Who doesn’t like low monthly payments? Unless you are lucky enough to buy a car outright, most consumers would agree that when making any large purchase, one of the goals is to keep the monthly payments as low and affordable as possible. Whether it is providing a large down payment, extending loan terms or securing the lowest interest rates, keeping costs down is a number one priority (at least in my household). As it turns out, Experian Automotive’s recently released State of Automotive Finance report showed that very thing. The report found that the average loan terms for a new vehicle jumped to an all-time high of 65 months, the average interest rate for new and used vehicle loans dropped and the average monthly payments dropped versus the same time period in Q4 2011. The report also showed that the average loan amount for a new vehicle was $26,691 in Q4 2012, up $272 from Q4 2011, while the average used vehicle loan was $17,629 in Q4 2012, up $239 from Q4 2011. However, while consumers are taking out larger loans, lower interest rates and longer loan terms for new vehicles helped bring down the average monthly payments. For example, the average interest rate for a new vehicle loan in Q4 2012 dropped to 4.36 percent, from 4.52 percent in Q4 2011, while the average interest rate for a used vehicle loan dropped to 8.48 percent, from 8.67 percent in Q4 2011. Additionally, the average monthly payment for a new vehicle dropped from $468 in Q4 2011 to $460 in Q4 2012. More consumers also were able to obtain financing in Q4, as average credit scores for both new and used vehicles dropped. For new vehicle loans, the average consumer credit score was 755 in Q4 2012, down six points from Q4 2011. For used vehicle loans, the average consumer credit score dropped to 665 in Q4 2012, down five points from Q4 2011 For more information on this report and other automotive-related insights, please visit ExperianAutomotive.com. Photo: Shutterstock

There’s a lot of commentary in the press today as a result of a report the Federal Trade Commission issued this morning about the accuracy of credit reports. This gives me the opportunity to share some insight into Experian’s business and how we actively manage the integrity of our data. After thoroughly reviewing the FTC report issued today, we believe it confirms that consumer credit reports are predominately accurate and serving lenders and consumers well. The report shows that the vast majority of errors on credit reports have no bearing on credit scores, for example outdated information on a consumer’s phone number or address. About 2.2% of reports contained an identified error that shifted consumers to a more favorable lending tier when the data furnisher corrected the inaccuracy. That said, Experian is not satisfied with this result and we continue to work toward ensuring credit reports are 100% accurate.  We take all errors seriously, and invest millions of dollars every year in ways to maintain the integrity of our data by updating our systems to keep data as fresh and accurate as possible. Experian manages information on 220 million consumers and 25 million businesses here in the U.S. There’s no question that’s a challenging job, but one that’s the cornerstone of what we do and therefore critically important. Given the immense significance of credit data in the lending process, we constantly invest the time and resources to improve the integrity of our data, keeping it as fresh and accurate as possible. Credit data powers lending, commerce and our economy, and enables consumers to have access to reasonably priced credit to get the things they need to live a productive life. Lenders need accurate data so they can make objective lending decisions, and consumers should reasonably expect that the information reported about them is an accurate description of how they have handled their credit obligations. All participants in the credit and lending process, including Experian, bear a responsibility to ensuring credit reports are accurate to help keep this process balanced, harmonious and thriving for everyone. Other research on credit report accuracy has also been conducted and published. The Policy and Economic Research Council (PERC) issued the results of its study in May 2011 (PDF); after extensive scientific research, it found that consumers were negatively affected less than one percent of the time by an error in their credit report. Further, the Consumer Financial Protection Bureau (CFPB) issued a report (PDF) that analyzed credit scoring models and found that between 1.3 percent and 3.9 percent of all consumers disputed information on their credit report. Experian’s comments on that report are here. Maintaining Integrity of Our Data The illustration below provides some context on the size of our credit databases. Our goal is to maintain the massive amounts of data flowing through the credit reporting system and ensure credit reports are 100% accurate. Admittedly, this goal has not yet been achieved. We