In this interactive guide, we shed some light on common misconceptions around the role financial data plays in people's lives and how a credit score is constructed. We also explain the concept of your “Data Self” - the version of you out there made up entirely of your financial data - and offer some advice as to how to best work with that “Data Self” so that it’s in the best shape it can be.
Our findings are from consumer research by Censuswide, commissioned by Experian in November 2017, using a sample of 3,000 UK consumers
Each time you interact with the digital world, whether that's through a phone, computer, tablet, or any connected device, you're creating data with your activity.
Personal data means any piece of information that can be used to identify an individual. You create it when you’re exercising, listening to music online, messaging friends or doing anything that involves a smartphone or connected device.
An increasing number of everyday objects are now connected to the Internet, meaning the quantity of data created continues to grow. By 2020, Intel estimates that there will be 200 billion Internet-connected devices on the planet. It might not be long before your fridge, car or washing machine are hooked up to the Internet and generating personal data, (or perhaps they already are).
At Experian we process over 1.5 billion records a year. We’re passionate about data – as a force for good, as a tool to empower and improve people’s lives – but we know it’s not always the most exciting topic for you. That’s why we commissioned research asking the views of 3,000 people in the UK about personal data, with a particular focus on their attitudes to their financial data footprint. In the following sections we’ll talk more about Brits’ attitudes to their personal data, and look in more detail at the financial data that goes to make up a credit report – your Data Self.
Although many people are drawn to researching their online profiles, and those of others, understanding what their financial data says about them does not hold the same appeal. The study found that 24% of people are bored by the topic of financial data and a fifth never talk about their financial data. Some find it confusing (19%); others are fearful of it (9%).
16% of people believe they have no influence on their financial data. That's a misconception. Whether you are looking for a mortgage, planning a family or making any life-changing decision, your financial data matters because it influences what types of deals and offers you can access. While it might sound dull to spend time understanding how to manage your financial data, it can actually be life-changing.
of people are bored by the topic of financial data and a fifth never talk about their financial data.
of people believe they have no influence on their financial data. This is a misconception
We’ve talked about personal data, now let’s look at financial data in more detail. Your financial data is made up of things like your credit history and financial information (credit card balances, phone contracts, mortgages and loans etc.) and it can have a big impact on your life.
You may not know it yet, but there exists another version of you made up of your financial data. Your Data Self. Companies look to your Data Self to help them decide whether to give you a mortgage or whether your payment plan should be accepted.
So, it’s really important when it comes to the big financial events and decisions you face in your life. That’s because it’s used to create your credit report – important information that lenders use to decide whether you can access the services or products you want. (See below “Your credit report and your Data Self”). Your Data Self is constantly evolving, based on your financial behaviour, including your borrowing activity.
Your Data Self is made up of things like your credit history and financial information. It can have a big impact on your life. Companies look to your Data Self to help them decide whether to give you a mortgage or whether your payment plan should be accepted.
Get to know your Data SelfWhen you’re making financial decisions with a partner, you need to understand the link between your Data Self and theirs. The truth is, you only become financially linked to someone when you apply for joint credit or when you open a joint account. These financial associations remain on your credit report until you tell the credit reference agency that the link has ended. So, it’s important to break the link to previous partners with whom you were financially linked.
Understanding and improving your Data Self could make all the difference between getting a ‘yes’ or a ‘no’ from lenders, and could even help you unlock better deals. That’s because lenders' decisions about whether you can afford something are made from the financial data available about you.
Improve your Data SelfImprove your Data Self and increase your chances of getting access to the financial services you want. You can do things like: paying off debt and keeping monthly balances low on any cards, meeting all regular monthly payments, as well as getting onto the electoral roll at your current address.
Checking your credit score on a regular basis is an important step in taking control of your Data Self, as it gives an idea how lenders may view you.
In a nutshell, it’s a number that reflects the likelihood of you paying credit back.
A credit score gives you an idea of how lenders may view your Data Self for a broad range of important services and life essentials such as credit cards, loans, mortgages, car financing and even mobile phone contracts. In essence, it is a number that reflects the likelihood of you paying credit back.
Lenders call upon your Data Self to help them determine whether to approve your credit application
Find out your free Experian Credit Score to give you an idea of how lenders may view your Data Self.
Your free Experian Credit Score1Experian Analytics, as of 26 June 2018
Follow these steps to get your Data Self into shape and ensure it is ready for when you next face a financial decision.
Experian goes to great lengths to ensure that information in your Experian Credit Report is as accurate as possible but it is important to check it yourself. Tell us if an entry is incorrect and we will dispute it for you with the lender. You can also add a notice of correction to your report if you'd like to provide any additional information about its contents.
if you are refused for a loan. Consult this free guidance tool for further information here.
with whom you were financially linked but are not any longer. You will need to ask for a 'financial disassociation' with all three credit reference agencies.
Each lender uses different lending criteria. You can search for credit cards and personal loans with us and we’ll show you your eligibility without damaging your score. Experian is a credit broker, not a lender.†
Paid-for services such as web monitoring help make sure your personal information is protected. Experian CreditExpert alerts you to certain changes on your credit report which could indicate fraud. Subscribers can call our UK based team for help and guidance about how to improve their Experian Credit Score.
† Experian acts as a credit broker and not a lender in the provision of its credit cards and personal, car finance and guarantor loans comparison services, meaning it will show you products offered by lenders and other brokers.
