Portrait of a credit score superstar

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1 Portrait of a credit score superstar Traits of credit score high performers, a look at new developments in credit reporting Experian and the marks used herein are service marks or registered trademarks of Experian Information Solutions, Inc. Other product and company names mentioned herein are the trademarks of their respective owners. No part of this copyrighted work may be reproduced, modified, or distributed in any form or manner without the prior written permission of Experian.

2 Portrait of a Credit Rockstar What do people with the best credit scores look like? Surveyed five categories of consumers: Super Deep VantageScore 3.0 Six key credit score components Age of accounts Number of accounts Revolving account balances Utilization Inquiries Delinquency 2

3 Age is a virtue Account age Super Nonprime Deep Oldest acct Avg. acct. age Oldest revolving Avg. revolving Newest acct

4 What s in your wallet? # of accounts Currently paid as agreed Carrying a balance Super Nonprime Deep

5 What comes around goes around Revolving accounts Super Nonprime Deep # open credit cards Balance (total in $) 2,648 4,838 6,074 1,

6 Don t push the limit Utilization Super Nonprime Deep Revolving Util. (%) Installment (%)* *Installment non-mortgage paid-down 6

7 Sometimes it hurts to ask Inquiries Super Nonprime Deep No inquires (%)

8 It never pays to be late Delinquency Super Nonprime Deep None (%) days (%) Most recent* *in months 8

9 What s new? Recent activity in credit reporting 9

10 What s in and what s out: changes in credit scoring Collection accounts: VantageScore 3.0: Out paid Still in- unpaid FICO 9: Out paid (less in?) Still in- unpaid 10

11 What s in and what s out: Identity Theft In in a BIG way: Data Breaches 783 breaches in % - Medical/Healthcare 33% - Business 11.7% - Government/Military 7.3% - Education 5.5% - Banking/Credit/Financial *IDTRC Most commonly reported Government Documents fraud 39% Credit Card Fraud 17% Utilities fraud 13% Bank fraud 8% Employment related 5% Loan fraud 4% *FTC Consumer Sentinel 11

12 NY AG Agreement National Consumer Assistance Plan: Cooperative discussions with the New York Attorney General s office Industry plan building on efforts of the national CRAs to improve accuracy and enhance the consumer experience Expanding educational resources on Additional information will be provided to consumers who dispute information including a description of what they can do if they are not satisfied with the outcome of the dispute Enhanced dispute resolution process for fraud victims those with mixed files 12

13 NY AG Agreement (cont d) Data accuracy and quality initiatives: Medical debts not reported until 180-day waiting period to allow insurance payments to be applied CRAs will remove previously reported medical collections that have been or are being paid by consumers Consistent standards reinforced by CRAs to entities that submit data (data furnishers) Data furnishers will be prohibited from reporting authorized users without date of birth. CRAs will reject data that does not comply with this requirement CRAs will eliminate reporting of debts that did not arise from a contract or agreement by the consumer to pay, such as tickets or fines. A multi-company working group will be formed to regularly review and help ensure consistency and uniformity in data submitted by data furnishers. 13

14 NY AG Agreement (cont d) Data accuracy and quality initiatives: Medical debts not reported until 180-day waiting period to allow insurance payments to be applied CRAs will remove previously reported medical collections that have been or are being paid by consumers Consistent standards reinforced by CRAs to entities that submit data (data furnishers) Data furnishers will be prohibited from reporting authorized users without date of birth. CRAs will reject data that does not comply with this requirement CRAs will eliminate reporting of debts that did not arise from a contract or agreement by the consumer to pay, such as tickets or fines. A multi-company working group will be formed to regularly review and help ensure consistency and uniformity in data submitted by data furnishers. 14

15 Experian initiatives already underway In the last two years we have: Upgraded website to make it easier for consumers to dispute online New system to provide documentation through online upload process Added additional agents to enable people to speak directly with a representative Increased bilingual support for our Spanish-speaking consumers Simplified process to upload dispute documents electronically 15

16 Experian Education Resources On the Web Free annual FACT Act credit report Access to free report from each of the three credit reporting companies Experian Ask Experian advice column, sample consumer report, frequently asked questions Credit trends and information to inspire consumers to use credit wisely Electronic versions of our published materials, sample credit report, videos, PowerPoint presentations with talk notes and more. 16

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