New tool lets consumers create their own Experian credit report

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

The credit bureau Experian has launched a new tool that allows consumers with no credit history to create a credit report using transactions that aren’t typically scored in credit reporting.

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

About 28 million Americans are “credit invisible” with no credit history, Experian data shows. An additional 21 million consumers are “unscorable,” which means they have a limited credit history or thin credit file. Without a robust credit history, it can be difficult to open a credit card, rent an apartment or buy a car.

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

Keep reading to learn more about the importance of establishing a robust credit history. You can create your Experian account and enroll in free credit monitoring on Credible.

FREE CREDIT REPORTS THROUGH ALL MAJOR CREDIT BUREAUS HAVE BEEN EXTENDED

How to build your credit score with Experian Go

Experian Go is targeted toward the nearly 50 million Americans who have little to no credit history, such as young adults and college students. If you’re credit invisible or unscorable, follow these steps to create your Experian credit report and start building your credit score:

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

Consumers can utilize their timely payment history – even Netflix subscriptions – to “become scoreable in minutes with an average starting near-prime FICO Score of 665,” according to Experian. From there, it may be easier to qualify for lines of credit and add bank accounts that can help users continue building an established credit history.

You can begin the process by creating a free Experian membership on Credible.

HOW TO GET A FREE COPY OF YOUR CREDIT REPORT

Why it’s important to have a good credit score

Having little to no credit history makes it difficult to qualify for financial products, such as credit cards, mortgages and auto loans. Even if consumers with bad credit qualify for these offers, they’ll likely get unfavorable terms like high interest rates.

“Living with a nonexistent or limited credit history can be a significant barrier to financial opportunity in America.”

– Experian CEO Craig Boundy

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On the other hand, having a good credit score can make it easier to achieve your financial goals, like buying a home or paying for college. The higher your credit score is, the better your approval odds are on loans and lines of credit. 

Take home loans for example: Your credit history plays a big part in your ability to qualify for a mortgage, since lenders use your credit score and debt-to-income 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 score impacts mortgage rates

The interest rate you qualify for plays a big part in your monthly loan payments and the total interest paid over the course of the loan. A recent Credible analysis found that good-credit borrowers 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 over the life of the loan compared with borrowers who pay a 4.624% mortgage interest rate.

Having excellent credit can help you buy a home, purchase a car or open a new credit card with the best terms available — which can add up 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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Have a finance-related question, but don’t know who to ask? Email The Credible Money Expert at moneyexpert@credible.com and your question might be answered by Credible in our Money Expert column.

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