Experian: the basics, credit reporting and monitoring services

Experian is one of the three major credit bureaus in the United States, sharing the top spot with Equifax and TransUnion.

Its primary function is to collect information on the financial behavior of consumers and businesses and to compile it into credit reports. Information on over 1 billion people and businesses including 235 million individual U.S. consumers and more than 25 million U.S. businesses is stored in their database. Although there are several scoring models, there are two models typically used to calculate your credit score – the FICO and VantageScore models.

Many credit card issuers turn to Experian to evaluate your creditworthiness when you apply for credit. Major players in the credit card market, like American Express, Bank of America, Capital One, Chase, Citi, Discover, Wells Fargo and more, often partner with Experian. They may use Experian along with other credit bureaus to verify your identity, your credit history, and your credit score.

Your credit score is an important indicator of your overall financial health. It’s a key factor when lenders decide if you’re a trustworthy borrower and what rates and terms you get on a line of credit. That’s why it is so important to keep track of any changes in your credit reports and keep them free of errors and fraud.

Each credit bureau offers its own credit monitoring options, and Experian provides one of the best services for tracking your credit score.

Consumers can enroll in Experian’s credit monitoring service – Experian CreditWorks^SM which gives access to your credit report and FICO® score. This service is designed to alert you to any changes or suspicious activity on your account and credit report and the ability to freeze access to your credit report as needed. It’s ideal for those who need basic credit monitoring and protection. You receive a 7-day trial period for $1. After that, the monthly fee is $21.95.

Checking your credit report lets you see an overview of your open accounts, along with a summary of how you’ve managed your credit. By understanding your credit history, you can make financial choices based on the information in your credit report.

Moreover, reviewing your credit report is a good first step to take before you apply for a new line of credit. You can verify that your information is accurate and dispute any incorrect information.

In addition to credit history and score, Experian has other products and services for consumers to offer.

Experian Go™

If you’re a credit newbie, Experian Go™ can help you define your unique credit journey by guiding you step by step from establishing credit to getting your FICO® Score. You can see how your financial decisions can impact your credit and get useful insights along the way, so you can learn about credit and create healthy credit habits.

Experian CreditLock

Another useful feature that protects your valuable credit information with the touch of a button is Experian CreditLock. You can use Experian CreditLock to lock your Experian credit file to protect against identity theft, block unauthorized access to your credit profile, and receive real-time alerts if anyone applies for credit in your name.

Experian Boost

Experian Boost^TM is a free feature you can use to raise your FICO® Score instantly. The service works by adding your on-time payments for utilities, cellphone, and popular streaming services to your Experian credit file. Once the accounts are added, a new credit score is instantly generated. Customers with limited or poor credit could see an increase in their FICO® Score powered by Experian thanks to a new positive payment history.

However, keep in mind that the boost applies only to your Experian credit score and won’t show up on your TransUnion or Equifax credit reports.

Experian CreditMatch & Personal Loans Match

Experian product Match tools give you approval odds for credit cards and a wide range of loans based on your credit report.

If you are looking to get a credit card or loan but aren’t sure if your application will be approved, prequalification can help you determine whether you should apply for a new credit line or improve your credit before you proceed with an application.

Unlike a standard credit application that typically results in a hard credit check and can temporarily lower your credit score by a few points, prequalification involves a soft credit check, which won’t affect your credit score. Although, credit prequalification isn’t a guarantee of being approved, it can help you get an idea of your eligibility.

If you have questions or notice problems with your account, Experian’s customer service is always available when you need it. Moreover, if you’re faced with the identity theft, you’ll be assigned an agent who specializes in fraud resolution to help you on every step of the way.