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The recent wildfires in Los Angeles are now among the most destructive recorded in California’s history. Thousands of structures have been damaged or destroyed, and many families are facing the heartbreaking loss of their homes, businesses and personal belongings. The fires have also tragically claimed lives and caused significant injuries.  In the wake of such devastation, the immediate priority for everyone is, of course, ensuring the safety and well-being of themselves and their loved ones.   As communities come together to navigate this challenging time, we are committed to being a resource to consumers. Our hope is to help those impacted by the fires preempt or prevent potential impacts to their financial health and identity where possible.   If you or someone you know has been impacted by the Los Angeles fires, here are some key points to keep in mind.   1. Safeguard Your Identity  Natural disasters can unfortunately create opportunities for identity theft. Important documents containing personal information may be lost or scattered. According to the Federal Trade Commission, instances of identity theft have nearly tripled over the last decade and scammers often exploit chaotic situations and vulnerable consumers.   Be Wary of Scammers: Sadly, following natural disasters, opportunistic fraudsters often deploy schemes tied to charity and donations, insurance, new financing, construction or clean up, and more. These perpetrators may lift and deploy tactics that were successful following natural disasters in other areas and deploy them to target those impacted by the LA wildfires. Stay vigilant against fraudsters who may try to steal your personal information or money through disaster-related schemes or offers that sound too good to be true.  Use Free Credit Monitoring and Fraud Alerts: Take advantage of these services to keep an eye on your credit activity. If you notice anything suspicious, report it immediately to your bank or financial institution.  Consider Freezing Your Credit: If your personal information has been compromised, freezing your credit with the three major credit reporting agencies can prevent new fraudulent credit applications. You can freeze your credit for free with Experian by clicking here or enrolling in its free app on your mobile device.   2. Contact Your Lenders  In times of crisis, many financial institutions are willing to work with affected consumers. If you’re worried about paying your bills on time due to the fires, reach out to your mortgage, auto loan, and credit card companies as soon as possible.  Your lenders can report accounts as deferred or in forbearance if you live in an area impacted by the fires. This means no late payments will be reported, allowing you to focus on immediate concerns. However, interest might continue to accrue on the balance, so be sure to understand the terms of any agreement.  3. Use Your Credit Report as a Financial Tool  Tracking down contact information for each of your lenders can be overwhelming. Your credit report, which you can access for free at annualcreditreport.com or via the Experian website or its free app on your mobile device, can be a helpful starting point.  While, understandably, protecting your credit history or identity may not be your immediate concern, taking a proactive approach could help prevent any or further damage to your financial health at a time when you need access to credit the most.  For more tools and resources to protect your credit standing and financial health, please visit Ask Experian.  

Experian is celebrating the one-year anniversary of The Legacy League Game Show™, a dynamic and interactive event that has revolutionized financial literacy education for students at Historically Black Colleges and Universities (HBCUs) and Hispanic Serving Institutions (HSIs). This innovative program, part of the B.A.L.L. for Life™ initiative, combines the excitement of a game show with essential lessons on credit and financial management. We marked the occasion where it debuted in 2023: at EntreprenUTSA at the University of Texas San Antonio. The Legacy League Game Show™ has traveled to ten universities such as Morgan State and Shaw Universities and major events across the United States. The National Urban League describes the event as transformational; HomeFree-USA calls it a “model for how to teach anything to Gen Z and other generations.” Thousands of students have participated across the country, and more than 99% report an increase in their financial literacy after the experience. As someone whose family didn’t discuss money matters growing up, this impact is especially gratifying. In addition to making learning fun, The Legacy League Game Show™ addresses a critical issue: financial invisibility among young consumers, particularly within communities of color. Forty percent of consumers under 25 are credit invisible, with 26% of Hispanic and 28% of Black consumers affected, compared to 16% of their white and Asian peers.   Special guests, including rapper and college basketball standout Flau’jae, comedian and actor Mike Merrill, Louisiana State University wide receiver Chris Hilton, Jr. and Grammy-nominated D Smoke have joined the game show, adding star power and excitement. Next year, The Legacy League Game Show™ will hit the road again, visiting more schools and events. We already have stops planned at the #IYKYK Pitch Competition in partnership with HomeFree-USA, the University of Illinois in collaboration with the Hispanic Alliance for Career Enhancement (HACE), and the UnidosUS National Conference. Check out the action from our 2024 stops by clicking here.Learn more about Experian’s commitment to underserved communities in The Power of YOU 2024: Diversity, equity, inclusion and social impact report.

