Credit Services: Experian
“There are lots of credit services out there. In this article, Experian explains what sets them out from the rest. Read it now!”
Credit Services provides information to organisations to help them manage the risks associated with extending credit to their customers and preventing fraud.
Experian has developed core expertise in building and managing very large and comprehensive databases containing the credit applications and repayment histories of consumers and businesses.
Experian operates 19 consumer credit bureaux, maintaining information on close to 800 million consumers. Our goal as a consumer credit reporting agency is to help lenders make better informed and faster credit decisions through access to detailed historical information about how consumers have fulfilled their credit obligations.
Experian’s clients are drawn from a wide range of industry sectors, where organisations routinely extending or offering credit to their customers, such as financial services, telecommunications, utilities, retail and insurance.
Our credit reports vary by country, but typically include identity data, transactional data, past and present credit obligations, court judgments, bankruptcy information, suspected fraudulent applications, collections data and previous addresses.
In the more developed credit markets, such as the US and UK, a credit report includes both positive and negative information. Positive data includes accounts that have been paid on time, forming a complete view of a consumer’s financial behaviours, while negative data includes past-due payments, collections accounts and public record information such as bankruptcies. In emerging credit markets, consumer credit reports often contain only negative data.
Experian does not make lending decisions or offer any comment or advice on particular applications, but simply provides factual information. This information is used by lenders throughout the customer life cycle:
Prospecting and origination
At the prospecting stage, where regulations permit, credit reports are used to identify consumers for pre-approved offers of credit.
At the application stage, credit reference checks are undertaken to verify the applicant’s identity, to assess credit risk and the potential for fraud, and to set the terms and conditions of the credit offer.
Account management and collections
Changes in a consumer credit report often indicate change in the risk or opportunity presented by existing customers, helping lenders to drive account management and retention programmes.
Experian’s credit reports also help improve the return on collections processes by optimising collection efforts, locating debtors and confirming and updating contact details. More at Credit Services