Understand your Credit Score & Report With Experian

  1. What is a Credit Score?

A credit score is a 3-digit number that shows how likely you are to be accepted for credit. Before a lender agrees to lend you money, they need to understand how likely you are to pay it back. To do this, they look at your credit score which is provided by a credit bureau like Experian. The credit score ranges from 300 to 900, 900 being the highest. Higher the credit score, greater are the chances of your loan approval.

  1. How can a Credit Score help me?

When you apply for a credit card or a loan, lenders like banks and non-banking finance companies check your credit score to see whether you have the ability to repay the credit. If you have a higher credit score, you are entitled to receive preferential pricing and get discounts on the interest rate. Moreover, a high credit score gives you the additional power to negotiate for a better rate of interest on loans.

  1. How is my Experian Credit Score calculated?

Your credit score is calculated after taking into consideration factors such as payment history, credit utilization, credit age, credit type, total credit accounts, etc. It is advised to check your credit score on your own before applying for a loan. You can check your credit score for free here.

  1. Why don’t I have an Experian Credit Score?

If you don’t have a credit score, it’s usually down to one of these two reasons:

  • You don’t have any credit history, i.e., you have not taken a credit card or a loan till now
  • Your credit history is too old, i.e., you have not used credit in the past 10 years
  1. Does Credit Score alone determine whether I get credit?

The lender's primary objective is to determine whether you are a good or bad credit risk. Your credit scores are only one factor used to assess your credit stability and ability to pay back a loan. The other factors that lenders look at make up your financial profile. These include your credit history, payment history, income and overall financial situation.

  1. What is a credit ‘inquiry’?

A credit inquiry is a request by an institution for Credit Report Information from a credit-reporting agency. They are classified as either a hard inquiry or a soft inquiry.

Hard inquiries (also known as ‘hard pulls’) generally occur when a financial institution, such as a lender or credit card issuer, checks your credit when making a lending decision. They commonly take place when you apply for a loan or a credit card.

Soft inquiries (also known as ‘soft pulls’) typically occur when a person or company checks your credit as part of a background check. This may occur, for example, when a credit card issuer checks your credit without your permission to see if you qualify for certain credit card offers. Your employer might also run a soft inquiry before hiring you.

  1. Will my Experian Credit Score drop if I apply for new credit?

The first step a bank takes when you apply for a new credit card or a loan is to make a hard credit inquiry. A hard enquiry might temporarily lower your credit score.

  1. What is in a Credit Report?

A credit report contains the following categories of information:

  • Identifying Information – Your name, address, national IDs (PAN/Aadhar), date of birth. This information is not used in calculating credit scores; it is only used to identify you. Updates to this information come from information you supply to your lenders.
  • Credit Accounts – The lenders such as Banks & NBFCs report information about each credit account you have with them. They report the type of credit account, the date you opened the account, your credit limit or loan amount, the account balance, and your payment history.
  • Credit Inquiries – Your credit report lists the inquiries that lenders have made for your credit reports within the last two years. When you apply for a loan, you authorize your lender to ask for a copy of your credit report.
  • Bankruptcies – Consumer reporting agencies also collect bankruptcy information from courts, and delinquencies reported by collection agencies.
  1. How is a credit history established?

A credit history gets established as soon as you take your first credit card or loan.

The lender of your credit shares information with the credit bureaus. Essentially, the lenders keep Credit Information Companies up-to-date about your credit habits.

  1. How long does it take a default payment to be reflected in the credit score and report?

A default occurs if the lender decides to close your account because you’ve missed payments.

A default can occur regardless of how much money you owe, whether it’s a few rupees or a few thousand. It usually happens if you’ve been missing payments over the course of three to six months, but this can vary depending on the lender’s terms. So, it’s important to keep track of when you are due and make payments on time.

  1. What are the score factors?

Your credit score is calculated taking into consideration several factors such as your credit history, repayment behavior, and credit type, among others.

These are the main factors that impact your credit score:

  • Payment History (High Impact)

Making regular payments will have a good impact on your credit. Missing out on payments will lead to a decrease in your credit score.

  • Credit Exposure (High Impact)

Credit exposure or credit utilization ratio is the amount of credit you use with respect to the total limit you have at any given point. You should ideally use only up to 40% of your credit limit. Having a low credit utilization ratio suggests you can handle credit in a responsible way. Maintaining a high credit utilization ratio will bring your score down and will impact future loan approvals.

  • Age of the Credit (Medium Impact)

A long credit history works well for your credit score. It gives lenders such as banks and non-banking finance companies (NBFCs) insight into your repayment pattern over the course of time. It reflects your experience in handling credit.