Modernizing the conversation around credit and financial literacy is a key commitment for Experian, especially for young adults. That’s why we partner with organizations like the Singleton Foundation to produce “Your World on Money,” to meet young people where they are, with engaging, easy-to-understand video shorts about credit, budgeting, and saving and more.   We’re thrilled this commitment and creativity has earned both Gold and Bronze Anthem Awards, which recognize excellence in social good, celebrate the impactful work of organizations and initiatives that are driving positive change. Financial literacy is often not taught in schools, and the language around credit and personal finance can be intimidating. By normalizing these conversations, we hope to inspire confidence and action, helping young adults make informed financial decisions as they navigate life’s milestones. Our United for Financial Health partnership with the Singleton Foundation continues with our new series, the Finance Couch, where college students join our experts on a coach in the middle of a Los Angeles campus to answer their money questions. And our Anthem Award-winning series, HeartBroke, helps couples whose relationships are tested with financial issues to determine if they can work through it or end up HeartBroke(n).

Throughout time, we’ve seen examples of how new technologies can reshape the way we live our lives and manage our finances. As a millennial, the standouts to me are the start of the internet and the rise of the smart phone and mobile banking. Each innovation has opened new ways of learning and simplifying the way we do things.  Now, we find ourselves on the brink of another intriguing shift with the rise of generative AI. This development is especially timely, as we know consumers are hungry for information and resources to improve their credit scores and overall financial health. To get a better sense of how consumers are tapping into this technology, we deployed a survey which showed a significant number of Americans are already embracing generative AI. In fact, 63% of consumers are familiar with generative AI, including 84% of Gen Zers and 79% of millennials. Having learned about finances through trial and error (an approach I wouldn’t recommend), and now dedicating myself to consumer education advocacy, I find this incredibly exciting. Especially considering many consumers, nearly half, are also beginning to tap technology to help manage their personal finances. It’s perhaps no surprise this resonates most for America’s youngest consumers, with 67% of Gen Zers and 62% of millennials stating they use or are considering to use the technology to manage their personal finances. The good news is consumers who are using the technology for personal financial management are reporting an overwhelmingly positive experience – an impressive 96% reported positive experiences and 77% stated they use generative AI for personal financial tasks at least once a week. Key findings include: FINDINGSTOTALGEN Z (18-27)MILLENNIAL (28-43)GEN X (44-59)BOOMER (60-78)SILENT (79+)Indicate they are somewhat or very familiar with GenAI technology63%84%79%58%40%29%Indicate using GenAI to learn about a new topic or personal finances33%46%43%28%19%18%Indicate they are using or considering using GenAI powered tools or apps to help with managing personal finances47%67%62%41%28%23% As we continue to explore the benefits of generative AI, it’s clear this technology can be a valuable resource for improving financial literacy as we look ahead. We believe that the responsible use of AI can open new opportunities for consumers seeking to enhance their financial health. However, as with anything new, there are a few things consumers should keep in mind if they are currently leverage, or considering leveraging generative AI to learn about or manage their finances or credit scores, including: Don’t forget the basics: While there’s no question generative AI can be a helpful tool for managing your finances, consumers shouldn’t lose sight of the “old school” ways to protect their financial health and credit standing. This includes checking your credit report and scores regularly. You can get a free copy of your Experian credit report and FICO® Score[1] updated daily at www.experian.com or via Experian’s free mobile app. Consumers can also get a free credit report from each of the three credit reporting agencies once a week at www.annualcreditreport.com.  Verify your findings: Generative AI tools are only as good as the information they consume and there’s no shortage of misinformation about managing your credit scores and finances that exists online. Always cross-check AI-generated financial advice with reputable sources. You can find answers to many personal finance and credit-building questions on Ask Experian—Experian’s free credit advice blog. Be safe and use generative AI responsibly. Many of the generative AI tools that exist today collect and store user data. Be mindful of the personal information you share with generative AI tools to ensure your information is protected. In short, the rise of generative AI marks a pivotal moment in personal finance education, and an exciting one for me. As we embrace this technology, I believe we can create a more informed and financially empowered consumer base. [1] 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.

