVID-19, we’re certainly in uncharted territory. Many people are struggling with high unemployment, which is resulting in missed credit card, utility, and rent payments. In response, Experian is joining forces with the other U.S. credit reporting agencies, to offer free weekly credit reports to all Americans for the next year via AnnualCreditReport.com. A credit report allows people to monitor their finances and better understand their overall financial health. We’re proud our industry is uniting to make this possible for all U.S. consumers starting today. Credit reports are updated constantly, so the ability for an individual to look at their report weekly is helpful to monitor for lender updates and ensure there is no fraudulent or unfamiliar activity. During these difficult times, this is especially important. In addition to the free weekly credit report at AnnualCreditReport.com, Experian also offers consumers free access to their credit report, FICO score, and ongoing credit monitoring at Experian.com. This is a no-charge product.  We want to give consumers multiple options to access and manage their credit report. At Experian, we’re committed to enabling fair and responsible lending through the power of our data. As the consumer’s bureau, our goal is to not only help consumers build credit but to get better access to credit. All of us are working diligently every day to keep our data as accurate, relevant, and secure as possible so that lenders can use the data to responsibly extend credit to people who need it most especially when the economy returns to strength. What You Can Do Now  The most vital action someone can take if they are unable to pay a bill is to talk with their lender and inquire about assistance programs that may be available. If a consumer receives an accommodation it will have minimal impact on their credit score if their account is in good standing and if there hasn’t been previous delinquencies reported We remain committed to informing, guiding, and protecting people during these unprecedented times. Beyond our offer for free credit reports, we’ve created a dedicated website, with links to multiple resources and materials to help the community learn about credit and other important personal finance topics. We encourage everyone to visit the Experian COVID-19 Resources & Credit Education. Take care and stay healthy.

The pandemic’s full economic impact is still unfolding, and I can assure you we have not stopped evaluating and evolving our COVID-19 response nor our thinking about economic recovery for consumers and businesses alike. In the last month, we’ve been driven by two major priorities.  The first is the health and safety of our employees.  On top of that, we have placed a laser focus on putting our resources to work to help people and businesses during these uncertain times. While we have all been adjusting to our ‘new normal’ working environment, our employees in North America have not slowed down.  In fact, they have worked hard to create solutions and tools designed specifically to help people successfully navigate the evolving financial landscape.  From free credit reports to complementary ‘payer alerts’ for healthcare organizations to consumer credit education, we’ve launched a wide-range of initiatives. Here are a few highlights I’d like to share with you: FOR CONSUMERS: Experian Credit Report and Score: Consumers can sign up and access their FICO® Score, Experian credit report, and ongoing credit monitoring through Experian’s free CreditWorks product. Consumers can also sign up to Experian Boost, a free financial tool that has helped more than 2 million consumers increase their credit score. Consumer Resources Website: As the consumer's credit bureau, Experian’s commitment is to inform, guide and protect its consumers and customers during uncertain times. One way the company is doing this is through this dedicated website, with links to multiple resources and materials to help the community learn about credit and other important personal finance topics. COVID-19 and Your Credit Report: Being fully committed to helping consumers and lenders during this unprecedented period, Experian has created this dedicated blog page with ongoing and updated information pertaining to how COVID-19 may impact consumers’ creditworthiness and – ultimately – what people should do to preserve it. The blog will be updated with relevant news as Experian announces new solutions and tactics. #CreditChat: In response to the urgent and rapid changes associated with COVID-19, Experian is accelerating and enhancing its financial education programming to help consumers protect their financial health. With expected delays in bill payments, unprecedented layoffs, hiring freezes and related hardships, Experian seeks to aid consumers in understanding how the credit reporting system and personal finance overall will move forward in this landscape. Experian has launched an eight-week series of #CreditChat conversations surrounding COVID-19 on Wednesdays at 3 pm ET on Twitter and live video credit chats every Friday at 12:30 pm ET on Facebook Live. FOR BUSINESSES: Free Experian Business Credit Report: Experian is offering all American-owned small businesses free access to their Experian business credit report through May 1, 2020, to help small business owners impacted by the COVID-19 pandemic. By accessing a free business credit report now, small business owners can understand where their credit score stands and look for the best lending options for their business before they obtain funding. COVID-19 U.S. Business Risk Index: To further help small businesses gain access to capital they need, Experian launched its free COVID-19 U.S. Business Risk Index to assist lenders and government organizations in understanding how to make lending options available to the business segments that need it the most. This new risk index can help business risk professionals better understand the impact that the pandemic may have on commercial operations based on several key factors. This methodology combines business risk, anticipated impact on business industries and real-time COVID-19 case data to help businesses better simulate various impact scenarios down to the state level to help develop relevant strategies. Experian® Health Payer Policy Alerts: This is a free comprehensive list of COVID-19 and telehealth payer policy alerts for United States hospitals, medical groups, pharmacies and specialty healthcare service organizations. Payer policy alerts are provided by commercial, Medicare and Medicaid payers and summarize changes to medical coverage policies from those organizations. This public service to the healthcare community will continue to be updated and remain free as long as alerts related to the COVID-19 pandemic continue to be distributed. At-Risk Audiences: In an effort to help essential organizations, such as healthcare and government agencies, provide resources to those most in need during the COVID-19 pandemic, Experian is leveraging its data assets, free of charge, to identify groups of individuals that are most likely to be impacted. Experian developed new audience segments that are built in a privacy-compliant manner and designed to help these organizations find and communicate with at-risk populations, enabling them to deliver essential services as quickly as possible. Business Resources Website: This newly launched website was developed to help businesses prepare to manage increased attacks, continue to push toward digital banking, and understand regulatory changes as businesses find their footing in this evolving financial services landscape. FOR COMMUNITIES IN NEED: First Responders First: Experian North America is supporting first responder workers by donating funds for personal protective equipment (PPE) to COVID-19 for hotspots in New York City and New Orleans through the nonprofit organization, First Responders First. These funds will provide essential supplies, equipment and resources such as masks, gowns, gloves and more to those on the frontline. Heart of Experian Giving Opportunity: Experian is leading this effort in which employees can assist by making a donation to First Responders First through Experian’s Heart of Experian giving opportunity. Experian will match employee donations up to the annual limit of $500 per employee, while funds last. This donation is the latest support the company has provided to help minimize exposure for those most at risk. For example, in California, the company also donated 12,000 masks to the Hoag Medical Group. I’m proud of the work we’re doing at Experian to help those impacted by this crisis. We remain dedicated to our employees, consumers, businesses and communities – and we will continue to innovate and develop new offerings to help those in need. Craig Boundy CEO, Experian North America