- HOW IT WORKS?
- Credit Score & Report
- Credit Bureaus
Experian is the first ever licensed Credit Information Company that came to India which started after the Credit Information Companies Regulation Act, 2005 was passed. This organization helps in analyzing and managing the risks due to credit for both lender and receiver. Experian is a Dublin based company that have experience in operating credit information across 19 different countries and provide a perfect service of giving a credit report with clear segmentation, risk monitoring framework, optimization, bureau-based hybrid scores, custom scores and analytics that would lead to a reduction of deceptions, identity theft and overdue problems. Experian Credit Information Company of India is a private organization and has collaboration with Axis Bank, Federal Bank, Indian Bank, Magna Finance, Punjab National Bank, Sundaram Finance and Union Bank of India.
Experian Credit Report
An Experian credit report is a collection of data that contain every small and big credit history of an individual that includes credits taken or being used in form of:
- Credit cards
- Home loans
- Car loans
- Educational loans
- Personal loans
All the details that are provided by you are verified with the credit institutions or banks and are summarized in your report. A score between 300 to 900 based on your credit information is also provided on the credit report for estimating your likeliness for being a good borrower.
This score is classified on a color scale that ranges from red to green in which red indicates that you have a bad credit reputation and dark green makes you a worthy credit customer. The colors in between like orange, yellow are kind of neutral.
Principal Factors of Score Estimation
This score is based on the five factors called recency, leverage, coverage, delinquency status and credit applications that talks about timely payment, repayment status, delinquency or non-delinquency of an account, the recent status of delinquent accounts and recent credit applications that are associated with your account.
A summary data that contains information of closed and active credit accounts will be included.
This report also issues the credit information details that are reported to Experian Credit Bureau database along with specific details of bank and your personal information mentioned in it. It also states the status of the delinquency.
A payment history table is given to analyze your punctuality in paying your dues by adding a due indicator. An indicator is a number or an alphabet that says whether you have paid the dues on time or with a delay, for example;
- 0 indicates that all your dues are up-to-date
- S means you are a standard customer with overdue of less than 90 days and
- L means Loss and the account have not been partially or fully written off.
All this information in the credit report is strictly based on RBI guidelines and the details of the lender and your information with them would be mentioned in the report. A credit report also informs the recent credit enquiries made along with its specificities. All the information provided would help in finalizing the credit score and let the lender or credit institution to find whether you are a good credit customer. If you have a high score you are more favorable credit customer.
Apart from the above, a credit report also aids you in
- Protecting identity theft
- Personal financial management.
- It will help you decide whether you can take any new credits and to self-monitor the existing ones.
Procedure to apply for Experian credit information report
Experian Credit Report can be applied by placing a request for a credit report on the Experian website after filling an application form with all the necessary information including both credit cards and loan accounts that are active or closed.
To apply for a credit report you need to provide
1. A valid identification proof such as passport or voters ID
2. An address proof like bank statement or electricity bill that are recently issued (not more than three months old).
3. An amount of Rs399 has to be paid for an online application and this is inclusive of all the taxes.
4. For application through the post, a Demand draft for Rs138 can be sent along with the application and the copy of the identification and address proofs.
5. The payment can also be made by a national electronic fund transfer (NEFT) to the provided bank details on our site.
It usually takes about 20 days to send you a complete verified credit report and the report can be accessed either by logging in into your account on Experian site or from the copy that is sent to the provided E- Mail Address. Experian credit report has to be precise because every information mentioned is vital for a credit institution to decide your potential as a good credit customer both for credit cards and any kind of loans. It also helps you from securing yourself from the currently prevalent identity scams.
Experian Report Number
Every Experian Credit report is given an ERN which means Experian report number. This fifteen-digit code number is essential and is required every time you place a request regarding your credit information report. In case you lose a credit report and you apply for a new one; you will be given another new ERN.
ERN assistance to improve your Credit Score
ERN also helps in applying a correction that has to be made on your credit report.To apply for a correction, you would have to fill an application form from the Experian website and submit the filled form along with your identity proof as well as address proof. Any errors on the report have to be made right because it would affect your credit score greatly and in turn your future capabilities of taking a credit from any institution. Hence when applied for a correction, Experian will take it seriously but we have no authentication to make changes on the details enclosed by the bank or credit institution by ourselves, so Experian would contact the particular credit institution or lender and raise the query for the need to change, if they agree then the necessary changes will be made on the report and updated to you.