Why And How Is Experian Credit Score Important

Why And How Is Experian Credit Score Important

People always tell you to be a little careful when it comes to credit score. But, have you ever thought why does it bother people so much to have a low score? Well, this is much more than it looks. It is not just a number but the power booster. There are many companies that are used to check it and among top ones is Experian.

The score generated by Experian is given the name Experian credit score. It takes into your past payments and accordingly generates your the credit report and score. In this article, you would also learn about the importance of the score to know more about it.

What does Experian Credit Score mean?

It is the numeric representation of how have you treated your past payments or lenders. It will directly impact the chances of fetching you great deals from lenders. Since it is considered by banks and other financial institutions whenever you apply for a credit facility.

How can you Check it?

If you want to check your score, you can follow the simple steps involved in the process:

  1. Provide your Full Name, Mobile Number, and Email ID and click on the ‘Submit’ button.
  2. You will then receive an OTP on the registered mobile number
  3. Submit that OTP and click on ‘Verify & Continue’ tab
  4. Mention your Date of Birth and Gender
  5. Provide your Permanent Address including the state, city, Pincode
  6. Enter your Permanent Account Number (PAN) and submit.

How is Experian Credit Score Beneficial for you?

When you apply for a loan or a credit card, lenders would check your score. If it above 750, your application will be considered eligible. If not, you will be rejected and hence you might lose the opportunities associated. Below are the measures that you need to follow to upgrade your Experian credit score.

7 Measures to Improve Your Credit Score

There are people who have missed some payments of their credit card or EMIs and that has affected their credit history which is something very common. You may read these below and follow them if your case is the same.

  • Avoid carrying credit cards that you do not need.
  • Don’t increase the limit just like that.
  • You may ask your bank to increase the limit but make sure it still remains within your repayment capacity.
  • Try not to use more than 50% of the card limit, it reduces the score.
  • Apply for any kind of loan to build a credit score.
  • If possible, continue your loan for the whole tenure, prepayments also have an impact on the credit score.
  • No matter what, pay your credit cards bills and EMIs timely.

With the above information, you must have got the idea on the concern that we raised in the title. Also, you have understood how Experian credit score works. So, don’t think much and get yourself ready to know more about if you want to.