Is Experian safe? Here’s what you should know

If you’re starting to build your credit score, you’ve probably heard of Experian, either online, through the news, or maybe you’ve even received something in the post from them. However, you may be wondering what Experian is, and whether it’s safe for them to have your information. Here, we’ll explain what exactly Experian is, as well as whether you can trust them with your information. Let’s get right to it!

What is Experian, exactly?

Experian is a global information services company, but that’s not how most people think of them. To you or me, Experian is most commonly known as a credit reference agency (CRA). Experian is one of three major CRAs in the UK, alongside Equifax and TransUnion.

Credit reference agencies like Experian collect and maintain financial data on just about everyone who has a financial footprint. They collect data from banks, credit card companies, utility providers, public records, and more. Experian then uses that data to create credit reports that summarise your credit accounts (like credit cards, loans, and overdrafts), your payment history, and various public records. Then, when you apply for a credit card, flat, or loan, the credit card company, landlord, or lender might review your credit report to determine whether it’s a good decision to lend to you.

Is Experian safe?

Broadly speaking, Experian is safe. Like other CRAs, it operates under stringent rules and is regulated by the Financial Conduct Authority (FCA), which ensures Experian’s compliance with legal and ethical standards, particularly as it relates to data handling and consumer protections.

Some of the security measures Experian and other CRAs use to protect your data include:

• Encrypting it: This ensures it’s safe during transmission and prevents it from being accessed by anyone with nefarious intentions.
• Undergoing audits: Experian and other CRAs like Equifax and TransUnion are regularly audited by third-party organisations. This way, government institutions and consumer watchdogs can verify that your information is receiving the protection it deserves.
• Using fraud detection systems: You’re familiar with this one — any time you’re asked to retrieve a code from your email or phone, you’re ensuring your information is safe. Two-factor authentication systems are just one example of the ways your data is protected from bad actors.

Suffice to say, Experian is as safe as one can reasonably expect an organisation to be, and they have countless safeguards in place to ensure your information is only accessed by those who have permission to do so.

We say Experian is ‘as safe as you can reasonably expect,’ because like most companies that collect such massive amounts of consumer data, they are frequent targets of cybercriminals. However, Experian has not been the victim of a cyberattack in recent years, with their last major breach coming in 2015 and primarily affecting U.S. consumers.

How can you improve your credit score with any credit reference agency

While each credit reference agency has a unique credit scoring methodology, they can all be improved with the same actions. Some basic ways to build your credit score include:

1. Checking your credit report regularly: It’s uncommon for there to be errors on your credit report with any credit reference agency, but checking your report regularly can ensure nothing slips by.
   
   
2. Pay your bills on time: Your payment history is the most important factor that affects your credit score. Prioritising timely payments can help your score improve.
   
   
3. Reduce your debt: Lowering your overall debt can positively impact your score. If you have debt, making and following through on a concrete plan for getting out of debt can give your credit score a significant boost.
   
   
4. Limit your credit applications: If you apply for a line of credit, the credit card company or lending institution will run a hard search on your credit report. That search will be recorded in your credit report and have a small, but negative impact on your credit score. Doing this too frequently can indicate that you’re struggling financially, meaning you’ll be less likely to receive a credit line.
   
   Related read: How long does a hard search stay on your credit report?
   
   
5. Use your credit responsibly: Using too much of your available credit can indicate that you’re reliant on it. Try to keep your credit utilisation to 25% or less of your available credit each billing period.
   
   

FAQs about Experian, credit reports, and credit scores

Got more questions about your credit score with Experian? We’ve got answers.

Does checking your score with Experian lower it?

No, checking your credit score or credit report — with Experian, Equifax, or TransUnion — will not lower your score. When you check your own credit report, you are performing what’s called a soft credit check. Unlike hard credit checks, which have a small, negative impact on your credit score, soft credit checks don’t hurt your score.

Related read: What’s the difference between a soft and hard credit check?

Does your income affect your credit score?

No, your income doesn’t play a factor in your credit score, nor is it included in your credit report. However, it’s important to keep in mind that while your credit score isn’t impacted by your income, your eligibility for some credit products may be influenced by your income and your debt-to-income ratio.

What is Experian’s credit score range?

Experian’s credit score range includes ratings for very poor credit, poor credit, fair credit, good credit, and excellent credit. Here are the ranges for those ratings:

0-560: Very poor

561-720: Poor

721-880: Fair

881-960: Good

961-999: Excellent

Related read: Learn more about what’s considered a poor credit score in the UK

The bottom line on Experian’s safety

Experian, like most global companies, has a number of protections in place to prevent bad actors from accessing your personal financial information. Encryption, two factor authentication, and regular audits help keep you safe.

If you use credit products like credit cards, loans, and pay utility bills, there’s very little you can do to prevent credit reference agencies like Experian, Equifax, and TransUnion from collecting information about you. However, by taking strategic actions, you can ensure that the information they record creates a record of your creditworthiness.

Pave can help you build your credit score too. With our credit builder account, you can establish a consistent payment history by reporting your payments to CRAs, and you can protect your credit score from missed payments with Pave’s bills monitoring feature. Plus, we’ll help you track your progress — Pave is the only app that allows you to see your credit scores from Equifax and TransUnion in the same place*.

If you’re ready to join the hundreds of thousands of people across the UK who’ve started building or rebuilding their credit scores with Pave, download the app today.

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Pave cannot guarantee an increase in your credit score. Some features subject to eligibility. Equifax and TransUnion scores are only available with Pave Plus.

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