Experian Credit Reporting Agency
Posted on May 21, 2015 in Credit Bureaus
Experian is the third major credit reporting bureau in the United States. Founded in 1980 Experian is relatively new to the credit reporting industry. Like the other major credit bureaus, Experian works with businesses and consumers to gather, analyze, and deliver information about people's credit histories so that companies can make informed business decisions and consumers can monitor their credit rating so it does not become problematic.
History of Experian:
Experian has a much different history than the other two credit reporting agencies TransUnion and Equifax. Being the youngest company of the three, Experian has been much more involved with the marketing services aspect of the consumer information industry. In recent years Experian has started to purchase various web properties that focus exclusively on email and internet marketing as a way to help utilize the consumer information they have access to. Unlike the other reporting agencies, it has not been a smooth ride so far for Experian. In 2005, Experian accepted a settlement from the Federal Trade Commission for tricking consumers into signing up for a 'free credit report' on Experian's website, consumerinfo.com. While consumers thought they were receiving a free credit report, they were in fact authorizing Experian to charge their credit cards $79.95 for the 'free report'. Because of these deceptive practices Experian was forced to pay $950,000 in fines to the FTC.
In recent years Experian has cleaned up its act and become much less deceptive in the way it communicates with its customers. These new and improved business practices have allowed Experian to become of the three largest consumer credit bureaus in the world.
Why we need companies like Experian:
Consumer credit information companies such as Experian are an integral part of our economy. Companies such as these allow businesses to make informed decisions when it comes to lending money, issuing credit, or extending employment. By being able to avoid transactions with consumers who will not be able to pay their bills lenders are able to save themselves a lot of money and increase their profits. Experian is also a valuable resource for consumers. With the help of credit reports consumers are able to see what affects their credit score. If there are various delinquent accounts on someone's credit history he will be able to see that those accounts are lowering his credit score and need to be paid off in full. Experian's credit reports are also a great way to detect identity theft. If you notice a bunch of new accounts opened in your name that you personally did not start you can take the appropriate actions to get those accounts removed from your credit history, thus restoring your credit rating.