Experian acts independently and although our comparison service shows products for a range of lenders and other brokers it does not cover the whole of the market, meaning other products may be available to you. Comparison services are provided free however we will receive commission payments from lenders or brokers we introduce you to.
Your credit report is used to calculate your Experian Credit Score. Your report brings together data on your previous borrowing over the last six years to give an overview of your credit history - the same information lenders could use when they call upon your Data Self. You can view your statutory credit report here.
I was given lots of information explaining how lenders use credit information and also that lenders often have their own criteria that does not necessarily reflect your credit score. Ray
For more hints and tips on improving your credit score click below.
Learn moreID fraud is the fastest growing crime in the UK4. Given these figures, it is not surprising that 59% are concerned about identity theft and 32% feel concerned about privacy when they think about data5. In fact, 24% of those surveyed had been a victim of an online security breach.
Once fraudsters have access to your personal details they can attempt to take money from your bank account or even take credit out in your name, potentially affecting your finances and your Data Self. Left unprotected and unresolved, your Data Self could be damaged, meaning you may struggle to get credit in the future.
Keeping an eye on your personal details and knowing what's on your Experian Credit Report can help reduce the impact of fraud. A CreditExpert subscription alerts you to certain changes on your Experian Credit Report that could indicate fraud and provides dedicated fraud support and web monitoring to help make sure your personal information is protected.
A few simple habits such as strengthening your online passwords, only downloading apps from reputable stores and maintaining strict privacy settings on your social media accounts can help to protect you from identity fraud. In this Experian guide we've rounded up more advice from the police, the government, ActionFraud, Take 5 and our Experian fraud experts to bring you the dos and don'ts of protecting yourself against identity fraud.
4https://www.met.police.uk/globalassets/downloads/fraud/the-little-book-of-big-scams.pdf
5Censuswide data, commissioned by Experian November 2017, sample of 3,000 UK consumers
Congratulations! You should now have a better understanding of your Data Self, why it matters and how best to control it. Here’s a quick summary in case you missed anything:
Personal data means any piece of information that can be used to identify an individual. You create it when you’re exercising, listening to music online, messaging friends or doing anything that involves a smartphone or connected device. People are naturally curious about what their data says about them. There’s even a name for it - “egosurfing”, which is popular with nearly three quarters (72%) of the population.
While 24% of people are bored by the topic of financial data, it can actually be life-changing. Taking a more proactive approach to managing it is vital for planning for the future, and thinking about key life moments in life, such as buying a new car, having a baby, paying for university fees, or retirement.
Your Data Self is made up of things like your credit history and financial information. While we keep this information secure for you and strictly control who can access it, it can and does regularly impact your life. For example, lenders look to your Data Self to help them decide whether to give you a mortgage, or whether your payment plan should be accepted.
There's plenty you can do to get your Data Self into shape and improve your chances of getting access to the credit or financial services you want. Actions include: checking your credit score, paying off debt and keeping monthly balances low on any cards, meeting all regular monthly payments and checking you are on the electoral roll at your current address.
ID fraud is the fastest growing crime in the UK. Protect your Data Self by keeping an eye on your personal details and knowing what's on your Experian Credit Report. Paid-for services such as web monitoring help make sure your personal information is protected. CreditExpert alerts you to certain changes on your credit report that could indicate fraud.
We’re here to help you unlock the opportunity that your Data Self can create. We offer different products to help you understand your credit situation and how you can improve it.
Through this guide, we hope to have shown you that data can empower, helping you to take control of your personal finances, so you can make the best choices for your future. Is it time you got to know your Data Self a little better?
To inspire you, here are some people who’ve got to know their Data Self and how it’s helped them:
"I have been through a few rough years financially and emotionally and ended up with an extremely low score I have been slowly trying to rebuild my life and my score. On a few occasions I have phoned and asked for advice and help and been greeted with happy helpful and understanding non-judgemental call handlers. I'm glad to say now with their help I am well on the road to recovery. Thank you to you all for caring." Julie
“Thanks to Experian I can monitor and receive by email information about my credit score and made me understood how credit score is rated and how actually works in order to raise my credit score. If when I registered with Experian my credit was “fair” now thanks to you guys I’ve been able to get proper advice and build my score to “good” (almost “excellent”). Now I can look forward to apply in the future for car loan or mortgage without having fears. Thank you so much Experian!” Sergiu Dan
“I use your services for anti fraud and not for credit ratings. Having been a victim of fraud your alerts are a lifeline and provide peace of mind. I rely on your services to provide me with any info I need to take action on.” Jane
“I was given lots of information explaining how lenders use credit information and also that lenders often have their own criteria that does not necessarily reflect your credit score.” Ray
“I used Experian for quite a long time to ensure our credit ratings were good to move forward after being in debt for a long time. I took note on how to do things as we were planning at one stage to buy our house. I have a photo of the time my rating actually went to 999 - hard work but helped by your advice. Thank you.” Sue
“You provide up-to-date and accurate information about my personal financial circumstances. Over the past few years I have by monitoring and reviewing my credit score managed the score to over 900 and kept check on and managed my lines of credit. I did not appreciate the number of organisations that use Experian to check you out and now that I know the process I can use Experian to drive better deals and secure satisfactory credit lines if and when they are required.” Greg
“Excellent service which provides piece of mind in respect of my finances.” Robert