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About Experian

Experian PLC, is a globally recognized consumer credit reporting company. Experian collects and assesses information on more than 1 billion individuals and companies. Headquartered in Ireland Experian operates in 37 countries including India with revenues of $4.6 billion in 2016. Experian was also awarded by Forbes Magazine as one of “The World’s Most Innovative Companies” in 2015.

Experian is one of four credit bureaus, other three being CIBIL™, Equifax, CRIF High Mark operating in India. It is an independent entity licensed by the Reserve Bank of India (RBI) and registered under the Credit Information Companies Act, 2005, to provide its members with credit information products and related services. It has banks, NBFCs and other financial institutions as its members. Member institutions are required to provide data regarding every customer’s credit-related activity. It collates this data on individual consumers and businesses and presents it in a highly readable format.

This information enables lenders make informed decisions regarding lending and enables them to function in a more transparent and efficient manner and at a lower cost than is otherwise possible.

Member institutions report to the credit bureau (and the other credit bureaus in operation) on a periodic, generally monthly, basis about individuals’ credit behavior. The credit bureau, as mentioned before, then processes this information into a usable and readable form and provides credit information reports based on the information provided by the members. It also provides a credit score and a host of other services amongst other related products.

Experian maintains records of all credit-related activity of individuals and companies including all transactions on loans and credit cards. This extensive data present with the credit bureau enables lenders to make informed decisions while evaluating prospective lenders for loans in India.

What is an Experian credit report?

Experian is one of the 4 credit bureaus operating in India namely – Equifax, Experian, CIBIL™ and CRIF High Mark. Experian collects and maintains the data of people who have taken credit in the form of loans or credit cards assessing the borrower in the form of a score called credit score and the compiled information is presented as a report known as a credit report.

What is the importance of an Experian report?

The Experian credit report as any of the other 3 bureaus namely Equifax, CIBIL™ and CRIF High Mark who operate in India are important as it provides banks and NBFCs a way to know the credit worthiness of an individual or credit applicant. By providing a credit score based on the data made available on an individual’s report the bank can make any lending decision. If a person has a very high credit score, then they have paid back their loan regularly and on time. While on the other hand if a person has low credit score it means that he/she was not regular and missed multiple payments. This way banks have a better idea on whose application they can approve.

How can I check my Experian credit score?

The credit score is issued by 4 credit bureaus in India which are CIBIL™, Equifax, CRIF High Mark and Experian. As per RBI guidelines the credit bureaus including Experian are mandated to provide a free credit score once a year to individuals. Those who are interested in knowing their credit scores from the bureaus can visit the bureaus and apply for a credit report online or through post.

You can check your credit score and receive your credit report online. It is a fast and simple process and you will receive your credit score via email shortly after authentication.

While applying through post, you may be asked to furnish certain documents for verification and your report will be mailed to you upon authentication. You can also apply for it by post by sending a filled-in printed application form. Upon authentication of the details, the credit bureau will send you your credit score to the address listed in your address proof document.

Should I check my Experian score before applying for a loan?

Absolutely! As banks look at your credit score which is provided by the 4 credit bureaus Experian, Equifax, CIBIL™ and CRIF High Mark in India, it is best to check your credit score before applying for any loan or credit card. Your credit is the first gate or the first thing a bank check when you apply for a loan and it is based on your score that your loan amount, tenure and most importantly interest rate. If you have a lower score improve it before applying for credit.

What are the factors that affect an Experian score?

Your Experian score can get affected due to the following reasons.

Timely payments: Making payments on-time is an important factor that plays a crucial role in your Experian score. Banks are reassured that there is a high probability that you will make payments on time.
Length of the credit history: When you have a long credit history, banks are reassured that they have detailed and substantial information on your credit behaviour. Hence the length of your credit history could affect your Experian score.
Number of hard enquiries: Hard enquiries are made when by a lender while you apply for the credit. Though a single enquiry may not have much impact on your Experian score, multiple enquiries can have a negative impact.
Number of negative issues: A negative mark could denote one of many things – foreclosure, accounts in collections due to defaults in payments, ‘Written Off’ or ‘Settled’ status on a past loan etc. This again is a heavily weighted factor and a relatively large number of negative marks could severely restrict your eligibility for a loan.

How can improve my Experian score quickly?

Your Experian credit score can be improved by following the some of the tips given below.

  • Monitor your Experian credit report regularly
  • Make on-time payments on your loans and credit cards
  • Maintain your credit utilisation ratio below 50%
  • Have a good mixture of credits
  • Do not apply for multiple loans simultaneously

What are some of the common mistakes that decrease your credit score?

Below are a few common mistakes that can be easily avoided if you wish to maintain a good score:

  • Delayed or missed payments on loans and credit cards
  • Making multiple loan and credit card applications
  • Exceeding your credit limit
  • Non-maintenance of good credit utilisation ratio

What is a good Experian score?

A credit score gives potential lenders a snapshot of your credit health and your ability to repay your debts on time. All four credit bureaus allocate scores differently and it varies between 300 and 900.Any score above 750 is a good score and any lender will consider that score as creditworthy.

What are the consequences of applying for a loan with a poor Experian score?

It is possible to get a loan even if you have a credit score of less than 750, but the approval process takes a longer time and is more difficult as your score decreases. Moreover, you might be given unattractive terms and conditions on your loan offer as you are viewed as a potentially risky customer. In addition to a longer loan approval process and more documentation, a low credit score translates to a higher interest rate on your loan, smaller loan amount and shorter repayment period.

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