Margins and Paddings Update

At Experian we’re proud of our culture and commitment to honoring, practicing and celebrating the values of diversity and inclusion. Which is why we’re especially thrilled to be starting the year with some remarkable honors in recognition of our culture. Fortune and Great Place to Work have named Experian North America as one of the Best Workplaces for Diversity. Additionally, for the second year, Experian was awarded a perfect score in the Human Rights Campaign Foundation’s 2020 Corporate Equality Index. Each year, Fortune honors 100 companies in the U.S. that do the most to create inclusive cultures for women, people of color, LGBTQ people, employees who are Boomers or older, and people who have disabilities. The Human Rights Campaign Foundation’s 2020 Corporate Equality Index is a national benchmarking tool on corporate policies and practices pertinent to lesbian, gay, bisexual, transgender and queer employees, and Experian has earned the distinction of “Best Places to Work for LGBTQ Equality.” We’re extremely proud of these awards and the culture we’re building here at Experian. We truly believe in embracing inclusion and diversity and celebrating the differences among our employees. Through our Power of YOU inclusion and diversity commitment, we seek to create an environment where everyone is comfortable bringing their whole self to work, regardless of differences or backgrounds. As part of this effort, we have a variety of initiatives including eight Employee Resource Groups, which are sponsored by Experian and led by our employees. Additionally, everyone across the company is encouraged to play a key role in the creation of our latest innovative products. For example, this past year, we launched Experian Boost™, a free, first-of-its-kind, consumer-controlled tool that has the potential to impact an individual’s financial health for the better. Hundreds of employees from throughout the organization volunteered to personally evaluate Experian Boost because they believed in the product’s potential to help millions of people across the U.S. Throughout the past few years, Experian has received numerous accolades for our workplace and culture, including being named a Top Workplace in Orange County, Calif., by the Orange County Register for the seventh consecutive year, and being named one of the world’s most innovative companies by Forbes magazine for five years.  Our ongoing goal is to further an inclusive and innovative workplace, which helps contribute to greater financial health and inclusion for everyone.  

Through Experian’s technology and cutting-edge innovations, we’re helping consumers build their credit histories and access affordable, mainstream financial products. We are truly improving consumer’s financial lives in a meaningful way. But, with all the exciting innovations in technology, sometimes, it’s easy to forget the impact we can create in our everyday interactions with people.   Let me give you an example.    I recently traveled to Nashville, TN for a conference. Since I didn’t know my way around the area, I hired a driver to pick me up and take me to my hotel. As I was heading to the airport exit, I saw a woman holding a sign that read “Experian.” I introduced myself and we both got into the car and headed for the hotel.   As we were driving, she asked, “So, do you really work at Experian?” “Here we go…” I thought as I responded, “Yes, I do.”   She went on to tell me she was a Desert Storm veteran who faced some real financial hardships that tanked her credit score when she returned home from war. She saw a commercial for Experian Boost, our new tool that allows people to get credit for paying their telecom and utility bills on time. After trying the free tool, her score went up 11 points. This boost got her thinking about other ways she could improve her credit score. I spent the rest of our drive sharing some credit education including the importance improving her debt to income ratio, lowering utilization rates and making on time payments.   As we pulled up to my hotel and I got out of the car, she asked if she could give me a hug. “Of course,” I said. I was touched and slightly surprised, to see how much of an effect I had on her. Only, I didn’t realize then just how much of an impact our conversation would truly make on her life.   I recently had a chance to reconnect with Renee Preston. She told me about the dramatic changes she’s made since we met that are creating a lasting impact on her financial health.    At the time Renee picked me up, she was $56,000 in debt and her credit score was 605. Just a few months after meeting her, Renee put some of the credit education tips I shared with her into practice. Since then, she’s lowered her debt by $36,000 and her credit score has improved by more than 60 points. While Renee knows she still has work to do, she is inspired to continue to improve her financial wellbeing.  “I’ve been driving for more than 26 years. I’ve met all kinds of celebrities like Pink and Justin Timberlake. The fact that Alex took the time to talk to a little person like me, it really meant a lot. Since we met, I’ve taken a lot of steps to improve my credit and finances including getting a job with a much higher salary. I truly feel I owe all of these changes to Alex.”  Renee Preston, Nashville, TN  As a company, we are committed to helping people improve their financial lives. When we talk about being the consumer’s bureau, this is exactly what we mean.   I’m so thankful I had the opportunity to meet Renee. I’m inspired to continue to find new ways to improve people’s financial health, both personally and as a leading member of Experian’s team.  

