All posts by Christina Roman

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.

In the aftermath of a natural disaster, the furthest thing from your mind is your personal finances, and rightfully so. Ensuring the safety of family and friends, as well as securing shelter, food and water, all take precedent. However, once you’ve addressed your most immediate concerns, understanding your financial health can help protect you during these challenging times. While a natural or declared disaster, in itself, doesn't directly impact your financial health, it can have an indirect impact by making it harder to pay your bills. Potential income disruption caused by the disaster, like job loss or damage to your property, can potentially lead to late payments and negatively impact your credit, if not managed properly. Fortunately, there are several steps you can take to protect your financial health. Contact your lenders The financial effects of a natural disaster can be devastating in a variety of ways. If your car or home is damaged or destroyed, and insurance won't cover some or all of it, you may get saddled with bills or take on new debt. Lack of transportation may affect your ability to get to or perform your job. You might be injured and face medical bills, or you could have to miss work to take care of family or your home in the aftermath. Although it's ideal to prepare your finances for emergencies before a natural disaster hits, it's not always possible. If you’re facing a disaster, you’ll want to be as proactive as possible to protect your credit and finances. To the best of your ability, it’s important to continue making your monthly bill payments on time. Paying at least the minimum payment on your accounts will help you protect your credit. However, if you’re unable to make your payments, it’s important to take action immediately. Contact your lenders and credit card issuers as soon as possible to ask about hardship options. Don't wait until you've already missed a payment. In some cases, you won't be eligible for hardship options unless you contact lenders before the payment is due. In addition to contacting your lenders and creditors, reach out to your utility, mobile phone and cable providers, as well as any other monthly services you pay for, to see if they can offer flexible payment options. Monitoring your credit is key Unfortunately, times of crisis are times when fraudsters and scammers work hard to take advantage of people. Be sure to regularly check your credit with all three nationwide credit reporting agencies (NCRAs) during this time. You can access a free weekly credit report from all three NCRAs at annualcreditreport.com. Review your credit report carefully, looking for any inaccuracies or suspicious activity. If you find anything you believe to be inaccurate, you can dispute the information with the credit reporting agency where you found the information. Disputing information on your credit report is free and easy to do online, by phone or by mail. Recovery Plan As you recover from disaster and begin to rebuild your life, savings and possibly your home, know there is a host of resources and programs available to help, and creditors and utility providers will often grant hardship relief. By reaching out to creditors quickly and monitoring your credit report, you can protect your credit and bounce back from a disaster with your credit score intact.

Like many people, money and personal finance were not topics often talked about when I was growing up. The same was true when it came to credit. In fact, I was raised to believe credit was something to avoid. I didn’t learn credit can be a financial tool to unlock many of the things we want in life until I was much older. This meant I learned a lot about credit and personal finance by making mistakes. And new research reveals this is the case for many Americans. Understanding credit and personal finance is paramount for financial well-being, especially for younger generations navigating today's financial landscape. Yet, against the backdrop of Financial Literacy Month, our new research shows a lack of financial knowledge is leading to costly financial mistakes for many. In fact, our survey of 2,000 adults across the U.S. revealed three in five adults feel their limited understanding of credit and personal finance has led them to make financial mistakes, with 60% of this group stating these mistakes have cost them $1,000 or more. This trend is particularly apparent among younger groups with 71% of Gen Zers and 70% of Millennials claiming their inadequate knowledge of credit and personal finance has come at a price. Twenty-nine percent of Gen Zers and 38% of Millennials report these financial mistakes have cost $5,000 or more. ADDITIONAL KEY FINDINGS INCLUDE: STATEMENT TOTAL GEN Z MILLENNIALS GEN X BOOMERS SILENT I have poor or no understanding of credit and personal finance 12% 18% 14% 12% 7% 0% I want to know more about credit and personal finance 66% 80% 79% 63% 48% 47% My limited understanding of credit and personal finance has led me to make financial mistakes.   60% 71% 70% 61% 44% 24% Financial mistakes I’ve made due to my limited understanding of credit and personal finance have cost me:   $5K or more   37% 29% 38% 43% 33% 38% $1K or more   60% 58% 63% 64% 52% 63% $10K or more 23% 12% 22% 31% 24% 38% I learned about credit and personal finance:   Through online research 32% 25% 36% 35% 27% 32% In school, college or community classes 33% 35% 26% 35% 35% 38% From a parent of family member 36% 31% 30% 38% 42% 47% Social media in some form 30% 52% 47% 24% 7% 0% I believe personal finance should be a required course in high school. 