Experian Credit Score

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.

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.

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 report is extremely essential if you are intending to apply for a loan or credit card soon.

Your Experian credit report contains the following components:

In order to check your credit score free online, visit their official page and enter 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 customers. In order to get a free Experian CIBIL Report, simply visit their official website and click on the option ‘Free Credit Score’ on the right side.

Their Experian 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.

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

• Payment History: Timely payments positively impact your score, while late payments or defaults have a negative effect.
• Credit Utilization: Maintaining a low credit card balance relative to your credit limit is crucial for a higher score.
• Credit Age: A longer credit history tends to improve your score.
• Credit Mix: A diverse range of credit types (e.g., credit cards, loans) can have a positive impact.
• New Credit: Applying for multiple new credit accounts in a short period can lower your score.
• Public Records: Bankruptcies, tax liens, and other public records can significantly lower your score.
• Hard Inquiries: Excessive hard inquiries from credit applications can negatively affect your score.
• Credit Limits: Higher credit limits on your accounts can improve your score. If you're wondering how to increase your CIBIL score, make sure you keep track of how much you spend from your credit limit.
• Available Credit: Unused credit you have available can positively impact your score.
• Errors: Review your credit report for inaccuracies and dispute them to maintain an accurate score.

You can quickly generate your Experian credit report from the official portal of Experian by paying a nominal fee of Rs. 399 (including taxes). You just need to fill up an online form and authenticate your identity by answering a few questions. 

Once your identity is successfully validated, your Experian credit information report and credit score will be instantly displayed on your screen in real-time. You will also receive a copy of the report at your registered email address.

Steps to Check & Download Experian Credit Report Online for Free:

• Visit the official website of Experian and log in to the user portal.
• Then enter your details, including your full name, email address, date of birth, mobile number, gender, PAN, address, etc.
• Verify your identity by using OTP.
• Click on the 'Get report' button to check your Experian CIBIL score and report.

An Experian 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.

• Credit information gathered from Experian plays an important role in availing of any credit.
• Your credit score and history can impact the terms and conditions of loans and credit cards.
• The credit report helps you understand your financial standing and control your credit budget.
• This report also helps you make informed financial decisions.
• It can help you protect yourself against identity theft.
• Many online loan aggregator platforms provide an Experian Score for free.

Experian calculates credit scores using a proprietary algorithm that evaluates various factors from your credit history. While the exact formula is not disclosed, the key components and their approximate weightage are well-known. Here's an illustrative breakdown:

• Payment History (35%): Timely payments on credit cards, loans, and bills positively impact your score. Late payments, defaults, or accounts in collections have a negative effect.
• Credit Utilization (30%): This measures the ratio of your credit card balances to their limits. Keeping this ratio low (typically below 30%) can boost your score.
• Credit History Length (15%): A longer credit history is generally favorable for your score.
• Credit Mix (10%): Having a diverse range of credit types, such as credit cards, mortgages, and installment loans, can positively affect your score.
• New Credit (10%): Opening multiple new credit accounts within a short timeframe may lower your score temporarily.

Experian then compiles these factors into a three-digit credit score, typically ranging from 300 to 900. The higher your score, the better your creditworthiness, making it easier to access loans and credit cards with favorable terms.

To understand how a CIBIL score change occurs and the process of CIBIL Score Calculation, it's essential to delve into the nuances of credit assessments in India. Your CIBIL Score Range from 300 to 900, indicative of a person's credit reliability. The calculation of this score involves factors like credit history, repayment patterns, credit utilization, and the diversity and duration of credit. Awareness and management of these elements can significantly influence a CIBIL score change. Consistent on-time payments and judicious use of credit can elevate the score, whereas defaults and excessive credit usage can diminish it. This evolving score plays a vital role in determining one's loan qualifications and interest rates.

To improve your Experian 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 credit score.