Experian Credit Report: What It Is and How to Check Your Score

An Experian Credit report confirms that an individual has borrowed and repaid a certain sum of money. In other words, this credit report is a summary of the borrower’s credit and debts provided by Experian, one of the credit information companies operating in India. This report shows the 3-digit score, which represents the customer’s creditworthiness, ranging from 300 to 900. 

Quick Reads

• Experian credit report is a summary of an individual’s credit history with the loan service, including credit card repayments and debt details.

• Experian score is a 3-digit number indicating the level of creditworthiness, usually ranging between 300 and 900 points.

• Checking your report and score is easy and free, with several online lenders and banks offering it within minutes.

• The best practice to increase the score is to pay the money on time and maintain a low credit utilization ratio.

Anyone who has applied for a loan or credit card at least once has come across the term ‘credit score’. Experian is a credit reporting company that supplies the credit history of its customers to Indian lenders. Knowing the details and importance of an Experian credit score check or report will help you understand how fast lenders approve loans.

An Experian Credit Report provides lenders with a summary of the borrower’s financial behavior, including a list of loans and credit cards, their monthly bill amounts, overdue payments, and the total sum of money owed. Experian Bureau website registers data from NBFCs, banks, and other financial institutions that oversee the money on a regular basis. 

Lenders using Experian report information evaluate the credit risk of the borrowers to decide whether to approve the loan or not. The above mentioned data helps calculate the credit score, based on which the lenders allow or refuse the loan application.

An Experian Credit report usually consists of several sections arranged in the same order. 

The personal information section determines the name, the date and place of birth, PAN number, address, and contact information of the owner.

The account information section displays the list of all closed and open loans and credit cards. Additionally, this part shows the sanctioned loan amount and credit limit, the amount paid, and the monthly installment. Particular details about the monthly payments are specified on a monthly or quarterly basis.

The inquiry section of the report comprises the list of all organizations that have accessed the borrower’s Credit report to approve the loan application or decline it. The lenders control this information to examine the interest rates for loan approvals. Too many loan applications in a short period let the lenders understand that the borrower is a high-risk candidate for the loan.

Besides, most reports highlight the summary at the beginning of the document to determine the total number of active accounts and the amount of money owed.

The Experian Credit Score is calculated by information available on the credit report of an individual. Usually, this credit score ranges between 300 and 900 points. The higher it is, the better loan approval chances an individual has. A credit score considers the borrower’s payment history, credit utilization ratio, credit age, and the number of loan applications in a short period.

What Different Scores Actually Mean?

Here is how to look at your Experian credit report: 

1. Head over to Experian or a partner platform: Go to Experian’s official website, or a lending or financial platform offering free credit checks in partnership with Experian.

2. Fill in your personal information: The information to be filled in generally includes your Name, PAN, Date of Birth, and Mobile Number.

3. Verify your identity with OTP: An OTP will be sent to your registered mobile number to verify your identity. Enter the OTP to move forward.

4. View or download your report: Your report and score are generated almost immediately, and you can view or download them from the platform.

As per the Reserve Bank of India guidelines, every individual is entitled to check one free credit report from each bureau, including Experian. Make it a habit to keep track of your report instead of waiting until you need a loan.

Reviewing your credit report many times helps you understand your credit better. It also helps you see the things you can fix to improve your money and finances: 

• Spot Errors Before They Hurt You: Errors are bound to happen. A closed loan might still show up as active, or a timely payment might show up as delinquent. Keep checking your report to spot any such errors and dispute them when you find them.

• Keep Track of Your Total Debt: Your report shows how much debt you owe across lenders, which helps you organize repayments instead of getting confused by multiple EMIs and due dates.

• Get Ready to Apply for a Big Loan: Take a look at your report before you apply for that big home loan or a car loan. This way, you can resolve any inconsistencies before you apply.

Checking your Experian credit report helps you understand your finances. Your credit score shows how you are managing money and loans. When you know how your credit works, you can improve it. Start checking your report now so you will be ready when you need to borrow money. You can also use Finnable’s free Credit Score Calculator to check your score instantly, with no impact on your credit score.