All You Need to Know About Experian Credit Score

  • Published on: 5 Apr 2024
All You Need to Know About Experian Credit Score

Before you search for loan companies who use Experian, make sure you understand what this score is and why it matters. Financial institutions rely on the Experian credit score to check if you are eligible for credit based on your past credit behaviour. 

Thus this score can impact the approval of your loan as well as its terms, like the amount and rate of interest you get. Experian is slightly different from other credit rating companies that score individuals, such as CIBIL or CRIF and this is why there are lenders who use Experian only. 

Guide to Credit Score

There are four credit bureaus in India: 

TransUnion CIBIL
CRIF High Mark

They compile a report based on your credit history that features:

  • Details of the number of accounts 
  • Total Debt
  • Repayment history

This information serves them in assigning you a numeric value between 300 and 900, which speaks to your creditworthiness. A high credit score means you a reliable borrower who is likely to enjoy approval on your loan/credit card application. It also helps you get lower rates. 

Guide to Experian Credit Score

Experian is one of the credit agencies in the country and its credit report includes the following:

  • A synopsis of your credit account 
  • Detailed repayment history
  • Personal information related to credit accounts
  • Details about applications made for loans or any other form of credit 

Imporatnce of a High Score For Your Personal Finances

Being seen as creditworthy can help you in two ways when you apply for a personal loan or any other type of credit facility:

Higher Odds of Loan Approval

Every lender has its own criteria when it comes to the minimum credit score it requires to approve your application. With a good score, you can get loans hassle-free. 

Savings on Interest Rate

Over the time that you repay a loan, even a marginally reduced interest rate can translate into big savings. With a high score, lenders are more likely to offer you competitive rates. 

Credit Score Improvement Tips

Credit-building strategies that you can employ to improve your credit score over time include the following: 

Keep an Eye on Your Credit Reports

  • It helps you to know what works in your favour when you start taking loans and repaying them. 
  • Moreover, credit reports can sometimes have inaccuracies, which may be pulling your score down. Raise a dispute if you find any errors in your credit report.

Keep Credit Utilisation Low

  • A higher credit utilisation ratio represents a higher dependency on debt and a lower likelihood of timely repayment. 
  • Experts suggest that your credit utilisation ratio must be below 35% of the total limit.

Repay Bills and EMIs on Time

  • Repayment history has the biggest impact on your credit score, so pay your monthly instalments or bills as per the due date or even earlier.
  • If you default on loan repayments, it remains on your credit report for a long time. 
  • What’s more, your credit score will take some time to recover after default payments, making it difficult to get a loan in the future.

Avoid Making Multiple Requests for New Credit 

  • When you apply for credit, lenders make two types of credit inquiries: hard checks and soft checks.
  • While the former knocks off a few points from your credit score, the latter has no impact on it.
  • If you apply for loans with multiple lenders within a short timeframe, your credit score may get damaged.

Also Read: Easy Tips to Improve Credit Score

Loan Companies Using Experian

There are over 5,000 banking and financial institutions across the country who use Experian for credit checks.

As your credit score is an important factor that lenders consider when deciding on your loan request, you must check it regularly. Checking it ahead of a loan application allows you to get errors rectified or improve your score over time. 

As Fibe uses an alternate credit scoring system, you can get a cash Loan even if you have a low credit score. Download the Fibe Personal Loan App or visit our website to enjoy quick and hassle-free funding of up to ₹5 lakhs with competitive rates and flexible repayment. 

FAQs on Experian Credit Score

Can we get a loan on Experian credit score?

Yes, many lenders in India offer a loan based on your Experian credit score, provided that you have a higher score than the minimum requirement.

Which score is better: Experian or CIBIL?

Both Experian and CIBIL scores have their own benefits. Over 90% of Indian banks use CIBIL scores to check their customer’s creditworthiness.


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