We believe that financial literacy leads to empowerment. That is why Experian supports initiatives and partners with community organizations to deliver financial education. We also develop products and services that give more control to consumers over their credit profile and financial health. As part of advancing our mission of Financial Power to All®, we are proud to announce we are helping more than 5,000 Hispanic individuals nationwide by relieving $10 million dollars of consumer debt. To provide families with this boost, we joined forces with ForgiveCo, a Public Benefit Corporation (PBC), to administer the acquisition and cancellation of qualifying consumer debt for the selected recipients. Beneficiaries will also receive a one-year premium Experian membership for free that offers access to their Experian credit report in English and Spanish[i], FICO® Score[ii], bilingual educational content, and other financial resources. We hope this effort helps raise awareness of the importance of financial literacy for everyone, and that Experian has resources to help individuals reach their financial dreams.  To amplify the message, we collaborated with multi-platinum, award-winning singer and songwriter Prince Royce and you can see his video here. In fact, we have been making a concerted effort the last several years to evolve our educational resources and products to better support all underserved communities. Some of our other activities include the creation of the B.A.L.L. for Life initiative that connects African American and Hispanic youth with financial education, supporting scholarships for Asian Americans through the Ascend organization, providing custom resources for Out & Equal and Born This Way Foundation for the LGBTQ+ community, supporting the NextGen Innovation Lab for Disability:IN, and sponsoring credit counseling for the military community with Operation HOPE. For resources in Spanish, Experian offers a credit e-book and consumers can access a full suite of articles at the Ask Experian blog here. [i] Only Experian credit reports are available in Spanish. All other services associated with an Experian membership are available in English only. English fluency is required for full access to Experian’s products.  [ii] 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.

As financial uncertainty persists, you may find yourself turning to your credit cards to get through this challenging time. While credit cards can be a valuable financial tool when used wisely, they can also be a source of financial stress if you find yourself charging more than you’re able to pay back. Not managing your debt well can also affect your credit utilization, a term you’ve probably heard of but may not know much about. Simply put, credit utilization measures the amount of available credit you’re using on your credit cards. It’s a ratio of your outstanding balance to your overall credit limit. So, what does it mean for your credit score? Let’s unpack some myths and facts that may help you understand the importance of credit utilization, as well as ways to calculate and manage your utilization. Myths vs. Facts Myth: Credit utilization has no impact on your credit score if you pay your bills on time. Fact: In FICO’s most commonly used credit-scoring model, debt and credit utilization account for 30% of your overall score, second only to your payment history. This means the closer you are to your credit card limit, the lower your credit score might be. Aim to keep your utilization per credit card as low as possible to safeguard your score. As your utilization ratio approaches 30 percent of your limits, your scores will begin to decrease much more rapidly. People with the best scores generally have utilization of less than 10 percent, and you never want it to exceed 30%. Myth: If you max out a credit card, you should take out a new card to free up your overall credit limit and improve your utilization ratio. Fact: There are two types of credit utilization measurement: per-card and overall. Per-card utilization looks at your ratio of debt to credit limit on an individual card basis. Overall utilization takes your total utilization across all cards into account. Credit scoring models take both per-card and overall utilization into account, so having just one maxed out card could hurt your credit score. Opening a new account also introduces several aspects that may actually increase your risk. There is a new inquiry. A brand new account has been added to your credit report that you haven’t started to pay on, yet. And because scores require three to six months of activity before being included in score calculations, it’s not helping your scores. In fact, the risk associated with opening a new account may outweigh any potential benefit of reducing your utilization rate. Myth: Once you pay off a credit card, your credit score will improve. Fact: While your credit score could see improvements if you pay off a credit card, the impact may not be immediate. Your lender reports your account status about once a month, so it could be several weeks before your report is updated. Scores calculated after your report is updated will reflect the paid off amount. Depending on when you made a payment, it could take a full billing cycle before your credit report is updated and your credit score reflects those changes. Now that we’ve established the basics of credit utilization and how it can impact your score, consider how to keep it in check. Calculate your utilization The first step to getting your utilization rate in a good place is to determine your current utilization percentage. You can calculate your utilization rate by: Adding up the total balances on all credit cards Adding up the total credit limit across credit cards Dividing the total balance (from step 1) by the total credit limit (from step 2) Multiplying this number by 100 to see your credit utilization ratio as an easy-to-read percentage Manage your utilization Thirty percent utilization is not a goal or target. This is a common misconception about credit utilization. Thirty percent is a number you should strive to stay as far below as possible. It represents a mathematical limit at which your scores will begin to plummet. The lower your utilization rate, the better. Paying your balance in full is ideal, but that’s not always practical. As a general rule of thumb, aim to keep your utilization as low as possible to minimize its impact on your credit score. If you’re wondering how to lower your credit utilization ratio, consider the following strategies: Make multiple payments throughout the month. Instead of allowing the balance to accumulate, pay down your debt in increments throughout the month to ensure the amount on your billing statement doesn’t close in on your limit. Time your payments, and make sure you pay in full each month. Time your payments ahead of your statement closing date, so your most up-to-date credit utilization information is calculated into your score. It’s ideal to pay the balance due in full. If you can’t pay it in full, pay as much as you can to keep your utilization as low as possible. Keeping open credit accounts. Even if you don’t intend to use them much, closing accounts with zero balances can lower your overall credit utilization. You need to make a small purchase from time to time to show activity in the account, though. Accounts with no activity reported will be excluded from scores after a period of time. If you don’t use the card, it could still be on your credit report but not be helping your credit scores. If you’re concerned about making payments on time, connect with your lender to determine the best path forward. Check out my recent post on deferment and forbearance relief options for more information.

