Experian is an RBI and SEBI-approved credit rating institution that saves consumer information and regains it in an Experian credit report format. The report includes credit information, such as outstanding balances, borrowed loans, payment history, and more. In addition to debt information, it also includes information about when a lending institution inquired and previous credit applications.
Basically, whenever a loan is started to be paid off, the loan company sends details regarding credit behaviour to credit rating agencies like Experian. The agency interprets all the details provided and provides its ratings accordingly, which is known as the Experian Credit Score. The higher your credit score, the better your financial health. It also builds trust, and further negotiation can be done in terms of lower interest rates, longer tenures, and higher loan amounts.
Experian acquired its license to operate in India in 2010. It was recognised by the Securities and Exchange Board of India (SEBI) and also the Reserve Bank of India (RBI). For the last 125 years, it has been operating in around 39 countries, providing credit ratings to individuals and companies.
Details provided in the Experian Credit Information Report
Mentioned below in the table is a section-wise summary of the personal details and credit-related information which is included in the Experian Credit Report:
| Parameters | Details |
| Credit or Loan History | Credit ScoreInformation and details about the type of credit (secured or unsecured)Loan DetailsDetails regarding any prior defaults with respect to credit card dues or loans, etc.Current balancePayment History |
| Identity Information | It includes the name and address of the customer, PAN card, date of birth, etc. |
| Recent Enquiries | This part contains crucial information related to enquiries made by various financial institutions as a result of your credit applications. It’s important to be aware that these enquiries can impact your credit score, so it’s wise to consider the type of credit facility (loan or credit card) you apply for. |
Factors Affecting Credit Score
Mentioned below are the factors that affect your credit score:
- Non-payment of loan EMIs or credit card dues
- Not checking your credit report for errors
- When multiple credit products are applied for in a short duration
- Length of credit history – Short duration leads to low credit score
- Joint accounts – Being a co-applicant or guarantor of the applicant with a low credit score
How to Check Experian Credit Score!
The credit score is basically dependent on the credit report from a single bureau, i.e., Experian, TransUnion, or Equifax, and is used whenever lenders review your credit. It is quite possible that the credit score is checked with either two or all three credit bureaus. To check how your credit profile looks like, get your FICO score checked, which is powered by Experian data for free. Let us see how:
Step 1: Get Started
Open the Experian website and then click “Check your FICO Score for Free’. Then, provide the last 4 digits of your social security number along with your contact number.
Step 2: Verify Your Personal Details
A confirmation link will be received via SMS. Click on the same and get back to your browser. Provide and confirm the personal details like name, DOB, complete social security number and address.
Step 3: Create Your Account
Once the personal information is provided, and login credentials are created using your e-mail address and password. One can then proceed to create your account.
Step 4: View Your Dashboard
Log in to your account to see your credit score, which will appear on the main dashboard. Click on the score to get more information about the factors that impact it, along with a summary of the debt. It allows one to track changes and trends over a period of time. Instead of the desktop browser, one can also download the Experian mobile app and register there.
Mentioned below are the CIBIL Score Range and Ratings:
| Credit Score Ranges and Ratings | |
|---|---|
| Range | Rating |
| 300 — 579 | Poor |
| 580 — 669 | Fair |
| 670 — 739 | Good |
| 740 — 799 | Very good |
| 800 — 850 | Exceptional |
Steps to Generate Experian Credit Report
Mentioned below are the steps to generate Experian Credit Report:
Step 1: Provide details like full name, registered mobile number, and email ID, and finally click “Submit”.
Step 2: A one-time password will be received on the mobile number you provided. Enter the OTP and click “Verify and Continue.”
Step 3: Select your “Gender” along with the date of birth.
Step 4: Provide the permanent residential address along with city, state, and PIN code.
Step 5: Provide the PAN card details and submit the form.
Step 6: Once the requested details are provided and authenticated, the credit report can be obtained swiftly. One can also obtain a copy via email.
Benefits of Experian Credit Report
Mentioned below are the benefits of Experian Credit Report:
- Enhance the changes in loan approvals, along with low interest rates.
- Increases the options of negotiations and bargains with the respective lenders.
- Helps in availing credit products, such as loans, overdrafts and credit cards, with easy approvals.
- Influences your insurance premiums, as it tends to lower the insurance costs
- It increases job opportunities, as some employers check your credit report before offering a job offer.
- It helps when renting a home, as many property owners across the nation check their credit scores before renting their property.
Tips to Improve the Experian Credit Score
Mentioned below are the tips to improve the Experian Credit Score:
- The loan EMIs should be paid on a regular and timely basis.
- Loan or credit card applications should not be submitted repeatedly within a short period as this shows your craving for credit and, hence, decreases your creditworthiness.
- The credit report and score should be checked on a regular basis.
- In case of any discrepancies in the credit report, the credit bureaus should be informed immediately and get them rectified.
- Don’t get your credit accounts closed, as they help in building a strong credit history.
- One should maintain a low credit utilization ratio, i.e., it may not be considered bad if you have a high credit utilization ratio but would be diligently repaid per month.