78% 72% 72% 81% 85% 88% I believe access to credit plays a significant role in my overall financial health. 80% 77% 82% 81% 78% 88% Bridging the Knowledge Gap These statistics underscore the importance of ongoing financial education. It's evident there's a strong desire among individuals, especially younger generations, to enhance their understanding of credit and personal finance. However, without adequate knowledge, many are susceptible to making costly financial mistakes. Navigating the mainstream financial system has its complexities, and if consumers don’t have a baseline understanding, it can be overwhelming. At Experian, we're committed to bridging this knowledge gap and empowering individuals to take control of their financial futures. We offer a range of free tools and resources designed to educate and empower consumers, including: Free Credit Reports: Gain insight into your credit history and monitor your financial health with a free copy of your Experian credit report and FICO Score®[1]. You can access these through our free mobile app or our website. Credit Monitoring: Stay informed about changes to your credit report and receive alerts about potentially fraudulent activity as part of our free Experian membership. Educational Resources: Check out our official credit advice blog, Ask Experian, where you'll find answers to common questions and expert advice on credit-related topics. Experian Boost®: Take advantage of this innovative tool to potentially improve your credit scores by adding positive telecom, utility, and other payments to your credit file.[2] Experian Go™: If you're new to credit, our mobile app offers a free membership to help you establish and build credit responsibly. Join Us in Celebrating Financial Literacy Month I also encourage consumers to join Experian’s weekly #CreditChat hosted by @Experian on X with financial experts every Wednesday at 3 p.m. Eastern time. In recognition of Financial Literacy Month, consumers can learn personal finance basics from experts each week on topics, including budgeting, savings, credit and debt, and more. Survey Methodology Experian commissioned Atomik Research to conduct an online survey of 2,005 adults throughout the United States. The makeup of the sample is representative of the U.S. population based on national census data regarding demographic variables such as gender, age and geographical regions. The margin of error for the overall sample is +/- 2 percentage points with a confidence level of 95 percent. Fieldwork took place between March 17 and March 21, 2024. [1] Credit score is calculated based on FICO® Score 8 model, unless otherwise noted. In addition to the FICO® Score 8, we may offer and provide other base or industry-specific FICO® Scores (such as FICO® Auto Scores and FICO® Bankcard Scores). Your lender or insurer may use a different FICO® Score than FICO® Score 8 or such other base or industry-specific FICO® Score (if available), or another type of credit score altogether. Learn more. [2] Results will vary. Not all payments are boost-eligible. Some users may not receive an improved score or approval odds. Not all lenders use Experian credit files, and not all lenders use scores impacted by Experian Boost®. Learn more.

In a world where financial stress affects the majority of adults, it’s easy to feel overwhelmed and isolated. The good news? You're not alone, and there's a way out.   Why it matters: Our recent research sheds light on the prevalence of financial stress among U.S. adults. Nearly 70% of adults feel they have suffered or are currently suffering from financial trauma. This research highlights the urgent need for increased financial education and planning. In addition to job loss, financial fallout from the pandemic, or other economic challenges, a lack of discussion about money growing up and limited access to trustworthy information about finances may be two factors contributing to financial stress: More than half (51%) stated their family rarely or never spoke about finances. This lack of discussion left 43% of those who rarely or never spoke about finances growing up feeling like they never learned about financial planning and 42% stating they never learned to use credit or build their credit scores. 37% of adults are unaware of where to access trustworthy information about financial literacy.   So, how can we alleviate financial stress?   While reducing financial stress will take a multi-faceted approach and will, in many ways, depend on a consumer’s unique financial situation, our survey revealed a common theme: more education would help consumers feel better about their financial situation. A majority (55%) said access to more financial education would help alleviate their financial stressors. In addition, 45% believe establishing a more concrete financial plan for their future would reduce their financial anxieties.   Experian’s free tools and resources Education is central to our mission and we are committed to connecting consumers with tools and financial resources to live more financially empowered lives. If you’re battling financial stress, seeking financial education or working on building a financial plan for your future, here are a few ways we can help: Experian Boost®: Consumers can add positive telecom, utility, video streaming service and qualifying rent payments to their Experian credit file for an opportunity to improve their credit scores by visiting experian.com/boost.