Experian Plc Stock Price, News & Analysis

Experian has launched a beta version of Experian Boost to help U.S. renters improve their FICO® Score by reporting positive residential rent payments. This feature is unique as it allows consumers to enhance their credit scores at no cost. Preliminary data indicates up to 66% of users may see an instant score increase, averaging nearly 10 points, with those having thin credit profiles potentially gaining about 14 points. Since 2019, 8.6 million consumers have benefited, with an average score increase of 13 points.

Experian reports significant changes in the automotive financing market, with used vehicle origination increasing to 61.78% of total financing in Q2 2022, up from 58.48% in Q2 2021. Credit unions saw a rise in market share to 25.81%, driven by increased demand for used vehicles due to inventory shortages and rising vehicle costs. Average used vehicle loan amounts climbed 18.66% year-over-year to $28,534. The shift reflects a consumer trend towards cost-effective financing options amidst escalating vehicle prices.

First Mortgage Default Rate Reaches Highest Level Since September 2020

According to the latest data from S&P Dow Jones Indices and Experian, the first mortgage default rate increased by four basis points to 0.42% in July 2022. The composite default rate rose to 0.57%, marking an increase for the eighth consecutive month. Key metropolitan areas such as Miami saw the largest rise at 1.13%, while New York's rate fell to 0.65%. These trends indicate growing risks in consumer credit markets.

Experian has launched Experian Link™, a groundbreaking service that connects consumer identities with payment methods, enhancing online sales while reducing fraud. With $11 billion lost annually due to false declines in U.S. e-commerce, this initiative aims to minimize this financial impact. The tool boasts an 85% match rate for major credit cards, potentially lowering fraud rates to 10 basis points. By integrating this technology, merchants can foster customer trust, streamline transactions, and decrease operational costs.

Jake Wesley Rogers, a breakout pop artist, launches a new video series titled Financial Glow Up in collaboration with Experian. Aimed at promoting financial health, the series showcases Rogers' journey and budgeting techniques as he prepares for his upcoming tour. The first video premieres on July 26 at 1:00 p.m. EST on TikTok and Instagram. This initiative is part of Experian's United for Financial Health campaign, emphasizing education and empowerment in financial matters.

First Mortgage Default Rate Rises

The S&P/Experian Consumer Credit Default Indices report a rise in the composite default rate to 0.53% as of June 2022, marking its highest level since September 2020. The bank card default rate increased to 2.55% and auto loan defaults rose to 0.62%. In major metropolitan areas, Miami saw the largest increase, reaching 0.99%. Notably, the first mortgage default rate is now at 0.38%, up from 0.36% in May 2022.

Experian partners with the National Urban League and Lecrae for the "Protect The Bag Live" event, focused on financial literacy and building wealth in African American communities. Scheduled for July 22, 2022, at the Washington Convention Center, the forum aims to empower attendees with financial insights from experts. This collaboration underlines Experian's commitment to fostering equity and inclusion through financial education, enhancing access to resources for potential homeowners and entrepreneurs. The event reflects an ongoing initiative since 2021 to address the wealth gap.

Born This Way Foundation has teamed up with Experian to enhance Channel Kindness, a platform encouraging youth storytelling about economic experiences and mental wellness. Executive Director Maya Smith emphasizes the need for a supportive community focused on financial wellness. The partnership will highlight significant financial milestones such as college graduation and Tax Day 2023, promoting financial education among youth. Experian aims to empower young people in their financial health, contributing to their overall wellness.