Experian: An Unusual Game with Creditworthiness

Experian, known as one of the three major credit bureaus in the US, sparks interest with its Smart Money debit card offering. While TransUnion and Equifax, the company's competitors, do not have such cards in their portfolios, Experian advertises that this card allows for building creditworthiness—without incurring additional debt. The company uses football player Travis Kelce as a testimonial, promoting the card in a commercial. In the background, the question arises as to whether users of the card can simultaneously expect a positive effect on their Experian credit report. The answer is complicated: the Smart Money debit card operates independently of the Experian Boost service, which enables consumers to improve their creditworthiness by recording regular income payments. This service is also available without the card. Experian Boost is designed to help consumers with limited or poor credit histories by tracking regular payments. The success prospects are mixed: out of 100 users, only 59 see an improvement in their FICO credit scores, with the average increase being 13 points. Despite all the promotional efforts, the question remains whether Experian is truly performing a social good with this or primarily aims to expand its consumer data base. Ultimately, as revealed in a recent ESG report, Experian does provide access to its credit improvement services, but the motivation remains unclear. Boost may help some improve their creditworthiness, but data trading in the background remains a central part of the business model. Consumers should critically evaluate what data they disclose and what product they ultimately are.