still have work to do, and we invest millions of dollars every year in ways to maintain the integrity of that data by updating our systems to keep it as fresh and accurate as possible. Experian maintains an inventory of more than 400 data quality rules that are customized to the unique needs of clients. Each data furnisher’s submission is checked by these rules to make sure the data is historically consistent and logical before it is loaded to our database. For example, a data furnisher in the auto industry should not be reporting a mortgage account. Our system would catch this, and it would be flagged for one of our data management specialists to investigate. Again, we still have work to do. But we remain vigilant and committed to making improvements. How to Dispute an Error We understand how stressful it can be to find incorrect information on your credit report, especially if the incorrect information is found while applying for credit. Our consumer assistance agents make it a priority to have disputes resolved as quickly and as easily as possible. In fact, to better serve consumers and make sure they have the opportunity to ask questions to understand how inaccuracies occur and how the resolution process works, our consumer assistance center established our “Stop the Clock” program. Instead of measuring the success of our customer service by the number of calls answered or the speed which those calls are handled, our agents are empowered to provide excellent customer service and spend time with each consumer to make sure their questions are answered and they understand any next steps if needed. To accommodate consumer preferences, we provide options on how consumers can initiate a dispute — either online, by telephone or by mail. Most consumers choose to utilize the online dispute system since it simplifies the process by providing choices for the most common dispute reasons and provides a way to check the status of the dispute during the process. In 1996, the credit reporting industry implemented an online dispute resolution system to drive greater accuracy and efficiency into the dispute resolution process. As a result, consumer disputes are sent to data furnishers online daily rather than relying on written documents sent by mail. Our online dispute resolution systems have been enhanced by numerous technology improvements, such as Live Chat assistance for online consumers which have led to faster dispute resolution times – now averaging 14 days. This is less than half the time allowed by federal law. Consumers should be satisfied that we have an effective dispute resolution process that allows them to correct errors through multiple channels. In fact, the PERC study noted above found that 95% of consumers who went through a dispute process were satisfied with the outcome. Experian also invests in consumer education and financial literacy. We want consumers to fully understand the fundamental credit concepts so they can engage effectively in the credit reporting process and play an active role in ensuring information is accurate and complete. The “Live Credit Smart” website is just one example of Experian’s consumer education outreach. Experian’s Commitment We live in a world with balanced interests, and believe consumers, credit grantors and the credit reporting industry all benefit from playing an active role in the credit system. Without this system in place, credit grantors would not be able to assess risk, credit would be harder to get and more costly, lending would slow and as a result, the economy could stall. We know all consumers rely on the ability to lock into a new mortgage rate, get a retail store card to afford that key purchase, or leave the auto dealer with a new car for your family. We take our role in this process seriously, and as a company, we continually challenge ourselves to exceed the highest standards in the industry, both in managing the integrity of our data and helping consumers understand and manage their credit. The success of our business depends on it. Photo: Shutterstock

As you may have seen, 60 Minutes ran a story on the credit reporting industry tonight, and unfortunately, much of the story was inaccurate and misleading. The focus of the segment was on data accuracy and the results of the yet-to-be released FTC accuracy study. Many parts of the story did not accurately reflect the facts that have been validated by independent third party studies, the industry’s position or Experian’s position. As such, we would like to clarify our industry position and specific allegations about Experian’s practices. The Business of Credit Reporting The core business of credit reporting agencies is ensuring the accuracy of consumer credit files. This helps lenders rapidly and accurately assess the credit risk of individual consumers and assures consumers that credit reports are an accurate reflection of their credit and repayment history. The more accurate our data, the more accurate assessment the lenders