No credit history? A new Experian tool lets you create credit reports

Experian, one of the big three credit bureaus, has launched a new feature on its app that allows consumers with “invisible” credit histories to create a credit report, using transactions not typically included in the notation.

Experian says its new program, Experian Go, targets the nearly 50 million consumers who have no or limited credit history. That includes students, but also a disproportionate share of people of color, as one in five black consumers and one-third of Hispanic consumers have no credit in their name, according to a recent Experian survey.

By making regular, on-time payments for bills such as utilities or even a Netflix subscription, consumers could build up a credit history that would improve their credit score. A higher credit score helps consumers qualify for things like credit cards, apartment loans and rentals, and for loans and financing at lower rates.

The trade-off is that Experian users have to provide valuable personal information and will likely receive “recommendations” for other products they may not need, such as credit monitoring.

How Experian Go works

If you are interested in the program, you can create a free account here. When creating a new account, you will be asked to authenticate your identity using a government-issued ID, social security number, and photo of your face .

Technically, there are two parts to how this all works: Experian Boost and Experian Go. Launched in 2019, Experian Boost lets you add cell phone, utility, or video streaming bill payments directly to your report. of Experian credit. Experian Go allows users to create new credit reports from scratch and offers personalized recommendations for accounts to add, using Experian Boost.

There is no difference between a report generated by Experian Go and the traditional reports that Experian already offers, according to a company spokesperson: “To a lender, it will look like any other credit report from Experian.”

Based on the results of a targeted soft launch of Experian Go in October, Experian says 15,000 userss were able to complete a credit report in minutes. The company says that for those who used Experian Boost, the average starting FICO score was 665, which is considered a “fair” score. Experian did not immediately respond to a request for additional information.

For more on how to improve your credit score, check out this article from CNBC Make It.

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