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While consumers throughout the U.S. continue to manage the impacts of COVID-19, aside from health and wellbeing, one of the most salient concerns has been around the health of consumers’ finances. With many falling under some form of stay-at-home order since the onset of the pandemic, local economies have been jolted and some consumers may be feeling the financial impacts.   As part of Experian’s commitment to improve the financial health of Americans and educate on debt and credit, we focused our research efforts to analyze internal and external data to show how consumer finances have changed in recent months.    Through our initial review, we found that certain measures of consumer finances, on average, had improved since the onset of the pandemic. Whether due to the unprecedented government stimulus, or changes in spending, consumers saw a reduction in average debt and increased average credit scores. Though the data is rapidly changing and the true financial implications of the pandemic may be partially obscured by governmental stimulus efforts, we wanted to take a snapshot and highlight how consumers are faring in the moment. By providing these insights, we can use data for good, helping organizations, experts, and others apply learnings that may positively guide efforts in the future for the benefit of all.     Our Main Findings from January 2020 to May 2020:   The average VantageScore has increased by 5 points   Total average consumer debt total declined by 1%   Average consumer credit card balances have decreased by 14%   The average credit utilization ratio has dropped 5 percentage points   These findings offer an important snapshot of consumers five-months into the COVID-19 pandemic stay-at-home orders. Though initially positive, we want to keep an eye on these trends as they could change over time as government policies and stimulus efforts are amended to adjust to future conditions. To continue providing relevant insights on prevailing trends in consumer finances, we will work to maintain updated research content as the data become available.     You can find links to our most recent research below, and check back at Experian.com/research for updated articles over the coming weeks.   Our Most Recent Research Articles:   COVID-19 Impact: Changes to Consumer Debt and Credit  COVID-19: Consumers Reduce Overall Debt During Pandemic  COVID-19: Credit Utilization Drops as Consumers Cut Spending 

We are excited to share that Experian is proudly supporting MIT’s Solve initiative, which is focused on helping to solve global challenges. We are committing up to $100,000 for the Good Jobs & Inclusive Entrepreneurship and Learning for Girls & Women challenges. Each promotes the financial health of workers, businesses, and communities affected by COVID-19.   At Experian, we feel it is our responsibility to help create a better future for the societies where we work. Today, communities, businesses, and individuals are being confronted with difficult challenges because of COVID-19. We are developing solutions to some of the financial problems that are being faced due to the pandemic. Our key focus is helping people improve their financial health and get better credit, which will help them secure essential services and achieve their goals of owning a home, starting a business, or reaching other ambitions. Some of our accomplishments include Experian Boost having already been used by more than 4 million Americans to try and boost their credit scores; our social innovation programs, focused on delivering societal benefits, which have reached 14 million people; and our employee volunteerism – with employees volunteering 54,000 hours to provide support to people through our financial education and community programs.  Through Experian’s Social Innovation funding program, we develop innovative products that aim to offer societal benefits. Our dedication to social innovation will be on display as we support MIT’s Solve Challenge, which focuses on innovation in the social impact space. This competition is open to tech-based entrepreneurs across the globe and is focused on developing solutions to create lasting change.    Each year, MIT receives thousands of applicants for this program. Our challenge is specifically related to solving financial health issues which have arisen for consumer groups as a result of COVID-19. We will be splitting the $100,000 prize money to accelerate up to four ideas into market, and we will also provide other assistance such as our in-house expertise and resources. This will include mentoring and potentially data or analytics to support the delivery of the most innovative solutions.   Innovation is at the core of this challenge, which is a key focus at Experian. We have been frequently recognised as one of the most innovative companies in the world and feel that our mission and vision will help make this initiative successful. Our people, data, and analytics will support the delivery of the most innovative solutions that are meeting the challenges in today’s challenging landscape.  We are proud to be part of MIT’s Solve Challenge and look forward to working with the winners to help create solutions for those most in need.  

Many of us have turned to streaming services to help us cope during this time of COVID-19. Being able to escape with some good entertainment while still maintaining our social distance is invaluable right now. Television streaming has skyrocketed 85% since March; I’ve certainly contributed to that increase. Now, subscribing to that streaming service can do more than entertain, it can improve a consumer’s financial health. Starting today, Netflix® customers can possibly improve their FICO® Score by adding their positive payment history through Experian Boost. Experian Boost™† is the innovation we launched in 2019 that can help consumers improve their credit score instantly. So far, approximately four million consumers have connected their utility and telecom bills to Experian Boost, leading to more than 29 million points added to FICO® Scores nationwide. This addition makes sense. Experian Boost already allows consumers to receive credit for paying their cable bills, so paying for a video streaming service on time should also help prove creditworthiness. It’s critical that we meet consumers where they are and adapt to help them in their current position, especially during a pandemic. Anticipating and prioritizing consumer needs is our focus and drives our innovation. After all, we’re consumers too. I’m proud of how our team uses their personal experience and their roles at Experian to create opportunity for millions of people to improve their financial health, especially during these uncertain times. Our job is to help consumers, and that doesn’t stop with their credit score. That’s why we’re also launching new free features available to everyone within the CreditWorks Basic and Premium products. The free tools provide personal insights and resources that can help consumers better save money and manage their financial profile. For more information about Experian Boost go to: www.experian.com/Boost. Experian and the Experian trademarks used herein are trademarks or registered trademarks of Experian and its affiliates. The use of any other trade name, copyright, or trademark is for identification and reference purposes only and does not imply any association with the copyright or trademark holder of their product or brand. Other product and company names mentioned herein are the property of their respective owners. †Results may vary. Some may not see improved scores or approval odds. Not all lenders use Experian credit files, and not all lenders use scores impacted by Experian Boost. Credit score calculated based on FICO® Score 8 model. Your lender or insurer may use a different FICO® Score than FICO® Score 8, or another type of credit score altogether. Learn more.