can make of consumer risk. Data Accuracy – What You Didn’t See 60 Minutes showed FTC Commissioner Leibowitz saying that one out of 10 consumers might have an error that would lower their score. To clarify, the focus of the study was on "material" errors and according to the FTC’s own study, which the Consumer Data Industry Association (CDIA) commented on, “98% of credit reports are materially accurate.” CDIA also shared with 60 Minutes that repeated studies have shown that despite the fact that billions of individual pieces of data are received and processed each year, the credit reports assembled provide highly accurate assessments of consumer credit history that both businesses and consumers can use to make informed financial decisions. They pointed to the work done by the Consumer Financial Protection Bureau who looked at the issue of credit accuracy last December. Their analysis found that only between 1.3% and 3.9% of consumers disputed information in their credit report that they believed was in error. Even that number may overstate the number of actual inaccuracies, since the study did not indicate how many of the disputes were the result of an actual error, instead of mere requests to update information or the result of dispute requests from fraudulent credit repair companies who attempt to scam consumers into disputing accurate data. They also highlighted a recent study concluded by the Policy and Economic Research Council that found only one-half of one percent found an error that would cause the consumer to pay a higher price. These studies also showed 60 Minutes that consumers who use the dispute process are generally satisfied with the results and that credit bureaus are handling disputes in a timely manner. In fact, the Policy and Economic Research Council study found that 95% of consumers were satisfied with the outcome of their disputes. Experian’s Management of Dispute Resolution 60 Minutes interviewed three former Experian employees on how they allegedly handled dispute resolutions. As we informed 60 Minutes, these are the details about the important process we employ to manage disputes: “We cannot speak to the motivation of the statements attributed to former Experian employees, particularly as the comments are out of context and simply not reflective of the way Experian runs its business. We can say without question that Experian is focused on providing the highest quality services to consumers. That commitment is reflected in consumer surveys in which 95% of consumers are satisfied with the results of their dispute requests. In addition, Experian does have procedures where its agents can and do question dispute responses directly with data furnishers. Our agents are trained to be proactive when considering information submitted by consumers; they do in fact have the ability to include supporting information provided by the consumer with each dispute. Experian does drive for efficiency in its processes in full support of consumers' needs for speed in resolving their issues. Importantly, however, our agents are empowered to resolve consumer disputes incorporating the highest quality and customer service without time parameters. Regarding the former employee’s comment that “he could not question or investigate a furnisher’s response,” that is simply not true. We utilize a specialized platform, created by our industry and mandated by federal law, for our agents to effectively communicate with data furnishers when processing disputes. The document that the agent reviews includes both the consumer’s dispute as well as the data furnisher’s response. If the agent feels that the response is unclear, they are empowered to phone verify the response. This has been our agents’ process for many years. Consumers need speed in resolving their disputes, and we direct our efforts toward that goal. We complete dispute processing in 14 days on average, well below the required 30 day turnaround required under federal law.” Accusations of Breaking the Law Among the glaring errors, Ohio Attorney General Michael DeWine stated that companies in the industry are in violation of the Fair Credit Reporting Act. This statement demonstrates both a misunderstanding of the law and the efficacy of our dispute systems. Experian is in full compliance with all relevant laws and regulations. And, from an industry perspective, Federal courts have found no violations on multiple occasions. Further, Congress directed the Federal Trade Commission to conduct a year-long review of the dispute process and they did not find any violations of law. This industry is under continuous scrutiny, but we at Experian do not let that deter us from our commitments. We know there is always more work to do to make the system better, and rest assured, this is core to our commitment. We have a long history of doing what’s right for the consumer. I would invite you to visit “Our Commitment” to learn about how we approach data accuracy, customer service and consumer education.