[1] Experian Go: Consumers without an established credit history can download Experian’s mobile app and enroll in a free Experian membership to establish, use and build credit responsibly with Experian Go. Experian Smart Money: Earlier this month, Experian released the Experian Smart Money™ Digital Checking Account & Debit Card[2] that embeds Experian Boost. Now it is even more convenient for consumers to use Experian’s feature and improve their credit profile, while also benefiting from an industry-leading suite of financial tools all in one place. Experian’s official credit advice blog, Ask Experian, has answers to common questions, advice and education about credit. Consumers can find additional credit education resources at http://www.experian.com/consumereducation. Free credit monitoring and alerts: consumers can sign up for credit monitoring and receive a free copy of their Experian credit report and FICO Score®[1] monthly at experian.com or via Experian’s mobile app. Experian’s mobile app also offers access to personal finance and credit building tools such as: Industry collaboration is key The onus to overcome financial challenges and stress does not fall solely on consumers. As a financial services community, we have a responsibility to make financial education materials available to consumers. Each of us holds a different piece of the puzzle.   For instance, we’ve long partnered with organizations dedicated to helping consumers navigate and overcome financial challenges, including the National Foundation for Credit Counseling (NFCC).   The NFCC has personalized resources available to help consumers, including 1:1 credit counseling. Consumers can receive one-on-one support from one of over 1,200 certified financial counselors at 250 locations across the U.S. to establish debt relief plans through the NFCC by visiting: https://www.nfcc.org/   By fostering collaboration among various stakeholders, including nonprofits, community leaders, credit bureaus, and other financial institutions, consumers can gain a comprehensive understanding of the different components of the financial system.   Additional key findings include: Methodology Experian commissioned Atomik Research to conduct an online survey of 2,001 adults throughout the United States. Researchers controlled for demographic variables such as gender, age, geographic region, race and ethnicity in order to achieve similar demographic characteristics reported in the U.S. census. The margin of error of the overall sample is +/-2 percentage points with a confidence level of 95 percent. Fieldwork took place between August 22 and August 28, 2023. Atomik Research is a creative market research agency.  1 Credit score is calculated based on FICO® Score 8 model, unless otherwise noted. In addition to the FICO® Score 8, we may offer and provide other base or industry-specific FICO® Scores (such as FICO® Auto Scores and FICO® Bankcard Scores). Your lender or insurer may use a different FICO® Score than FICO® Score 8 or such other base or industry-specific FICO® Score (if available), or another type of credit score altogether. Learn more.   2 Results will vary. Not all payments are boost-eligible. Some users may not receive an improved score or approval odds. Not all lenders use Experian credit files, and not all lenders use scores impacted by Experian Boost®. Learn more.   3 The Experian Smart Money Debit Card™ is issued by Community Federal Savings Bank (CFSB), pursuant to a license from Mastercard International. Banking services provided by CFSB, Member FDIC. Experian is a Program Manager, not a bank.

As people around the country prepare to celebrate Fourth of July, our newly released research shows many Gen Z and millennial consumers are longing for more financial independence from their parents.  Why it matters: more than half of Gen Zers and millennials are still financially dependent on their parents. And many don’t feel good about it – with two-thirds saying they feel ashamed when asking their parents for financial support. For many, having an established credit history is key to feeling more financially independent. Additional survey highlights include: StatementGen Z(Ages 18-26)Millennials(Ages 27-42)TotalI am somewhat or very financially dependent on my parents61%47%54%I feel ashamed when I have to ask my parents for financial support62%70%66%I do not consider my parents to be good financial role models28%27%27%Having an established credit history is important to being less financially dependent on my parents77%84%80%I have a hard time saying no to myself when making impulse purchases58%56%57%I am considering cutting down on my online entertainment subscriptions to save money58%55%57%I prefer to spend money on life experiences (like traveling, concerts, etc.) now rather than saving for retirement63%59%61% In addition to limited experience with credit, Gen Z and millennial spending habits may be another factor causing them to rely on parents for financial support. More than half (57%) say they have a hard time saying no to themselves when making an impulse purchase for something they want but don’t need. This is a struggle I can relate to. It’s become easier than ever to purchase what I want, when I want it, right from my phone. When I catch myself doing this, I pause, and I ask myself if this purchase is a need or a want. That quick check-in really helps to curb my impulse spending. Credit can be a financial tool to help us achieve many of the things we want in life, including financial independence from our parents. We have resources available to help consumers lead more financially empowered lives. Our goal is to connect consumers with tools and education to help bring financial power to all. Experian’s free tools and resources If you’re looking to save money, build or improve your credit and be more financially independent, I encourage you to take advantage of Experian’s free tools and resources, including: Reading Experian’s savings blog post with