Experian Credit Bureau

Experian credit bureau is one of the three biggest American consumer information collection bureaus. Because they are frequently used by potential creditors in determining whether to approve a loan and how much interest to charge, it's a good idea to know something about them.

This page:

    • Describes how Experian credit bureau operates
    • Explains how lenders use Experian's services
    • Gives advice on using Experian to your benefit

How Experian credit bureau works
Experian credit bureau is a data collection company. Their primary purpose is to assess how much of a credit risk an individual is likely to be to a potential creditor.

To do this Experian creates and runs risk assessment models, which accurately predict financial responsibility. Experian then sells this information to credit companies.

A few more important details about Experian credit bureau
Experian credit bureau also functions as a consumer profiler. Each individual's profile not only contains her financial risk to a lender, it also includes a consumer spending profile - a list of products that she is likely to buy. Experian makes a significant amount of money acting as a profiler.

Finally, Experian sells demographic information on consumer buying trends which companies purchase for marketing purposes.

How Experian credit bureau can help you
Experian's primary purpose is selling financial risk information to loan companies like banks and credit card issuers who use it to decide whether to approve a loan or credit card.

However, they also look out for you. Credit report information you suspect to be erroneous is fully investigated free of charge at your request.

Moreover, if you're the victim of identity theft, Experian credit bureau alerts new creditors of your situation. Any new accounts being opened in your name will be subject to further proof of identity.