Experian

Definition

Experian is one of the three major credit reporting agencies that collect and maintain consumer credit information. They provide credit reports, which are crucial for assessing loan applications and determining interest rates.

5 Must Know Facts For Your Next Test

1. Experian provides credit scores that lenders use to evaluate loan applications.
2. The company tracks payment history, outstanding debt, and the length of credit history.
3. Experian reports can affect interest rates on loans based on the borrower's creditworthiness.
4. Errors in an Experian report can lead to higher costs or denial of loans, making accuracy critical.
5. Experian offers tools and services for consumers to monitor their credit and identify potential identity theft.

Review Questions

• What role does Experian play in the loan approval process?
• How can errors in an Experian report impact a borrower?
• Why is it important for borrowers to monitor their Experian credit reports regularly?

Related terms

Equifax: One of the three major credit reporting agencies that provides consumer credit reports.

TransUnion: Another major credit reporting agency that compiles consumer financial data used by lenders.

Credit Score: A numerical expression representing the creditworthiness of a consumer, based on their credit information.