Credit reporting company Experian now allows users to create their own payment history


Craig Boundy, CEO of Experian North America, joins Yahoo Finance Live to discuss the company’s new program that will allow users to create a credit report, ramp up buy now, pay later and credit outlook today.

Video transcript

[MUSIC PLAYING]

Nearly 50 million consumers have no or limited credit history. Experian has come out with a new tool that allows people to build credit without incurring debt. This is an important topic and here with more is Craig Boundy, who is the CEO of Experian North American. It’s great to have you here with us, Craig. We have to dive into it. The official launch of Experian Go–it actually follows a private pilot program–15,000 people took advantage of it. So what were perhaps the most common bills they used to really boost their credit.

CRAIG BOUNDY: Look, thanks for having me here today. It’s really great to have the chance to talk about such an important topic. You know, today nearly one in 10 Americans, or nearly 28 million people, have difficulty accessing traditional financial products and that means they pay higher interest rates than they merit, that means he can’t take advantage of some of the financial options available to many of us. And Experian Go allows them to create their financial identity for the first time. It is a very simple process to do. And it’s the only place you can do it today. You can create your own financial identity and obtain an Experian credit report. And that then allows you to start adding bills that you pay over time to build up your financial history. These bills can be your utility bill, it can be simple things like you pay for your Netflix account or your gym account, allowing consumers to take control of their own financial situation.

Yeah, Craig, I wonder if you can expand on that a bit because, you know, we’ve heard from a lot of companies that are kind of tapping into this space where particularly young consumers haven’t been able to build credit like they wish. I mean, what do you see in terms of the generational divide? Is it that or is there something more?

CRAIG BOUNDY: I think that’s an excellent question. Honestly, I think today there’s no option for somebody when they, you know, come of age, think of it like that, or communities where people don’t have everything simply could not access these financial products to build their own financial identity and Experian Go allows them to do so. It’s really simple, easy to use, totally free. All you have to do is download the app, add your social security number, take a photo of government ID, and take a selfie that helps us validate that we know it’s it’s you and you’ve created your own credit report. You’ve actually entered the financial ecosystem, if you will. And it’s a simple thing to do, free, and you can do it with Experian. It’s really important to people. And for those 28 million people today referred to as invisible credit, it’s going to make a real difference in their lives.

Craig, that’s also interesting – coming out of this past holiday season, one of the other things people are spending on gifts is shopping. And some of their retail purchases – and there’s a trend of buy now, pay later, more and more used. Some data from Salesforce actually showed that transaction service was up about 40% from 2020. So with all of that in mind, I also think that Experian – you had spoken and announced tools on buy now, pay later before . What do you think consumers will get from being able to build credit in a positive way, even with a service like buy now, pay later?

CRAIG BOUNDY: Yes, thanks for asking. You know, in fact, if we take a step back, this is really part of the core of our strategy, of our mission, which is to help consumers access the financial products that they deserve and so there are several elements to that. Experian Go allows you to create your financial identity. Our Experian Boost product then allows you to add information to your credit report about the positive things you do, for which you deserve credit on your credit score. And then we have this new phenomenon – or a relatively new phenomenon of people taking advantage of “buy now, pay later” services. And they are different from typical debt products like various credit card payments. And so what we’ve done there is build a new specialized office, allow us to track that information in a simple way and represent it accurately to both the consumer and the lenders. And it’s also a first of its kind. So all of these parts come together to show how we help individuals, you and me, get access to the financial products they deserve and give lending institutions a great representation of the risk we represent.

Well, Craig, thanks for coming by this Friday. Craig Boundy, CEO of Experian North America joins us–

Previous Fuel subsidy suspension policy increases Nigeria's credit risk
Next Credit Risk Scoring Software Market Overview, Cost Structure Analysis, Growth Opportunities and Forecast to 2027