Experian is a proud member of the Better Identity Coalition, which is committed to working alongside policymakers to improve digital security, identity verification, privacy and convenience for everyone. Together, we’re seeking innovative ways to empower Americans to take control of their identities and conduct online business securely.   On September 11, 2020, a bipartisan group of House members led by Congressman Bill Foster, introduced the “Improving Digital Identity Act of 2020” to modernize and digitize our essential government identity infrastructure.  Through the Better Identity Coalition, Experian supports this bill and the steps it’s taking to help improve digital identity, security and privacy for Americans.    As a result of the impact of the COVID-19 pandemic, consumers and businesses have quickly adapted to doing nearly everything digitally, but most government-issued identity credentials, such as drivers’ licenses and passports, were not created to be verified online. The “Improving Digital Identity Act” creates a comprehensive approach across federal, state and local government to address critical shortcomings in identity tools that today make it easy for fraudsters to prey on Americans.  The bill creates a framework of standards that new identity solutions should follow to ensure privacy. The bill also allows for federal grants to be given to states to jumpstart modernization of the systems that provide driver’s licenses or other types of credentials to enable digital identity verification, in accordance with the NIST framework. It’s important that the bill gets passed to bring the United States up to speed on digital identity and help fix government-issued identity problems.  In addition to supporting bills like the “Improving Digital Identity Act of 2020,” Experian is working hard to develop new innovations to make digital commerce safer for consumers and businesses. Our most recent innovation, Sure Profile makes us the first company with an offering to fight synthetic identity fraud that’s integrated into the credit profile with market-leading assurance. In fact, we are so confident in our solution that we’ll share in loan losses on assured profiles if we get it wrong. Experian is also proud to be the only credit bureau in the initial rollout of the Social Security Administration’s new electronic Consent Based Social Security Verification service. Our inclusion ensures our clients have the tools to more easily detect online fraud while also better recognizing legitimate consumers.       

