How does Experian Go work? – Forbes Consultant

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Experian, one of the country’s three leading consumer credit bureaus, recently launched an application-based program called Experian Go to help people with no credit or very little credit take the first step towards creating a credit report and credit score.

According to Experian research, at least 28 million people are invisible in the US and another 21 million can not score using the most common credit rating models currently used by lenders.

“This is the first time a consumer has been able to get a credit score without taking on debt,” Jeff Softley, president of Experian’s direct consumer product division, told Forbes Advisor.

Using Experian Go, anyone can create a credit report even if they do not already have open credit limits by simply allowing Experian to verify their identity. In other words, Experian creates a credit report, albeit a blank one, that gets you installed on their system. But how valuable is this service really?

How Experian Go works

Using Experian Go requires a mobile phone and Internet access. To get started, download the mobile app and sign up for an Experian subscription, which is also free.

The app will ask you to verify your identity by uploading a government-issued ID, such as your driver’s license, social security number and photo, which you can take with your mobile phone and upload directly to the app. Please note that you must be at least 18 years old to use the program.

If you have existing credit lines in your name, such as a student loan or as an authorized user on someone else’s card, you will be asked if you would like to use Experian Go to calculate your credit score.

If you do not have enough existing information to build a rating, the app will make recommendations on how to start your credit building journey. Some of the recommendations may include opening a secure credit card, a credit creation account, or other intended types of accounts.

One thing you should know is that Experian can make money through partnerships with any of the products it offers, such as new credit cards or other credit limits. This means that you may receive limited information about the credit products you are applying for.

The Experian Go app also includes tutorials on how credit works, along with recommendations on how to create a credit history.

If so, you may be encouraged to link any utility payments to your credit history using Experian Boost πρόγραμμα, which may increase your rating.

Is Experian Go necessary for people without credit?

Experian Go has its advantages for those who do not have a credit score, but it is not perfect. Perhaps the most important thing to know is that Experian Go is not the only way to build credit.

You can follow many of the steps also suggested in Experian Go on your own to start your credit journey, but without having to download and link your information to one app. Some of the options for creating (or restructuring) your credit may include:

  • A secure credit card. With a secure card, make a cash deposit with your credit card issuer to open your account. The amount you deposit is equal to the credit limit you will receive.
  • Personal loan. With a personal loan, you are given a one-time payment that you repay over a set period of time, usually two to seven years.
  • A credit creation loan. These loans are generally intended for those who do not qualify for other types of loans. With a credit loan, the loan amount is kept in a secured savings account or deposit certificate (CD) in the name of the borrower until the loan plus interest is repaid in fixed monthly installments.
  • Become an authorized user. For those who can afford it, adding an authorized user to the credit card of a trusted friend or family member can help build personal credit.

Experian Go uses a FICO scoring model, which is the most commonly used method of calculating credit scores. The FICO rating is a three-digit number, usually ranging from 300 to 850 used by lenders to assess the risk of being given a loan.

The formula used to calculate the FICO score may vary slightly from year to year, with different versions being used by different lenders. Some lenders may even use a credit score from a company other than FICO.

Conclusion

If you do not want to research how to get started on a credit profile and figure out what steps you can take, Experian Go will simplify the process for you in exchange for some basic information.

Just be aware that it is not the only way to build and generate credit, and you may find it more appealing to do so outside of Experian’s services.

The program can put you on a path with protective railings and guidance on building and building good credit habits, but it does not guarantee credit score success. A combination of good financial habits and time is your best bet for building a stable credit profile in the long run.

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