What is Experian Credit Score – Here’s Everything You Need To Know

Credit Score plays a huge role in your whole credit journey as the approval or rejection of your loans/credit card applications depends on it. Credit bureaus calculate your credit score, which collects your credit information and prepares your credit report. There are four major credit bureaus in India, and Experian is one among them; the other three are CIBIL, Equifax, and Highmark. Experian has become one of the most trusted credit agencies in the country. It collects the credit histories of individuals and businesses and prepares their credit reports accordingly. Do you know what an Experian credit score is and how to check it? If not, this article will help you understand everything about an Experian credit score and the factors that affect it. Keep reading for more information:

What is An Experian Credit Score?

An Experian credit score is the three-digit credit score calculated by Experian India, which shows the creditworthiness of an individual. In short, it is a number that is calculated based on your payment history, hard inquiries on your credit profile, and several other factors. It helps the money lenders or card issuers understand how responsible or risky you can be as a borrower. Your Experian credit score can be any number between 300 and 900, where 300 represents the poorest financial behavior and 900 shows responsible and excellent financial behavior. You must achieve an Experian credit score near 900 to get approved for credit cards and loans easily. Following are the points explaining the range of Experian credit scores:

• An Experian credit score between 300 and 579 represents a poor score, which means that the individual has non-responsible payment behavior. If you have a poor Experian score, your chances of getting a loan or an unsecured credit card are very low, as most financial institutions will consider you a very risky borrower.
• An Experian credit score between 580 and 669 is considered a fair score, which shows that the individual might have missed or delayed payments several times. It is better than having a poor score, but you can still be considered a defaulter if you have a credit score within this range.
• An Experian score between 670 and 739 is considered good, decent enough to help you get approved for loans and credit cards easily.
• An Experian score between 740 and 799 is a very good score and makes you a trustworthy borrower. In this case, you may get loans and credit cards approved quickly with a hassle-free application process.
• An Experian score above 800 is considered exceptional, which shows that the individual has excellent and responsible payment behavior. Having an exceptional score can be very helpful, as it can get you loans and credit cards with the lowest interest rate and best deals.

How To Get Your Experian Credit Score & Report?

Experian India allows you to get your Experian CIR (credit information report) for free once a year. Other than the free report, you can request your Experian credit report and score anytime online or through post:

Online

• Visit the official website of Experian India and fill out the online application form for the Experian credit report along with your credit score.
• Verify your identity by answering questions about your previous loans and credit cards.
• You will be charged Rs. 399 every time you apply for an online credit report and credit score.
• You can make the payment and get your credit report and score online. A copy of your credit report will also be sent to your verified mail address.

By Post

• You can also download and complete the physical application form to get your Experian Credit report via post.
• In this case, you will have to pay Rs. 138 (Rs. 100 for a credit report and Rs. 38 for postal charges). You can make payment through NEFT or a Demand Draft.
• Send the NEFT receipt/DD, your application form, and the required documents to the postal addresses mentioned on the official website.

What Information is Mentioned in Your Experian Credit Information Report?

• Personal Identity Information – This section includes all relevant personal information, including your name, contact details, current and permanent addresses, etc.
• Credit Accounts – This section contains information about all your credit card accounts, loans, and payment history.
• Inquiries – This section shows all the soft and hard inquiries made on your credit profile. Hard inquiries can have a negative effect on your credit score, whereas soft inquiries do not.

How To Raise a Dispute Against Missing/Incorrect Information on Your Experian Report?

The Experian website also allows you to raise a dispute if any information is missing or inaccurate in your Experian report. You can correct it by raising a dispute so it doesn’t affect your credit score. Following are the steps to raise a dispute against your Experian credit report:

• Log into your Experian account by visiting the official website.
• Go to your ‘credit information report.’
• You will see the option ‘dispute’ at the top of your screen. Click on that.
• Select the option ‘Raise a dispute.’
• Select the category of your dispute and fill in all the required details.
• Submit the form.

Factors Affecting Your Experian Credit Score

Payment History

Your payment history is the most important factor that affects your Experian score. 35% of your credit score depends on your payment history. So, paying your bills on time is really essential to maintain a healthy credit score.

Credit Utilization Ratio

Spending a lot of your credit limit is never a good idea, as a high credit utilization can hurt your Experian Credit score. You should spend only 30% or less of your credit limit to maintain a good credit score.

Length of Credit History

The longer your credit history is, the better your credit score will be. So, you should avoid closing your credit accounts, even if not in use, as it can help you maintain a good length of your credit history.

Credit Mix

Having only one type of credit will not help you achieve a good credit score. You should try to have a good credit mix, i.e., try to have different types of credit, including personal loans, credit cards, home loans, etc.

Hard Inquiries

Every time you apply for a new credit card or a loan, the card issuer/moneylender checks for your credit score, and this is known as a hard inquiry. Too many hard inquiries on your credit profile within a short time period can hurt your credit score.

Bottom Line

Experian is a trusted and major credit bureau in India and provides its consumers with a detailed credit report and credit score at a very nominal price. However, it allows you to get your Experian credit report for free once every year. You need to check your Experian credit information report regularly to keep yourself updated and improve your mistakes. If you still have any doubts about how to check your Experian score, ask in the comment section below.