As 2019 comes to a close, many people are outlining their goals for the new year. For some people, this means making plans to get healthier, reconnect with old friends or find a new job. For many, improving financial health comes in at the top of the list. In fact, we know saving more is a top resolution for 50% of people and one in three want to improve their credit scores in 2020.   Saint Exupery once said, “a goal without a plan is just a wish” and he was right. When setting any goal, it’s important to put a plan in place. An essential first step toward creating an effective plan of action is getting a grasp of your current situation. The same is true for creating and achieving goals related to improving your financial health.   Each year, we take a look at how Americans across the country are managing their credit to help people understand the purpose and impact of their credit scores. Our annual State of Credit report highlights average credit scores, debt levels and delinquency rates of people across America. In releasing this report, we hope to give people insight to help them make more informed decisions about credit use as we prepare to head into a new decade.   Our latest report showed the average credit score hit an eight-year-high at 682. While people are taking on slightly more credit card, mortgage and nonmortgage debt year-over-year, delinquency rates are decreasing on average and utilization remains consistent at 30%, which means people are responsibly managing the debt they’re carrying.   If your credit score is lower than you’d like, or if you’re looking for ways to maintain a positive credit history and improve your financial health, here are five ways you can better your financial standing in 2020:   Check your credit report and credit score. Your credit report serves as your financial references. Take care of your credit report and you will take a big step toward better financial health. Credit scores play an important role in your financial journey. They translate the information in your credit report into a number reflecting the risk of doing business with you.  Check your credit score at the same time you check your credit report. When you get credit score you should receive an explanation of what the score means and what from your credit report is most affecting it. This is an important step to gauge your current standing and to develop a plan to improve your credit report and scores. You can get a free credit report once every 12 months from Experian by visiting www.annualcreditreport.com or through the Experian app.  Keep your utilization rate low.  Your utilization rate, or balance-to-limit ratio, should never exceed 30 percent of your credit limit. At a maximum, your total credit card balances should not be more than 30 percent of your total credit card limits, and you don’t want any one card to have a balance of more than 30 percent of the limit of that one card. Both can hurt you.  This doesn’t mean that you want to get your balances up to 30 percent and keep them there. The lower your utilization rate, the better. People with the best credit scores have utilization rates of less than 10 percent. As you head into 2020, focus on reducing your credit card balances and keeping your balances low.   Use the tools available to you like Experian Boost. If you’re paying your cell phone, cable, satellite and utility payments on time, you can use our free tool, Experian Boost, to potentially increase your credit scores in the new year. We see scores improve for two out of three people who use Experian Boost with an average increase of more than 10 points.   Plan ahead for major credit purchases. For many, the start of a new year can mean a new car, a new home and more. When preparing to make a major purchase, it is critical to demonstrate financial stability in the three to six months leading up to it. While it is important to optimize your scores before purchasing a house or a car, be careful not to make too many big moves right before your purchase.  Closing accounts or applying for new credit could temporarily reduce your scores, so don’t open any new accounts during the months leading up to your purchase. Wait to close accounts or apply for new ones until after you have the keys to that car or house in hand.  Pay on time, every time. Nothing will hurt your credit score more than missed or late payments. To maintain a positive credit history, make a plan to catch up on any missed payments. Enrolling in autopay can be a helpful way to stay on a payment schedule that works for you.   Remember, credit can be a financial tool, but debt is a financial problem. Create your financial game plan for 2020 and use these tips to prepare for a financially healthy new year. If you need help along the way, visit the Ask Experian blog or tune into our weekly Credit Chat.