  • Total Types of Account (Low Impact)

It is better to have a good balance of secured as well as unsecured loans in your credit history. A home loan is an example of a secured loan while a credit card is an unsecured loan. A mixed credit helps boost your credit score.

  • No. of Hard Enquiries

Every time you apply for credit, the lender will pull up your credit report leading to a hard inquiry. Multiple inquiries in a short span might raise a red flag to lenders and they will be reluctant to offer you credit.

  1. How to get Free Credit Score and Report

 You can access unlimited number of free credit reports throughout the year on Experian website.

Click here to get your free credit report instantly.

  1. How do I dispute an item on my credit report?

You can raise a dispute through the dispute raising mechanism available on the portal. Click here to login. Navigate to ‘Dispute’ section and raise a dispute. You can also refer to the user guide for step-by-step screenshots.

  1. How can I change my e-mail address?

The data in the Experian Credit Information Report is based on the information provided to us by all our member banks, financial institutions and other credit grantors, therefore the concerned credit-granting organizations own the data in your Credit Information Report. We are not authorized to amend or change any data without the specific written consent of the lender who provided the information to us. Hence, please approach the respective bank to change your e-mail address.

  1. How can I change my home address?

The data in the Experian Credit Information Report is based on the information provided to us by all our member banks, financial institutions and other credit grantors, therefore the concerned credit-granting organizations own the data in your credit information report. We are not authorized to amend or change any data without the specific written consent of the lender who provided the information to us. Hence, please approach the respective bank to change your home address.

  1. How can I change my name?

The data in the Experian Credit Information Report is based on the information provided to us by all our member banks, financial institutions and other credit grantors, therefore the concerned credit-granting organizations own the data in your credit information report. We are not authorized to amend or change any data without the specific written consent of the lender who provided the information to us. Hence, please approach the respective bank to change your name.

  1. How do I change my date of birth?

The data in the Experian Credit Information Report is based on the information provided to us by all our member banks, financial institutions and other credit grantors, therefore the concerned credit-granting organizations own the data in your credit information report. We are not authorized to amend or change any data without the specific written consent of the lender who provided the information to us. Hence, please approach the respective bank to change your date of birth.

  1. What do I do if I don't recognize an account on my Experian Credit Report?

You can raise a dispute through the dispute raising mechanism available on the portal. Click here to login. Navigate to ‘Dispute’ section and raise a dispute. You can also refer to the user guide for step-by-step screenshots. Please raise a dispute and mention the account details that do not belong to you.

  1. My Days Past Due is mentioned wrong in the credit report. How do I change it?

You can raise a dispute through the dispute raising mechanism available on the portal. Click here to login. Navigate to ‘Dispute’ section and raise a dispute. You can also refer to the user guide for step-by-step screenshots. Please raise a dispute and mention the account details in which the days are displaying incorrectly.

  1. My Account Details are incorrect. How do I change it?

You can raise a dispute through the dispute raising mechanism available on the portal. Click here to login. Navigate to ‘Dispute’ section and raise a dispute. You can also refer to the user guide for step-by-step screenshots. Please raise a dispute and mention the account details that are incorrect.

  1. My Account Status is incorrect. How do I change it?

You can raise a dispute through the dispute raising mechanism available on the portal. Click here to login. Navigate to ‘Dispute’ section and raise a dispute. You can also refer to the user guide for step-by-step screenshots. Please raise a dispute and mention the account status that is incorrect.

  1. The account mentioned in the credit report is not mine.

You can raise a dispute through the dispute raising mechanism available on the portal. Click here to login. Navigate to ‘Dispute’ section and raise a dispute. You can also refer to the user guide for step-by-step screenshots. Please raise a dispute and mention the account number that does not belong to you.

  1. My account is not reflecting in the credit report.

You can raise a dispute through the dispute raising mechanism available on the portal. Click here to login. Navigate to ‘Dispute’ section and raise a dispute. You can also refer to the user guide for step-by-step screenshots. Please raise a dispute and mention the account details that are not reflecting in the report.

  1. My account balance is incorrect.

You can raise a dispute through the dispute raising mechanism available on the portal. Click here to login. Navigate to ‘Dispute’ section and raise a dispute. You can also refer to the user guide for step-by-step screenshots. Please raise a dispute and mention the account details against which account balance is incorrect.

  1. I forgot my password for ECV report.

You can raise a query through the dispute raising mechanism available on the portal. Click here to login. You can also refer to the user guide for step by step screenshots. Please raise a query and mention that you have forgotten your password.

In case of any queries related to moratorium on your EMIs and credit card dues, click here

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