Have you heard of the Experian report? Are you wondering what is an Experian score? Well, you'll find all answers right here.
Experian is an Indian multinational credit reporting company that started in 2010. It provides information and data to clients globally and is among the only four credit bureaus licenced by the Reserve Bank of India (RBI). Experian helps companies manage credit risks, target marketing offers, automate decision making, and prevent fraud.
This leading global company also provides credit scores and credit reports to individuals to help them manage their financial activities efficiently. But what is an Experian credit report and how to check Experian credit score? Let's find out.
What Is Experian Credit Report?
Experian's credit report includes detailed information about your credit history. It also maintains a record of your existing loans, active credit cards, and repayment history. The company obtains this information from approved members who can access it when you apply for credit with them. This information helps the credit bureau determine your Experian credit score. Before understanding the benefits of this report, let's dive into what is an Experian score.
What Is an Experian Credit Score?
Your Experian credit score is like a report card for your borrowing habits. It's a number between 300 and 850 that shows lenders how responsible you are with money. A high score means you're more likely to get approved for loans and credit cards with good terms. To improve your score, make payments on time, use credit wisely, and avoid applying for too many new loans or credit cards.
How to Check Experian Credit Score?
Now that you know what is Experian score, let's understand how you can run an Experian credit score check. You can get your credit report via two methods- online and offline.
Steps for online Experian credit score check-
Visit the official Experian portal and select the 'Free Credit Report' option
Enter the required details to log in like your name, email address, and mobile number
You will receive an OTP on the mobile number you share. Enter the OTP and click on 'Get Credit Report'
After logging in, you'll need to verify your identity using your residential address, date of birth, and any of your government-approved ID card number
After successful verification of this information, you'll need to fill out a form about your loans and credit history
Once done, the site will redirect you to a page with your credit score
You'll also receive a copy of the report at your email address
Steps for offline Experian credit score check
Visit the official Experian portal and download the credit report application form
Fill out the form and add your signature at the end
Attach a self-attested photocopy of your ID proof documents like a PAN card, voter ID, or passport.
Attach a self-attested photocopy of your address proof documents like electricity bill, telephone bill, rent agreement, deed of purchase, etc.
Pay the fee of ₹138 for your credit report through NEFT or enclose a demand draft
Send the application form along with the payment proof and required documents via post or courier to this address- Experian Credit Information Company India Pvt. Ltd. Consumer Services Equinox Business Park, Tower 3, 5th Floor, East Wing, LBS Marg, Kurla (West), Mumbai 400070
You will receive your Experian credit score and report in the mail
What Is a Good Experian Credit Score?
The Experian Credit Score ranges between 300 and 850. The higher the score, the greater your creditworthiness. If you want to know what is a good Experian credit score in detail, this table will help you-
Score
Category
Meaning
300-549
Poor
You have a poor credit history and lenders will consider you a high-risk borrower.
550-649
Fair
This indicates unsecured loans, payment defaults, etc., and puts you in the high-risk category.
650-749
Good
You have a balanced credit history with timely repayments and lenders will consider you a low-risk borrower.
750-799
Very Good
You have a good credit history with zero defaults and lenders will consider you a low-risk borrower.
800-850
Excellent
This indicates a nearly perfect credit score. Lenders will consider you a very low-risk borrower and extend better deals on credit cards or loans.
Benefits of Having a Good Experian Score
After understanding what is a good Experian credit score, let's dive into its benefits.
Easy Loan Approval
When running an Experian credit check, a high score will help you secure approvals for your credit requests easily. This is because a good score proves your creditworthiness and indicates excellent financial management.
Better Interest Rates
A high Experian credit score helps you negotiate interest rates with your lender and secure a better deal when applying for a loan or credit card.
Eligibility for higher limits
A high Experian score also increases your eligibility to avail of a higher credit limit. This is because lenders will run an Experian credit score check on your profile before making this decision. And a good score will indicate that you're a low-risk borrower with zero defaults.
What Is The Experian Credit Score Importance?
Are you wondering why you should run an Experian credit check? Well, your Experian score indicates your repayment ability. It is the first thing that lenders will check while processing your loan or credit card application. Therefore, to increase your chances of securing the lender's approval, you must conduct timely Experian credit checks to ensure that it's between the ideal range of 750 and 850.
It'll also help you determine your loan eligibility and identify any inconsistencies or potentially fraudulent transactions on time.
The Takeaway
Understanding what is an Experian score isn't complicated. It's a summary of your credit history that includes your credit utilization ratio, repayment ability, existing debts, etc. A good score indicates that you're in a financially sound position and can repay your debts on time.
If you're looking for what is an Experian credit score to avail of a loan, check out Tata Capital's flexible options. Our loans are not only multipurpose but we also offer the most competitive interest rates in the industry. Apply for personal loan online through our website today.
16 September 2022
6 mins read
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