What Is Experian? The Beginner’s Guide to The Popular Credit Bureau 

Experian is one of the leading credit bureaus. It generates credit scores—the very ones that lenders, creditors, and even potential employers use to make decisions. In a world where credit scores can make a major difference in terms of not only what we get approved for, but how much interest we pay, it’s vital to have a good understanding of your credit score and credit bureaus such as Experian.

What Is Experian?

Experian is a worldwide credit reporting leader that serves 100 countries and 1 billion people. It assists individuals in verifying their credit reports and credit score. In addition to determining credit scores, it also provides services such as supporting businesses and individuals to manage credit risk, preventing credit fraud, and protecting against identity theft.

How To Get Your Experian Credit Report

There are a few ways to get your Experian credit report. First, you can get it directly from Experian by signing up for an Experian account. Second, from providers such as annualcreditreport.com, banks and lenders, and personal finance apps and tools.

Here are five ways to get your Experian credit report:

1. Directly From Experian

To access your credit report and credit score, you can directly visit one of the credit bureaus like Experian. You just need to sign up for an account with them to be able to view both your credit score and credit report.

2. Annualcreditreport.com

Consumers in the U.S. have the right to receive a free copy of their credit report once a year from each of the three major credit bureaus (Experian, Equifax, and TransUnion). Simply go to annualcreditreport.com to access your free credit report.

3. Bank and Lenders

Your bank or lending institution might offer a free service to check your credit score from time to time.

4. Fair Credit Reporting Act (For Those That Have Been Denied)

If you have been rejected for a loan or credit, you should receive an “adverse action letter” as per the Fair Credit Reporting Act. This letter will provide an explanation for why your loan or credit was denied. The letter will also contain information regarding your right to obtain a free copy of the credit report that was used to make the decision.

5. Personal Finance Tools & Platforms

There are also many different personal finance tools and platforms available that offer access to your credit score and credit report. For example, Credit Karma and Credit Sesame both offer credit reports and scores at no charge.

What Experian Does With Your Information

Following the Experian data breach in 2015 where an unauthorized party gained access to the personal information of approximately 15 million T-Mobile customers who had applied for credit, it’s easy to understand why anyone might be concerned about the safety of their data.

Experian and other credit bureaus gather and store personal credit details which are later offered for sale to creditors, lenders, and sometimes to other individuals as credit reports.

Experian uses your data to assist lenders and creditors evaluate your creditworthiness by analyzing your credit reports. This process involves examining your payment history and any potential collections or judgments filed against you.

How Does Experian Collect Your Data?

Experian collects information about you from a variety of sources, such as creditors, including banks, credit card issuers, mortgage companies, and automobile finance companies. Collectively, it uses these to then analyze factors such as your payment history, credit history, credit mix and more to determine your credit score.

What Information Does Experian Collect?

Experian collects a variety of financial data on users to determine credit scores, such as payment history, credit mix, and more. This includes data from creditors such as banks, credit card issuers, mortgage companies, and automobile finance companies. Experian also looks at factors like whether there are any collections or judgments filed against the user, such as if they have had any bankruptcies in the past seven years.

How Long Do Judgments Stay On Your Credit Report?

Part of how credit bureaus, such as Experian determine your credit score is your public records and collection items. For example, if you have a prior bankruptcy, any civil judgments owed, or government tax liens. The amount of time that these stay on your credit report is referred to as the ‘retention period.’

These retention periods vary by state, however, they are generally on your credit report for a set period of time. These times vary by judgment.

• Civil judgments — 7 years
• Unpaid tax liens — 10 years
• Paid tax liens — 7 years from the date paid
• Chapter 7, 11, or 12 bankruptcy — 10 years
• Chapter 13 bankruptcy filing — 10 years
• Chapter 13 bankruptcy dismissal or discharges — 7 years
• Bankruptcy that is voluntarily dismissed — 7 years

What if Experian Has Incorrect Information?

It’s surprisingly not uncommon to have incorrect information on your credit report, and of course, this can impact your credit score. In the case that you find any incorrect information on your credit report, you should dispute it with Experian so that your report can be updated and your credit score can more accurately reflect your creditworthiness.

How To File a Dispute to Remove Errors

If you have found an error on your Experian credit report, you can file a dispute with Experian online, by phone, or by mail. Before contacting Experian, it is advisable to collect any supporting documentation that can help you prove that the information on your credit report is incorrect. This could include things like bank statements, receipts, or other proof of payments.

Here are the three ways to file a dispute with Experian:

• Online — Visit Experian’s dispute center and follow the prompts to create an account and submit your dispute.
• By phone — Call Experian’s dispute hotline at 1-866-200-6020.
• By mail — To file a dispute by mail, download the dispute form, complete the form, add all required and supporting documents, and send it to Experian Dispute Center at P.O. Box 4500, Allen, TX 75013.

After filing your dispute, it’s wise to follow up. Experian is required to investigate your dispute and respond within 30 days. If your dispute is successful, the incorrect information will be removed from your credit report. If your dispute is not successful, you can request that a statement be added to your credit report explaining your side of the story.

It’s important to note that you should also file disputes with any other credit reporting agencies that are reporting the incorrect information on your credit report as Experian is not the only credit bureau.

Bottom Line

It’s important for consumers to monitor their credit reports and credit scores because this information plays a crucial role in their financial lives. This information is used by lenders, landlords, and even employers to make decisions about a person’s creditworthiness and financial responsibility. Additionally, regular credit monitoring can help you better understand how your financial behavior affects your creditworthiness, which can help drive positive change.

Frequently Asked Questions (FAQs)