Experian is a globally recognised information services company and one of the major credit bureaus in India. It provides credit score and reports to both lenders and consumers as per the Reserve Bank of India (RBI) guidelines and the Credit Information Companies (Regulation) Act, 2005. The Experian credit report and score are reflective of one’s repayment history, and hence play an important role in being approved for a new loan or credit card. In the following sections you will find key details about Experian credit score and report, including tips on how you can achieve and maintain a high Experian score.
What is Experian Credit Information Report?
Experian Credit Information Report, also known as “Experian CIR” refers to a detailed record of your credit history i.e. details of your past loans and credit cards that you have availed or applied for. It also contains information about your identity and the requests for you credit score as made by various lending institutions of India.
The following table gives a section-wise summary of the information present in the Experian credit report:
|Credit History||Information about the type of borrowing, current balance, date of loan, payment history, details of any prior defaults on credit card dues/loans, etc.|
|Personal Information||Includes name of the consumer, address of the consumer, and other identifying information, including date of birth, PAN card number, etc.|
|Enquiries||This section contains information about the enquiries made by various financial institutions as a result of credit applications made by you along with the type of credit facility (loan/credit card) and loan amount/credit card limit, etc.|
What is Experian Credit Score?
“Experian Credit Score” refers to the numeric summary of your credit information report (CIR) as calculated by Experian India. You score is calculated from the repayment history of your previous and existing loans and credit cards, including the details of enquiries made by various lending institutions, such as banks and non-banking financial companies (NBFCs). The exact Experian credit score calculation formula is proprietary information thus protected by law.
It should be noted that the credit score provided by Experian India varies between 300 and 900. The close your Experian score is closer to 900 (such as 750 and above), the greater your chances of being approved for a new loan or credit card.
Also read about CIBIL Score.
Why are Experian CIR and Credit Score Important?
Experian Credit Information Report and Credit Score are a direct reflection of your creditworthiness. In other words they represent your suitability to receive approval for future credit such as a credit card, personal loan, home loan etc. Hence, they play a crucial role in getting a loan or a credit card approved. A high Experian score not only improves your chances of approval for a new loan or credit card but may also help you get a lower rate of interest, higher loan amount/credit limit, lower processing fees and other benefits.
Read more about CIBIL.
How to Check Experian Credit Score Online?
You can either get the Experian credit information report and score for free from Paisabazaar.com along with free monthly updates or you can avail the same from the official website of Experian India for a fee of Rs. 399.
Procedure to Check Experian Credit Score for Free from Paisabazaar.com
Step 2: Check your registered e-mail ID (as provided at the time of Experian credit report request) to access your Experian credit information report as well as your Experian credit score. Please note that Paisabazaar.com sends a password-protected file of your Experian report for added security which you have to enter to check your Experian credit score included in the report.
Procedure to Check Credit Score from Experian.in
Step 1: Visit the Experian user login portal, and enter your full name as per PAN card, email address, mobile number and the OTP sent to your mobile.
Step 2: The following web page will be displayed. Enter your date of birth, gender, PAN card number, address and pin code. Check the declaration box and click on “Get Report” button to proceed.
Step 3: Subsequently, you will be directed to a payments page where you have to pay a fee of Rs. 399 (including taxes) to access your Experian credit information report and credit score directly from Experian India.
How to Get Experian Credit Report and Credit Score Offline?
You can also get your Experian credit information report and credit score offline by following the procedure described below:
Step 1: Download and fill out the
Step 2: Self attest a photocopy of your passport/ PAN/ voter ID as a valid identity proof.
Step 3: Self attest a photocopy of your electricity bill/ telephone bill/ bank account statement/ rent agreement/ deed of purchase or sale as a valid address proof.
Step 4: Pay the fee for Experian CIR via a demand draft or through NEFT.
Step 5: Send the form along with the applicable documents to the following address:
Experian Credit Information Company India Pvt. Ltd.
Consumer Services Equinox Business Park, Tower 3, 5th Floor,
East Wing, LBS Marg,
Kurla (West), Mumbai 400070.
How is Credit Score Calculated by Experian?
Like other Credit Bureaus, Experian also has several financial institutions as its members. These member institutions, including banks and NBFCs periodically submit the credit data of current borrowers (loan/credit card borrowers) to Experian. These submissions are in accordance with Reserve Bank of India (RBI) guidelines and under regulations specified by the Credit Information Companies (Regulation) Act, 2005.
Experian uses this information to prepare your credit information report. Subsequently, Experian uses key aspects of this credit history data and a proprietary algorithm to generate the 3-digit number between 300 and 900. This 3-digit number is designed to summarise your credit history and is commonly known as the Experian score. While the score generating formula is protected by law and not exactly known, the following are some of the key factors that are known to affect your credit score:
- Repayment history,
- Credit utilization ratio,
- Length of credit history, and
- Total number of loans and cards availed by you.
