Are you someone who has already been on a financial journey? Well, if yes, it would not be wrong to say that Experian is one such name you must have heard. That’s Right! Being a renowned and reputed credit bureau of India, Experian is a reliable credit rating agency that mainly collects and maintains the data of individuals.
Now you must be wondering what sort of data? Well, the data of credit history and repayment record of not only the individuals but commercial entities as well. These are the agencies that mainly calculate your score and also generate an Experian credit report.
You must have heard a lot about a Experian credit score or what a three-digit numeric summary is all about but what about a credit report? Are you aware what a report stands for, how it is generated and how it is calculated? Well, today, in this article, we are going to talk about all these things and a lot more. So, without wasting any time further, let’s just come to the point straight…
What is an Experian Credit Report?
It is nothing but a detailed and unified document that contains each and every credit-related data of an individual’s credit history and repayment record. This document is a complete cheat sheet of your credit activities such as loan/credit card details, defaults, credit limits, transaction details and what not. After the complete and thorough evaluation of the data, this report is prepared by these credit rating agencies.
Let’s just get more clarity on the same in the article below…
How is a Report is Generated?
There are many prominent factors that give their contribution towards generating a good score. These agencies after the deep analysis of many factors calculate the score so that you can have a hassle-free journey ahead. Let’s just take a look at those factors in the points below.
- How many credit accounts you have
- How much you owe in total in credit
- Whether you have missed any payment
- How many credit applications you have made in last 6 months
Now let’s give you more sneak peek about the entire process. Basically, how these agencies calculate the score and how the same will reflect on your report? Wanna know the answer of the same? All you need to do is just read the article below.
How is Credit Score Calculated?
The calculation of the score is basically done after taking into account many factors. It is done on the basis of the payment history which includes certain factors such as one-time credit card bill payment, credit limit usage, EMI deductions and so on. All your credit- related activities are under the scanner as both the lenders as well as the agencies keep an eye on everything, hence then decide the score of the individual, which gets reflected in your Experian credit report.
Talking about the credit score, it ranges between 300-900. And, most of the lenders consider a score of 700/750 out of 900 enough good to grab a deal. So, one should always try to maintain a good score for lucrative offers in the future.