experian credit score

What is an Experian Credit Report and How it is Generated? Know Here

After finally making up your mind to avail a loan or a brand new credit card, what do you think happens next at the lenders end? Well, the moment you apply for a loan or credit card facility, the first thing that most of the lenders do is to check the eligibility of an applicant. And, when it comes to checking the eligibility, a credit score is one such vital factor which they can’t miss.

That’s Right! Your credit score is undoubtedly one such crucial aspect of your eligibility that plays a pivotal role in your overall loan or credit card journey. This is the reason that lenders always keep an eye on your free credit score and after complex analytical evaluation of the same decides your eligibility for a loan or credit card.

Now keeping an eye on an individual’s score is not an easy task. And, this is where, the Credit Agencies come into the picture. Yes, the main role of these agencies is to collect and maintain the credit data of individuals along with their credit/repayment history. And, Experian is one such renowned credit agency whose main objective is to keep the credit score of individuals in check. And, while keeping an eye on the score of different individuals, the agency also deals in Experian credit report that includes the detailed data of an individual’s credit history and repayment track record.

Moreover, if we talk more about the same, the report had been created on the basis of a credit score. The lower score an individual has, the more it is going to be problematic for him to grab the best deal. Yes, lenders usually prefer such applicants who are having a good score as it will help them in grabbing the loan/credit deal in a hassle-free manner. They do check the repayment and credit history of an individual as it gives them a quick check whether the person has defaulted earlier or not.

However, if an individual does not have a credit score, it would be a bit problematic for him to get the loan/credit so easily. And, those who are having the same, it is important for them to maintain the same by keeping certain practices in mind.

Well, now that you know much about a credit score, let’s just come back to the topic and explain you more about an Experian credit score. How it is calculated and how your report gets generated? Curious to know the same? All you need to do is just read the article below..

So let’s just start from the beginning, an experian score is the numeric representation of an individual’s past repayment record and is solely based on the information in his credit report. The score has been further categorized as shown below:

  • 961-999 (Excellent)
  • 881-960 (Good)
  • 721-880 (Fair)
  • 561-720 (Poor)
  • 0-560 (Very Poor)  

This is the classification done which Experian takes into consideration while checking the eligibility of an individual for a loan/credit. And, on the basis of the same, the report of an individual gets generated which basically includes each and every detail related to an individual’s credit history, repayment track, current loan, credit card dues, previous loan details, etc. Let’s just give you a brief how this report gets generated.

Well, the report has been generated after taking into consideration the below pointers:

  • How many credit accounts you have
  • How much credit you owe in total
  • Whether you have missed any payment
  • How many credit applications made by you in the last 6 months

Once the report has been generated, it reaches to the lenders such as many banks and NBFCs, which they consider at the time of availing the loan. Yes, by looking at your Experian credit report, the lenders decide whether you are eligible for a loan/credit card or not. The report contains all in and out data of an individual’s profile, which further helps the lenders at the time of offering the loan/credit.  

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