As the global leader in the credit business, it’s our responsibility to assist lenders in managing consumer credit risk, and importantly, to empower consumers to understand and responsibly use credit in their financial lives. These responsibilities require a commitment – a commitment from us to play a leading role in helping consumers understand the fundamentals of credit management and how they can benefit from this growing marketplace reliant upon credit. To do this, we continually invest in processes and products that help consumers throughout their credit journey. Experian has created a long-standing culture of commitment to evolve with the changing marketplace and demands of consumers (and the credit industry). We have a proven track record of continual improvements to our systems over the years, including: We’ve invested millions of dollars annually upgrading our systems and processes in pursuit of “error-free” data; We were the first credit reporting agency (CRA) to add rental payment history to credit reports; We empowered our call center operators to stay on the phone with consumers as long as it takes to answer their questions; and, We were the first CRA in the U.S. to launch a nationwide financial education campaign. These are just a few examples – and while we are proud of them, we are not sitting idle and resting on these efforts alone. We are constantly striving to make our data as accurate, complete and current as possible to service the needs of consumers and lenders. We know there is always more work to do to make this system better, and rest assured, this is core to our commitment. The world of consumer credit is evolving, and it’s up to Experian (and the industry) to continue looking at ways to make it better. This is a business – but we realize that consumers are at the core of why we are in business in the first place. We are dedicated to helping consumers throughout their journey in this fast-changing world of consumer lending. This is our culture. This is our commitment. I invite you to hear directly from our employees and our partners about our culture and our commitment at www.experian.com/ourcommitment. Photo: Shutterstock

As of 2011, the Hispanic population comprised 16.7% of the United States population, the largest minority group following African-Americans. In addition, 20.3% of U.S. households speak a language other than English. Recognizing the need for expanded financial resources to the Hispanic community, Experian provided a generous grant to translate the NFCC’s MyMoneyCheckUpTM tool into Spanish. The resource provides consumers with a means of evaluating four key areas of personal finance: budgeting and credit management, saving and investing, planning for retirement and home equity. The tool is now available in Spanish at MiAyudaFinanciera.org and Debtadvice.org. “Experian is pleased to work with the NFCC Member Agencies in helping families improve their financial capability and in making this valuable tool available to a wider audience,” said Maxine Sweet, Experian vice president of public education. “We have a shared goal of helping everyone learn to live credit smart. That starts with a clear understanding of your financial position and having readily accessible tools to help guide your future.” Experian has supported the NFCC’s outreach from its earliest days, with representatives previously serving on its Board of Directors, Advisory Council, Education committee and the boards of member agencies across the nation. We recognize the valuable role of the NFCC and its member agencies in helping consumers recover from debt and that they share our passion for educating consumers to live credit smart. To learn more about Experian’s financial education resources, please visit LiveCreditSmart.com. Photo: Shutterstock

Thanks to the new online tools and services found at SSA.gov, you no longer have to wait on the phone or in line at the Social Security Administration (SSA) to access your benefits. Today, vital financial information such as your recorded earnings; social security benefits (or expected benefits), and disability and survivor benefits are instantly accessible online. The SSA recently announced the online “My Social Security” account, a tool that provides access to benefit verification letters and statements. Signing up for an account is easy, free and secure. Simply visit SocialSecurity.gov/myaccount to create a unique username and password. You will then be asked a series of questions provided by Experian to verify your identity and ensure secure access to your account. At this point, your account is fully set up and you can check your information as many times as you want, free of charge. This is important because, much like balancing your checkbook, regularly checking your online social security account is key to making informed financial decisions. Since its announcement, thousands of people a day have been checking their online account. Take charge of your financial planning and create an online “My Social Security” account to check your statement today. Photo: Shutterstock

