Experian Credit Score: How to Check, Benefits & Importance

What is an Experian Credit Score?

What is a Good Experian Credit Score?

As mentioned above, an Experian credit score ranges from 300-850. Here, 300 is the lowest possible score, and 850 is the highest. Generally, a higher score indicates that a person has a more financially sound position.

Here are the ranges or categories of an Experian score:

Score

Category

Meaning

NA/NH

No Score

You do not have a credit history.

300-549

Poor

Poor history of financial management, payment defaults and poor credit utilization, You will be considered a high risk and lenders will be wary of extending credit.

550-649

Fair

Some instances of payment defaults, unsecured loans, etc, You will be considered a risk to lenders, as you might be liable to default.

650-749

Good

A balanced credit history, demonstrating financially sound decisions, and timely repayments, You will be considered a low-risk borrower, and lenders will extend credit.

750-799

Very Good

Good history of financial management, utilization of credit, and regular repayment with no defaults, You have proven your creditworthiness, and lenders will consider you a low risk when it comes to extending credit.

800-850

Excellent

This is the highest range given by Experian, and indicates an individual with a nearly perfect credit record, You will be considered very low risk, and will also likely get better deals on loans and credit cards.

What is the Importance of having a Good Experian Credit Score?

How is Experian Credit Score Calculated?

An individual’s Experian credit score, and their credit report, is calculated based on five major factors. Each of these factors will contribute to a different percentage of your final score. They are as follows:

Factors

Percentage

What Affects These Factors?

Payment history

35%

Regular payments on your credit accounts, like credit card bills, loans, and EMIs can help your score, Missed payments or defaulting could hurt your score.

Credit usage

30%

The amount of money you owe, your account balances, and how much of your credit limit that you use are all factors

Length of credit history

15%

The average age of your credit accounts is considered here, Older accounts and credit cards can reassure lenders that you have a responsible credit history.

Credit mix

10%

This refers to the types of accounts or credit you have, Having a good mix of unsecured loans (ex. credit cards and personal loans) and secured loans (ex. car loans or home loans) is recommended, as it shows you can manage both types.

New credit

10%

This refers to whether you have recently applied for new credit (like loans or credit cards) or recently opened new accounts, A higher number of enquiries can bring your score down.

How to Check your Experian Credit Score?

Can you improve your Experian credit score?

Frequently Asked Questions