This blog is written by Rachel Duncan, HR Director, at Experian. At Experian, we encourage our employees to bring their whole selves to work and have created a culture of inclusion that helps to fuel our continued product innovation. We understand the incredible value in having a truly diverse workforce and this means removing barriers and working through challenges we all may face in and outside the workplace.   That’s why we are proud to be supporting Stonewall’s ‘Trans Rights Are Human Rights’ campaign today to help reform the Gender Recognition Act (GRA) 2004. We believe that all trans people should be protected and supported with legal and policy framework that enables them to live with dignity, privacy and respect, free from fear, isolation and discrimination.  The GRA was introduced in 2004 to allow trans people to apply for legal recognition of gender in which they live. However, the process in doing so is expensive, intrusive and takes a very long time. To apply for a Gender Recognition Certificate (GRC), which allows someone to legally change their gender, the individual will have to overcome many psychological challenges and it can be very emotionally taxing.  It’s estimated that just 12% of trans people have a GRC, despite 92% of trans people stating in the National LGBT Survey (2018) that they would be interested in getting one. GRA reform is therefore a key step in allowing legal gender recognition to become accessible to this marginalised community.   The reform requests the removal of having to disclose a psychiatric report or proof of diagnosis in order to obtain legal recognition. It moves to allow trans people the human right to decide their gender for themselves and protect all trans and non-binary people’s rights to privacy and to family life.  As well as this, non-binary people should be able to legally change their gender to reflect who they are including amending their birth certificate to reflect this.  The reform should also include the removal of the spousal veto. This veto allows for the spouse of a trans person the decision as to whether they can change their gender and gives control over to someone who may not have their best interests at heart.  We are fully committed in ensuring LGBTQ inclusion which means, as well as evolving our own internal policies and practices, we must also contribute to external debates that campaign for equality.  Our Experian Pride network has been instrumental in helping us drive change throughout the business, whilst also educating and raising awareness amongst our colleagues about the LGBTQ community. This includes supporting a collaboration with Stonewall and our HR teams to create our new ‘Transitioning at Work’ policy, along with raising money for transgender charity, Mermaids.   Experian is part of a growing group of leading businesses who have joined forces to support trans equality, so we hope that together we can make a real difference to the lives of trans people across the UK. See our interview with Lewis Hayden, Service Desk Specialist and Experian Pride Network Member.

The COVID-19 pandemic reshaped Americans’ personal and financial lives. If you find yourself in a situation that could make fulfilling your credit card, loan, or mortgage payments challenging, you may be wondering what relief options are available to help navigate these changes.  The good news is there are options if you need financial support during this time. However, it can be difficult to know where to start. The two primary relief avenues are deferment and forbearance. While different in practice, these terms are often used synonymously, even by those within the credit industry.   While similar at first glance, there are significant differences between forbearance and deferment agreements. While both are intended to pause or reduce payments for a certain period, there are variances when it comes to how you must repay the delayed payments.   It’s important to understand how these two options work when speaking with your lender, so you can choose the best path for your personal financial situation. Whichever avenue you take, remember that deferment and forbearance are both temporary measures and shouldn’t be used as permanent solutions.  Pausing Payments with Deferments    You may have seen the term deferment in the news more recently with mortgage relief and student loan deferral options. So, what exactly is deferment? Through this option payments are put on pause and deferred until a later date. This is a longer-term strategy that enables you to pay back your loan over time, when your financial situation puts you in a position to do so responsibly. Interest can sometimes accrue during a deferment period, depending on the type of loan and the lender you’re working with, so it is important to talk with your lender to fully understand your agreement terms.    Periods of deferment vary in length – in some cases lasting as long as your financial situation requires. You should opt for deferment if your financial situation or an unexpected event, such as being let go from your job, creates an undue burden that makes it impractical or impossible to keep up with regular payments.  Temporary Relief with Forbearance    The other option to discuss with your lender is forbearance. Whereas deferment allows you to pay back a loan over time, forbearance is a relief strategy that typically requires the borrower to pay a lump sum and accrued interest at the end of the forbearance period. For example, if you paused payments for five months, at the end of those five months, you would pay your lender the total of paused payments and the accrued interest.   If you’re seeking forbearance for federal student loans, there are two different types of forbearance: mandatory and discretionary. With mandatory forbearance, lenders are required to pause payments if a borrower meets a set of financial criteria that could prevent them from making payments on time. Eligibility for mandatory forbearance includes: enrolment in a medical or dental residency program, payments on your federal student loans being greater than 20% of your total monthly gross income, and other circumstances that could hinder your ability to make payments. Confirm whether you’re eligible with your lender.  Discretionary forbearance means the lender makes the decision at their discretion to put payments in forbearance based on your unique financial situation.   Forbearance is generally a shorter-term option and the avenue to take if you don’t qualify for deferment. Consider forbearance in times of true financial crises, such as an unexpected medical bill, that would temporarily inhibit you from making a monthly payment.  How to Work with Your Lender on Relief Options  While discussing these options with your lender, it is critical to have a full understanding of what the agreement will entail – from interest rates to your timeline for payment – to ensure you’re in the best position to fulfill the agreement with your lenders once your payments resume.

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