Credit report

New tool allows consumers to create their own credit file Experian

Experian is the first major credit bureau that allows consumers to create their own credit report. (iStock)

Credit bureau Experian has launched a new tool that allows consumers with no credit history to create a credit report using transactions not typically noted on credit reports.

Experian Go is the first service that allows users to create their own credit file. The program will help consumers build credit without going into debt by reporting on-time payments to utility providers, streaming services, Internet service providers and cell phone companies.

About 28 million Americans are “credit invisible” with no credit history, according to data from Experian. Another 21 million consumers are “unassessable,” meaning they have a limited credit history or a thin credit file. Without a solid credit history, it can be difficult to open a credit card, rent an apartment or buy a car.

“We believe that every individual deserves the opportunity to reach their full financial potential and we are proud to be the only credit bureau with a program to help invisible credit build their credit history in minutes,” said said Craig Boundy, CEO of Experian.

Keep reading to learn more about the importance of establishing a strong credit history. You can create your Experian account and sign up for free credit monitoring on Credible.

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How to build your credit score with Experian Go

Experian Go is for the nearly 50 million Americans with little or no credit history, such as young adults and college students. If your credit is invisible or unrated, follow these steps to create your Experian credit file and start building your credit score:

  1. Download the Experian mobile app, create a free subscription and authenticate your identity.
  2. Add existing credit accounts, also called tradelines, to your new Experian credit report.
  3. Add your on-time bill payments to your credit report with Experian Boost.

Consumers can use their timely payment history — even Netflix subscriptions — to “become evaluable in minutes with an average starting FICO score of 665,” according to Experian. From there, it can be easier to qualify for lines of credit and add bank accounts that can help users continue to build an established credit history.

You can start the process by creating a free Experian subscription on Credible.

HOW TO GET A FREE COPY OF YOUR CREDIT REPORT

Why it’s important to have a good credit score

Having little or no credit history makes it difficult to qualify for financial products, such as credit cards, mortgages, and car loans. Although consumers with bad credit qualify for these offers, they will likely get unfavorable terms like high interest rates.

“Living with no or limited credit history can be a significant barrier to financial opportunity in America.”

– Craig Boundy, CEO of Experian

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On the other hand, having a good credit score can help you achieve your financial goals, like buying a house or paying for your education. The higher your credit score, the better your chances of being approved for loans and lines of credit.

Take home loans for example: your credit history plays an important role in your ability to qualify for a mortgage, as lenders use your credit score and debt-to-equity ratio to determine your risk as a borrower. Borrowers with excellent credit scores of 760 or higher will qualify for the lowest mortgage rates available, while borrowers with credit scores below 660 will see much higher rates.

How Credit Rating Affects Mortgage Rates

The interest rate you qualify for plays an important role in your monthly payments and the total interest paid over the term of the loan. A recent analysis by Credible found that borrowers with good credit who qualify for a 3.065% mortgage rate on a $200,000 30-year home loan will pay $178 less per month and about $64,000 less on the term of the loan compared to borrowers who pay a 4.624% mortgage interest rate.

Having great credit can help you buy a house, buy a car, or open a new credit card with the best terms available, which can lead to significant interest savings over time. Visit Credible to create an Experian account, so you can access a free copy of your credit report and FICO score.

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