Email marketing continues to be the hub and driving force in cross-channel integration as consumers are becoming more vocal and more demanding with what they expect from their favorite brands. Today, Experian Marketing Services released findings from its email market survey that addresses acquisition and engagement tactics email marketers use in tackling these challenges head-on. Email strategies often act as connectors to Website, mobile, social and in-store channels. To provide deeper industry insight and help marketers better understand how leading brands are using specific email marketing tactics, Experian Marketing Services surveyed email marketers across eight verticals about their email-marketing initiatives, including their strategies for subscriber acquisition, mobile and social marketing, testing and creative design. “We are seeing more email marketers testing new engagement strategies to expand their reach into other marketing channels,” said Peter DeNunzio, general manager at Experian Marketing Services’ CheetahMail. “Insights from this market study not only confirm that email is still a very strong performer, but it is also a spearhead in the progression towards true cross-channel optimization.” Fifty-three percent of respondents represent multichannel retailers — companies that have both brick-and-mortar stores and ecommerce sites. These survey results provide benchmarks on which marketers can gauge their own programs, or use as a factor when deciding to implement new tactics. Key insights in this study include: 44 percent of total opens occur on mobile devices 52 percent of marketers have used animated gifs in their email campaigns Marketers are seeing strong survey completion rates, regardless of offer Email is still a strong performer as a generator of both Website traffic and revenue Email marketers are testing subject lines and creative more than any other factors 78 percent of brands use sales associates to collect email addresses Download the study here and receive deeper insight on strategies marketers are using for subscriber acquisition and engagement. Photo:  Shutterstock

In today’s ultra competitive world, every organization is doing what it can to not only reach new customers, but, some could argue more importantly, to hold on to the ones they already have. In the recently released Loyalty and Market Trends Report by Experian Automotive, we looked at Automotive Loyalty at the brand, model and corporate level to see which auto makers were the most successful at keeping their customers coming back for more. Drum roll please … our analysis found that Ford took the top spot in Brand Loyalty* overall and that the Ford Fusion and the Ford Flex took the top two spots for brand loyalty at the model level during Q3 2012 (surpassing the Q2 2012 model loyalty leader Chevrolet Sonic). “Ford continues to perform exceptionally well in brand loyalty, with a range of products that are getting customers back to the showroom again and again,” said Jeffrey Anderson, director of consulting and analytics for Experian Automotive. “Loyal customers provide a ready-made source of sales and constitute an important element of maintaining or expanding market share and profitability.” Overall, Ford had seven models in the top 10 for brand loyalty. Other Ford models in the top 10 included the Ford Edge, Ford Five Hundred, Ford Fiesta, Ford Escape and Ford Focus. The other top 10 finishers include the Chevrolet Sonic, Kia Forte and Cadillac DTS. When looking at the overall brand level (or when the owner of a certain brand returned to market to buy the same brand of car regardless of the model), the analysis found that Ford and Toyota maintained the top two spots, and Kia and Hyundai moved into the third and fourth positions, surpassing Honda. In regards to Corporate loyalty, Toyota, GM and Ford hold the top three spots, with Hyundai, Honda, Chrysler, Subaru, Nissan, Mercedes-Benz and Volkswagen rounding out the top ten. The full report also highlighted several other areas of the Auto industry including registration trends, market share shifts and changes in the average vehicle age. All of this information will be presented in a free webinar on Jan. 23 at 11 a.m. Pacific/1 p.m. Central/2 p.m. Eastern. If you would like to attend the event, please visit www.ExperianAutomotive.com to register. Experian Automotive also will be tweeting highlights from the report during the Webinar on Twitter @Experian_Auto using #EXPAuto. If you can’t make the live event, a recording will be available on the site for download. *To measure loyalty, we looked at vehicle owners and their subsequent vehicle purchase. For example, if you owned an Acura, then purchased a Honda, you would be considered Corporate Loyal, but not Brand Loyal. To be Brand Loyal, you need to buy another Acura. Photo: Shutterstock

