Experian is a credit monitoring company that started its presence in India in 2010. It is one of four credit institutes in India licensed by the Reserve Bank of India (RBI). It provides clients with personal and company credit scores in order to help them measure their creditworthiness and better manage their credit operations.
A credit report is one of the most significant documents that a lender looks at before choosing whether or not to give someone credit. In order to receive credit, it is necessary for people to maintain a decent credit score. Check your Experian credit report for any inaccuracies or abnormalities, as they may threaten your chance to receive credit. You can have your free Credit score checked on various third party websites.
What is a good credit score from Experian?
Experian credit scores range from 300 to 900. The lowest score possible is 300, and the highest score achievable is 900. A higher score usually indicates that a person is in better financial shape. You have complete freedom to monitor your credit score as often as you choose. You can check your credit score at any moment.
Experian creates your credit report based on the information you supply. Your three-digit credit score, which runs from 300 to 900, is determined using a mix of crucial credit history data characteristics and an algorithm.
This three-digit number will summarise your credit history and Experian score. The below mentioned are some of the factors that will affect your credit score directly.
- Credit utilisation ratio
- Repayments history
- Length of credit history
- Total number of loans and credit cards taken out
What is an Experian credit score and why is it important?
Experian aggregates your credit data into a report that financial institutions can use to assess your creditworthiness. Once customers obtain their credit report, they may determine their credit score and the loan amount they are eligible for from lenders depending on their score. If they have a low score, they should work on strengthening it while avoiding major expenditures until their score increases. Aside from that, buyers can survey the property for problems and get them addressed before applying for financing. This method eliminates unwanted confusion on the side of the lenders.
Features and Functions of Experian
In addition to offering company management solutions, the firm assists businesses in the following areas:
- Provides assistance to businesses in discovering marketing opportunities.
- Assists clients in effectively preventing and avoiding fraud events.
- Assists clients by allowing them to better manage their credit risk.
- It aids businesses by automating decision-making processes.
- The firm’s services, which include fraud protection, credit score calculation, and credit report production, are also available to individuals.
Is there a way to improve your Experian credit score?
It is not an easy job of improving your credit score as it is a time taking process. However, following the procedures below will help you improve your Experian credit score:
- Pay your bills on time, as even one or two late payments can damage your credit score.
- Maintain a low credit utilisation ratio (the percentage of available credit that you’re using).
- Maintain a good credit mix to show that you can handle new credit responsibly.
- Keep past credit cards and accounts active, as a lengthy credit history benefit sees you as a dependable borrower.
- Always launch new lines of credit when it is absolutely necessary.
The Bottom Line
For a charge of Rs.399, users can acquire their Experian credit reports online. Simply fill out an online form to verify your identity, then answer the questions and provide information on your credit cards, loans, and accounts payable. Once you’ve completed the steps, you’ll be able to view your Experian credit report online and receive an email copy. You should always go for a quick CIBIL score (सिबिल स्कोर) check before applying for any kind of credit.
You must submit your full name, contact information, email account, date of birth, gender, permanent address, and PAN number, among other things. After you’ve provided these facts, you’ll be asked to complete a brief Q&A round, the answers to which will be used to calculate your credit score. To demonstrate legitimacy, the individual will need to send a few documents to the credit institution. These documents include proof of identity (voters ID, passport, or PAN card) and proof of address (latest bank statement, phone bills, electricity bill, buy / sale deed, licence/rent deed, or passport).