nationally-recognized consumer finance and budgeting expert Andrea Woroch about how to keep more money in your pocket  Watching the “In My Bag” Financial Health Video Series featuring actress-singer Coco Jones for savings tipsJoining Experian’s #CreditChat hosted by @Experian on Twitter with financial experts every Wednesday at 3 p.m. Eastern timeSigning up for Experian Boost™[v], a free feature that enables consumers to add positive payment histories for telecom, utility, video streaming services as well as rent directly to their Experian credit file for a chance to potentially improve their FICO® Score instantlyLearning how to build and protect your credit with Experian’s Credit Essentials for Everyone flipbook and find additional credit education resources at http://www.experian.com/consumereducation. Find additional money-saving resources from Experian by visiting Experian.com/savings Survey methodology Experian commissioned Atomik Research to conduct an online survey of 2,008 adults between the ages of 18-42 years old throughout the United States, with even distribution between Generation Z (N=1,005) and millennials (N=1,003) participants.  The margin of error is +/- 2 percentage points with a confidence level of 95 percent.  Fieldwork took place between March 31, 2023, and April 4, 2023.   Atomik Research is an independent, creative market research agency.    [v] Results will vary. Not all payments are boost-eligible. Some users may not receive an improved score or approval odds. Not all lenders use Experian credit files, and not all lenders use scores impacted by Experian Boost®. Learn more.

I don’t know about you, but the importance of a good credit score wasn’t something talked about around my family’s dining room table growing up. I knew the value of a dollar and the importance of saving and budgeting, but I didn’t realize how many things I’d want in life would depend on having an established credit history. It wasn’t until I went buy my first car that I realized just how important credit can be. I had been using credit, but I wasn’t using it as a tool that could work for me. In fact, in this instance, my credit score was working against me. Thankfully, my boyfriend at the time (and now husband), co-signed on my auto loan so I could get a better interest rate. This experience served as the wakeup call I needed to prioritize improving my credit and overall financial health.   I know my story is similar to many others. In fact, our recent research shows 77% of millennials and Gen Z consumers are striving to be more financially literate and nearly 80% are actively trying to increase their credit scores. Just as I was, these consumers are hungry for knowledge and 69% are actively seeking trusted resources for personal finance information. I’m thankful to work for a company that puts consumers at the heart of everything we do. Education is central to our mission and my job is to educate consumers about the tools and resources we have available to help bring financial to all. Talk about coming full circle!                                                                       So, if you’re looking for ways to improve your financial health, here are a few quick tips: Get engaged: Many people think checking their credit report will hurt their credit scores, but this is not true. This is one of the most common myths about credit reports. You can, and should, check your credit report regularly. This is one of the best ways to understand where you stand from a credit perspective. You can get a free Experian credit report and FICO® Score once a month through our mobile app. You can also get a free credit report from each of the three credit reporting agencies by visiting AnnualCreditReport.com. Use the tools available to you: There are a lot of helpful tools available today that weren’t even just a few years ago, including Experian Boost and Experian Go. Experian Go makes it easy for people with a limited or nonexistent credit history to establish, use and grow credit responsibly. And with Experian Boost, you can self-report your cell phone, utility, telecom, and video streaming service payments directly to your Experian credit report for an opportunity to instantly improve your credit score. Seek trusted resources: In this age of information overload and social media, it can be hard to find trusted sources of personal finance information, but we’re here to help. You can find answers to common questions by joining our weekly #CreditChats on Twitter or by visiting our Ask Experian blog. We also have free resources available at www.experian.com/consumerseducation. Avoid making mistakes with lasting financial impact: I know, I know. This can be easier said than done, but it’s an important consideration to protect your financial health. There are many times in life where it’s OK to learn by making mistakes, but credit and personal finance are not a time you want to do that if you can avoid it. If you’re using credit, make sure you have a plan for paying the debt you owe. Credit can be a financial tool, but debt is a financial problem. Make sure you understand your needs vs. your wants and try to keep your balances as low as possible. As the saying goes, knowledge truly is power. I know this to be true from experience and our research shows a better understanding of personal finance would make 75% of Gen Z and millennials feel more optimistic about their situation. This is good news as there are many easy steps consumers can take today to feel more educated and empowered. Getting engaged with your credit report and finding the right tools and resources are some of the best ways to protect your financial health in our current environment and beyond.