Experian introduces Text for Credit service

On Tuesday, credit reporting company Experian introduced Text for Credit, a service that increases consumer buying and retailer selling powers.

Text for Credit allows consumers to initiate and complete the credit application process by sending a text message.

“Technology has brought vast improvements to consumer banking, insurance and investing services, but the credit application process has remained largely unchanged,” Alex Lintner, Experian’s president of Consumer Information Services, said in a release from Experian. “With Text for Credit, consumers will get real-time access to credit, creating a better experience for the consumer and increased conversion for lenders and businesses.”

In an Experian survey, 12 percent of consumers said they have walked away from making a purchase because it took too long to get approved for credit, and another 16 percent bailed on a purchase because the person in front of them was applying for credit. In the same survey, 58 percent said privacy is their top concern when applying for credit and 42 percent said the length of time to apply is also a concern.

In the same way some retailers allow consumers to “text to buy,” those seeking credit can text a keyword to a short code supplied by a merchant or credit issuer. The applicant then receives a text message taking them to a hosted website where they can apply, review credit offers and receive an instant decision.

“In most cases, consumers will be recognized by their device credentials, which lets them avoid filling out a lengthy credit application,” according to the release. If approved, consumers will have immediate access to the credit via a barcode or account details sent to their device.

“Experian is taking the credit industry into the real-time economy with this innovative, convenient and confidential new way to apply for credit. For consumers, Text for Credit means no more paperwork, no more anxious minutes hoping for credit approval and dramatically reduced risk from a paper-extensive exchange of sensitive information,” Lintner said.

This story was originally published July 11, 2017 at 1:58 PM with the headline "Experian introduces Text for Credit service."