Experian
Definition and meaning of Experian in real estate.
Experian is one of the three major credit-reporting bureaus in the United States that collects and manages consumer credit information. Lenders use Experian credit reports and credit scores to evaluate a borrower's creditworthiness during the mortgage application process.
In more detail
The company aggregates financial data such as loan payment histories, credit card balances, public records, and collection accounts. This information is compiled into a credit report and used to calculate a credit score, typically a FICO score, which represents a consumer's credit risk. Mortgage lenders pull reports from Experian, Equifax, and TransUnion to verify a home buyer's credit health before approving a loan.
The buyer's interest rate and loan terms are heavily influenced by the information found in these credit reports. Home buyers should check their Experian credit report months before applying for a mortgage to correct any errors.
Key facts
| Category | Mortgages & Financing |
|---|---|
| Also known as | Formerly known as TRW Information Systems & Services |
| Who uses | Mortgage lenders, banks, landlords, and insurance companies |
| Watch out for | Errors on your credit report that can lower your score and increase loan costs |
A mortgage lender reviews an applicant's Experian credit report to verify that they have paid all their credit cards on time for the past two years.
Frequently asked questions
How can I correct an error on my Experian credit report?
You can file a dispute online through Experian's website, providing documentation to support your claim, and the bureau must investigate within thirty days.
Why is my Experian credit score different from my Equifax score?
Scores can vary because lenders do not always report accounts to all three bureaus, or because the bureaus may use slightly different scoring models.