Popularly known as one of the world’s most innovative companies as awarded by Forbes Magazine, Experian is a credit information services provider operating under two names in India – Experian Credit Information Company of India Pvt. Limited and Experian Services India Pvt. Limited.
The Experian Credit Report or ‘Experian CIR’ prepared by the company consists of detailed information of your credit accounts, credit cards, recent enquiries, payments, and identity information.
The Experian CIR is essential because your credit score will be derived based on the information available in this report. Your future loan sanctioning will depend upon the credit score so derived.
This guide will tell you the five most important things you need to know about Experian credit score.
1. Change in credit score when the credit report is updated
The credit score will change as your credit report gets updated. Say, for instance, you make timely loan payments – in this case, your credit score will increase. But if you default several times, your credit score will fall. Since lenders have different thresholds based on the type of credit you want, your home loan application could be accepted with the same Experian score and rejected for a personal loan.
2. Frequency of running Experian credit score check
A good credit score can not just help you bag good interest rates on your loans but also help secure good offers on common products such as credit cards and insurance premiums. Ideally, you should review your credit score once every six months. If it’s not at the optimum level, improve your score by clearing debts on time, cross-checking with your credit report, etc.
3. How is Experian credit rating different from the other bureaus?
Since Experian is a part of the global Experian organisation, the company has over 30 years of experience in tackling bureau data and delivering credit reports and scores. The data is gathered from banks and financial institutions. This is what makes Experian’s free credit scorereliable and unique.
4. Experian credit rating range
On the Experian scale, the credit score ranges from 300 to 850. Within this range, as you go below a score of 700, your likelihood to repay debt in the lender’s eye decreases. Conversely, the higher your score from the 700 mark, your likelihood to repay debt from the lender’s perspective increases. With a score over 750, you can qualify for a competitive loan offer with most lenders.
5. Experian credit rating calculation
Deriving the Experian credit rating is a simple process. The credit information companies will simply divide the amount of credit you use on a monthly basis with the total amount of credit that is available to you.
For maintaining a healthy credit score and a credit report free of errors and discrepancies, it’s crucial to check your credit rating regularly. With Tata Capital, you can perform a free credit score check anytime.