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Experian Credit Score

The Experian Credit Score comes in handy to check your eligibility for a loan in case you are looking to borrow for some purpose. The Experian CIBIL score indicates your borrowing behaviour and repayment history based on which your loan amount is also decided.  

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About Experian Credit Score

Your Experian credit score is a 3 digit number that gives you a summary of your past repayment history, your past behaviour, borrowed amounts, your repayment methods, and other details. The credit score's purpose is to give you an idea of whether or not you are eligible to apply for loans and credit cards at the moment. It does not directly state it but it makes sure your lender gets an idea of what kind of a borrower you are before they approve your loan.

Experian is one of the leading global information companies that provide credit reporting services to individuals and businesses across the world. Their portfolio includes providing services to more than 235 billion people and to 25 million US businesses over the years.

The Experian CIBIL score ranges from 300 to 900. 300 is the lowest score one can get and 900 is the highest one. If your score is close to 900, you are more likely to be approved when you apply for loans and credit cards from lenders.

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What is Experian Credit Score?

A credit score can be explained as a three-digit number that indicates a person's creditworthiness. It determines whether you will be able to pay your credit bills after taking a loan or not.

Experian credit score is a number that is calculated based on how you are as a borrower. Several factors and metrics are involved in this procedure.

The amounts you borrowed for your previous loans, if you made your repayments on time or not, your personal information, number of open credit accounts, the duration of your past loans, and other details are taken into consideration in this procedure.

If your credit score is around 750 or 700, it is considered to be a decent score. However, if it is less than 600, first work on increasing your credit score before you apply for loans and credit cards from lenders. Pay your monthly bills, EMIs, and debts on time and make sure you never make late payments. These are the major factors that affect your credit score immensely and reduce your score.

When you apply for a loan, your lender checks your credit score and decides whether or not you are eligible to take out the loan. Your past history, open account details, personal information, and other details are examined before your loan is approved by the lender. Therefore, an Experian credit check is extremely essential if you are intending to apply for a loan or credit card soon.

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How to Check Experian Credit Score Online for Free?

In order to check your Experian credit score online, visit their official page and put all your personal details properly. You will be asked to pay around Rs.399 for the credit report.

However, Experian also provides free credit reports to the customers. In order to get a free Experian credit report, simply visit their official website and click on the option ‘Free Credit Score’ on the right side.

Their free credit reports are as genuine as their paid reports. Paid reports are generally more detailed. They tell you more about how your repayment history has been and how responsible you are as a borrower.

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Importance of a Good Experian Credit score?

An Experian credit score has a huge role when it comes to proving whether you are a responsible borrower or not.

When you have a credit score of 900 or 850, your lenders may offer pre-approved loans to you based on your score. When you have a lower credit score, your details are minutely examined and you might lose out on a few opportunities for that. If your score is less than 650, make sure you spend some time improving the credit score before applying for a loan or a credit card.

There are several benefits that you can enjoy if you have a good credit score. Several financial benefits and rewards are offered to you. You can have a bigger credit limit if you have a good credit score.

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Factors affecting your Experian Score

There are several factors that affect your Experian credit score immensely. Some of the most important factors that you need to keep in mind are:

Taking out multiple loans

Before you move on to figure out how to improve your CIBIL score, make sure you are aware of taking out multiple loans from multiple lenders. It may cause late payments and affect your CIBIL score eventually.

It will show that you are financially not capable enough to make your monthly payments on time. It can significantly impact your CIBIL score. When you take out multiple loans and fail to make your payments on time, your lenders may send inquiry requests to credit rating agencies. It affects your credit score a lot. It will eventually decrease your CIBIL score.

Making late payments

If you have a habit of making frequent late payments, your credit score will always be on the lower side.

Late payments not only indicate you are incapable of planning your finances properly but also make you an incapable borrower of loans.

High utilisation of credit limit

The credit limit you have refers to the maximum amount you can spend through your credit card on a monthly basis. Credit limits are set based on your capacity of making repayments. If you're wondering how to increase your CIBIL score, make sure you keep track of how much you spend from your credit limit.

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Services Provided By Experian

Experian offers different services to their customers. Some of the top Experian services are: 

  • They offer paid as well as free credit reports to the customers. You can go for either one as per your preferences.
  • They make their customers aware of several financial risks and disadvantages that they might face due to a low credit score.
  • They collect consumer data and make a credit report that gives a summary of an individual from a personal and a financial standpoint.
  • They also provide the opportunity for you to raise a dispute regarding any credit details if you prefer.

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How is Credit Score Calculated by Experian?

Your payment history, personal details, number of credit accounts, length of credit history, and other details are examined for preparing your Experian credit report.

Whether or not you made late payments has an immense impact on your credit score. Even one single late payment can affect your credit score.

Several factors and metrics are involved in the procedure. Your cibil score range from 300-900, 900 being the highest one. This score determines your eligibility to apply for loans and credit cards. Therefore, an Experian credit score check is a must before you apply for loans.

However, you have to remember that you do not have a single credit score. Credit scores can vary for several reasons. One individual can have multiple credit scores for different reasons.

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How to Improve Experian Credit Score?

In order to improve your Experian credit report, you must remember a few points.

  1. Do not keep applying for multiple credit cards. Maintain a gap in between. Applying for different credit cards shows you as a desperate borrower that has no financial management tactics.
  2. Make sure you pay your monthly bills, credit use, EMI on time. Do not ever make late payments. It affects your credit score immensely.
  3. Limit your expenses. Do not spend over 30% of your credit limit if you want to maintain a good credit score. Spending more than 50% consistently can reduce your credit score a lot.

These are the three major points that you need to keep in mind if you want to maintain a good Experian credit score.

Additional Reading: How to read cibil report?

Experian Credit Score FAQs

What is the difference between cibil and Experian credit score?

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Both CIBIL and Experian are reputed global credit companies. They are well known for their services across the world. However, when it comes to networking, CIBIL has a wider connection compared to Experian.

What is Experian credit used for?

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Experian credit score is examined by your potential lenders when you apply for loans and credit cards. Your credit score reflects your creditworthiness and lets your lender know whether or not you are a responsible borrower.

Which banks use Experian credit reports?

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All reputed banks and NBFCs in India are members of Experian. All the top banks use Experian credit report to judge the borrowers’ creditworthiness.

Is Experian usually the lowest score?

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Different credit agencies can give different credit reports. Some companies may ask you to provide more details than what other companies require. Therefore, the results can differ from one company to the other.

Experian does not give you the lowest score. However, their score may not match with other companies due to the reason mentioned above.

How will the Experian credit score affect my loan applications?

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Your Experian credit report will affect your loan applications immensely. Your lenders judge you as a borrower by looking at your credit score. If you have a low credit score, your loan applications will not be approved by your lender. On the other hand, when you have a good credit score, you will receive additional financial rewards and benefits as a result.

How many times can I check my Experian credit score?

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You can check your credit score as many times as you want. It does not affect your credit score at all. Whenever you intend to apply for a credit card or a loan, make sure you check your credit score beforehand. It will help you understand whether you have an ideal credit school to apply for a loan at that moment. You can also understand whether or not you need to improve your credit score before making loan applications to lenders.