This guest post is from Benjamin Feldman (@BWFeldman), writer and content strategist at ReadyForZero.com, a company helping people get out of debt. At the beginning of this year, I had several thousand dollars in credit card debt and I was ready to pay it off. But I knew that I needed to cut down on my spending in order to have enough money left over to start paying down my credit card balance. So I did some research and started finding ways to cut expenses. One of the things I realized is that your fixed expenses – the ones that seem to be locked in – like your auto insurance and rent, often have some flexibility after all. Below are some tips I’ve found for reducing those fixed expenses: 1. Renegotiate Your Cell Phone Plan When it comes right down to it, we pay a lot for our cell phones – not always for the phones themselves, but for the monthly calling plan (and data plan, in most cases) that comes with them. These companies count on the fact that we sign up for a plan when we’re excited about our new phone and then simply pay the bill every month – which means a steady cash flow for them. But what if you need to get out of debt or simply want to save more of your take-home pay each month? If that’s the case, you should try to get that cell phone bill lowered. First, look at your most recent statement and see what you’re actually paying for. It’s possible your bill includes things you signed up for but are no longer using, like an extended data plan, unlimited text messaging, or an additional phone line. Decide what level of service you actually need, and then research how much that would cost if you purchased it from another provider. When you find the best rate, call up that company and ask if they can guarantee that rate while waiving your cancellation penalty fees from your current provider. If they can, then you’re in business. But first call your current provider and see if they can match the offer – in many cases, they will because they don’t want to lose you as a customer. 2. Cut Your Cable Bill… Or Drop It Entirely Another monthly expense that we all seem to have is the good old (actually not so good and not so old) cable bill. But you’re stuck with that one, right? Wrong. You can use similar tactics described above to lower the cost of your cable bill. Even if there are no competitors in your area, you can still use leverage you have as a loyal customer to reduce your rate. That’s because there are now so many alternative ways to get TV shows and other entertainment online. Call up your cable company and tell them you are thinking about switching to Netflix or Hulu instead of being a cable subscriber. See if you can get a discount for 6-12 months or if they can take certain charges off your monthly bill – especially if you have ‘extra’s that you don’t need, like a second cable box or premium channels that you rarely watch. And if you need more details on alternatives to cable, check out this post on the ReadyForZero blog. 3. Save Money on Your Auto and Renters/Home Insurance We’ve all seen the ads on TV telling us to look for better rates on auto insurance. It turns out, that’s not a bad idea. Keep in mind, that you can often save more with the company you’re currently with (due to their loyal customer program). However, that doesn’t mean you should assume that you already have the best deal. Find your statement and see how much you’re paying right now. Also, make sure you understand what type of coverage you’re paying for. Then start calling around and find out which company may have a lower rate – for the same coverage. If you can get a lower rate quoted to you, take that back to your current insurance provider and ask if they can match it. Also, make sure you ask them about all the possible discounts that might apply to you, such as the one for buying your auto and home (or renter’s) insurance from the same company, the good driver discount, the family discount, etc. 4. Get a Good Workout for Less You probably want to be healthy and get your recommended amount of exercise; but who says you have to pay an arm and a leg for an expensive gym membership? Especially when free and low-cost memberships exist, it’s worth downsizing or eliminating your gym membership. If your workouts consist mostly of running on a treadmill or doing sit-ups and push-ups, you can probably do without a gym membership. On the other hand, if you need to use certain exercise machines only available in a gym, look around for discount coupons available at stores like Costco or online that can cut your monthly gym costs in half. 5. Try to Lower Your Rent This one will be tough for some people – especially if you live in an apartment that is managed by a corporate leasing office. However, if you have a landlord that you personally know, you might be surprised that you can find ways to get a discount on your rent. You might ask if you can help maintain the plants and landscaping around your apartment or help with do-it-yourself projects like repainting worn exterior walls in exchange for a reduced rental rate. I’ve seen instances when this kind of agreement worked quite well. Even if you have a mortgage, there are ways to lower your monthly housing costs. For one thing, if you have a guest bedroom that is not being used, you could consider finding a renter. With any luck you might find a respectful and quiet person whose monthly rent payment will help cover a significant portion of your mortgage. You can also research whether refinancing would help to lower your payment, but make sure that doesn’t force you to pay more interest in the long run. I hope these tips will help you lower your fixed expenses and get you on your way toward achieving your financial goals. If you want more tips on how to save money and streamline your budget, check out our Budgeting Tips resource center. Or, if you’re trying to get out of debt by the end of this year, take a look at our Student Loan Debt and Credit Card Debt resource centers. No matter what, stay motivated and keep moving forward! Photo: Shutterstock