What are the Various Services Offered by Experian?
Following is a list of the major services offered by Experian to its member financial institutions as well as individual consumers.
Services Offered to Members
- Experian offers 24×7 access to credit information reports of potential borrowers.
- It helps the member financial institutions to mitigate risk associated with lending by providing them with consumer reports.
- It provides comprehensive business and financial information on companies from more than 200 countries.
- Moreover, Experian provides insights into a business and its credit account payment behaviour.
Services Offered to Consumers
- Experian provides credit information report and credit score to individuals based on the information provided by various financial institutions across the country.
- Further, it helps the consumers to correct any inaccuracies in credit report.
How can I Improve my Experian Credit Score?
Follow the below mentioned tips to improve your Experian credit score and also your chances of getting approved for credit such as loans at a low rate of interest:
- Always pay your loan EMIs and credit card dues on time. In case you haven’t done this is the past, start doing so now and your credit score will start improving quite soon
- Maintain a low credit utilization ratio, preferably less than 30%. Credit utilization ratio is calculated using the formula – Total Credit Availed/Total Credit Available across all credit (loan/credit card) accounts. In simple terms, don’t use more than 30% of the total credit available to you
- Regularly check your credit report and credit score, as any discrepancies can negatively impact your credit score. If you find a discrepancy/error request a rectification immediate
- Avoid submitting multiple loan/credit card applications within a short time. Doing this may portray you as credit hungry and decrease your creditworthiness.
Frequently Asked Questions (FAQs)
Q1. What is Experian Report Number (ERN)?
Ans. Experian Report Number (ERN) refers to a 15-digit unique identification number present on the top right of your credit information report. You need to quote this number on any communication with Experian, as the credit bureau uses it to validate your information.
Q2. How often is the Experian CIR updated?
Ans. Generally, member financial institutions submit data on a monthly basis. For example, Bank A might submit an update to Experian on 1st of every month while Bank B might submit an update on 20th of every month. Hence, your Experian CIR gets updated on a monthly basis as soon as the data gets uploaded in its database by the applicable financial institution(s).
Q3. Does Experian credit score changes with monthly updates in the credit report?
Ans. Yes, your Experian credit score may change with monthly updates in the credit report. For example, your score may increase on paying off a loan or may decrease on missing loan EMIs.
Q4. Will checking my own credit score result in a lower score?
Ans. No, checking your own credit score and credit information report constitutes a soft enquiry, and this does not lower the score. However, when a prospective lender/card issuer requests your credit score/report, it constitutes as a hard enquiry (hard look) and this can decrease your credit score. This is the key reason why you should not apply for multiple credit cards or loans at the same time.
Q5. How can I initiate a dispute online with Experian?
Ans. You can raise an online dispute with Experian, in case there are discrepancies/errors in your CIR by following the steps mentioned below:
- Log into your Experian account.
- Go to the “Dispute” tab and click on “Raise a Dispute”.
- Fill out the credit report information required and details of the dispute you wish to raise.
- Click on “Submit”. You will receive a tracking number after your dispute request is submitted. Preserve this number and use it for further communications with Experian India.
After submission you should receive a response from Experian India within 48 hours. Actual rectification/dispute resuolution may take longer depending on the complexity of the issue.
Q6. How can I check the status of a dispute raised with Experian?
Ans. Login to your Experian account and click Dispute > Track Dispute to check the status of an online dispute raised with the credit bureau.
Q7. Who can access my Experian credit information report and credit score?
Ans. The Experian score and CIR can be accessed by the following:
- Members of Experian including individuals accessing their personal score and CIR
- Users/Institutions specified as per the Credit Information Companies (Regulation) Act, 2005
- Institutions who have received consent from credit card/loan applicants
Q8. Why do I not have an Experian credit score?
Ans. You may not have an Experian credit score or a credit score from any other credit bureau in India in the following cases:
- You have never taken a credit card or a loan, i.e., you don’t have a credit history.
- You are very new to credit such as user of credit card/borrower of a loan for less than 1 month or
- You have not used any credit (loans/credit cards) in India in the past 10 years
- You are an add-on credit card user and not the primary account holder of the credit card account
Q9. What is Unique Transaction ID (UTI)?
Ans. Unique Transaction ID (UTI) is a unique reference number present at the top right corner of your Experian India credit information report. It is used to validate your information every time you communicate with Experian India.
Q10. What is the meaning of a credit enquiry?
Ans. A credit enquiry refers to a request made by an institution to access your credit information report from a credit reporting agency. The enquiry can be hard or soft in nature, depending on the institution performing the enquiry. While an enquiry made by a lender constitutes a hard enquiry, an enquiry made by an individual for their own credit score (either directly from Experian or through an official partner of Experian such as Paisabazaar) constitutes a soft enquiry.