In a world, we are living in, we all need some kind of credit in our life at some point in time. It can be in the form of credit cards or loans. Whatever it may be, do you know what is that one thing that holds an important part in deciding your application for the credit cards or loans? Well, this thing is known as the credit score. Each individual can have different credit scores based on their financial behavior. If you don’t have much knowledge about it, then you don’t need to worry as we would be telling you about it in detail.
There are many credit rating agencies functioning in India that track the financial behavior of customers. But there are mainly four of them - CIBIL, Experian, Equifax, and CRIF High Mark. In this article, we will talk about the Experian Credit report and what importance does it hold in your financial life. If you are someone who wants to apply for a credit card or a loan and confused about the role of the credit report, then don’t worry as we will be telling you all about it. So keep on reading! What is the Experian Credit Report and Experian Credit Score? To know about the credit score, it is important to know about the Experian Credit Report. Talking about credit reports, it consists of all your financial transactions. It can be anything. Be it your loan repayments, debts, or utility bills. Credit reports are maintained by the credit rating agencies of India. Experian is one of the leading credit rating agencies at which lenders also trust very much. Based on your Experian credit report, your credit score is generated. This score determines your all over creditworthiness and ranges from a score of 300 to 900. If you are thinking about what is an ideal score for getting credit cards or loans, then let us tell you that lenders believe that any individual having a score of 700 or above is considered to be a fit for any credit facilities. A score of anything below 700 is considered to be a poor score and borrowers may find it hard to get any credit facility with such a poor credit score. What are the factors that affect your Experian Credit Score? When you apply for an Experian Credit report, you can have a look at your credit score and what are the factors that have been affecting it. You can have a look at them below. Recency: The recency factor shows the recent defaults in your credit account. If you have made any defaults in your debt repayments, then it will affect your credit score negatively and vice versa. That’s why it is always advised to make your repayments on time. Leverage: All the credit accounts with on-time repayments history will automatically have leverage on the accounts that have been defaulting regularly. This factor also decides your overall Experian credit report, and hence credit score. Coverage: Your credit score will also be affected by the delinquent and non-delinquent accounts. Here delinquent credit account means when you fall behind on the debt repayments. The number of all these credit accounts could have a major impact on your credit score. Try to pay for all your due payments regularly. Delinquency Status: This is the period for which you fall behind your debt repayments on all your credit accounts over current and recent periodic intervals. Credit Applications: Multiple credit applications over a small period ( last 30 days) may also harm your credit score and it will show in your Experian credit report so it is advised to have proper time interval between multiple credit applications because it may show you as a credit hungry borrower.
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Anika Sharma
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