April 25, 2025
What Is Your Experian Credit Report? Explain It
By : Ellie Brown
Experian is a credit reference agency that prepares credit reports based on financial and payment history. Experian Credit Report is a record of your financial behaviour which shows your credit history for the last six years. It mentions a summary of your payment record.
It includes how you manage your finances and operations, such as loans, credit cards, mortgage overdrafts, utility bills, phone contracts, electricity, gas and water bills, etc.
Your credit score is decided on the basis of this. A poor credit score means that you have not paid some of your bills and debts on time. You can improve this credit rating by improving your financial behaviour or paying obligations on time.
Elements of Experian credit report
- Personal information – It includes all kinds of personal information of an individual.
- full name,
- date of birth,
- current and previous addresses,
- Social Security number,
- Employment history.
- Credit summary,
- Overview of total accounts including open and closed,
- Total balance and available credit.
- Account types such as mortgages, credit cards, auto loans, or more.
- Number of accounts in good standing versus negative status.
- Account history
Detailed list of credit accounts like –
- Account number (partially masked)
- Creditor name.
- Type of account. (revolving instalment, etc.).
- Date opened.
- Current balance
- Credit limit and loan amount.
- Payment history.
- Status like open, closed or delinquent.
Public records
- Tax liens
- Bankruptcies
- Civil judgements (Note: most of these are no longer rejected)
Credit inquiries
- Hard credit check inquiries – When a loan company checks your credit report before approving your loan. It affects your financial records.
- Soft credit check inquiries – Pre-approvals, background checks, or personal checks. This does not affect your credit rating.
Collections
- Accounts already sent to collection agencies
- Original lender and collection agency details
- Amount owed
- Status of the collection
Consumer statements
- Any personal statements like dispute notes, fraud alerts
How does Experian calculate your credit score?
Several factors play a significant role in credit score. These factors have a specific percentage as their role in deciding the credit rating.
| FACTOR | WEIGHTAGE |
| Payment history | 35% |
| Length of credit history | 15% |
| Credit utilisation ratio | 30% |
| Types of credit accounts | 10% |
| Number of credit inquiries | 10% |
What’s your credit report used for?
Your credit report is used for financial purposes. Let us know the reasons for which you need your credit report. Finance companies need your credit report for various purposes, not only you.
- Getting approved for credit – Whenever you apply for a loan, the lender checks your credit report. Through this, your payment history is known. Fund approval is possible only if you have a strong repayment capacity.
- Renting a home – It is important for landlords to check the credit reports of prospective tenants to know their payment history in previous rental houses. Tenants who maintain a good payment history easily get houses at affordable terms. Tenants with poor payment history have to pay higher deposits.
- Insurance – Many insurance companies decide on insurance based on credit score, and the premium is finalized accordingly. If you want to get a better insurance policy at a lower premium, it is important to improve your credit score.
- Employment – In many sectors, like the finance sector, employers also check the credit rating of their prospective employees. Many times, existing employees also lose their jobs due to poor credit ratings. Candidates with good credit ratings get the benefit of this during job interviews.
- Utilities and cell phones – For cell phones or utility contracts, credit rating or credit report is checked. On that basis, the water, electricity and cell phone companies decide the terms of the contract. If a poor payment history shows up in the credit report, the applicant gets the services by paying a huge deposit.
Why you should check your credit report regularly?
There are many reasons why you should check your credit report regularly. It plays a very important role in your financial life. Checking your credit report is also considered an important step before making any major financial decision.
- Remove errors – Many times, wrong details are mistakenly mentioned in your report. For example, a non-closing account that you have closed or a pending bill that you have paid can show. This has a negative effect on your credit report. This leads to a lower credit score. By checking your report, you can remove these errors and improve your credit rating.
- Spot fraud or identity theft- If someone opens a credit account in your name for fraud, it will show up on your credit report. This helps you detect identity theft by detecting unfamiliar accounts. If the issues are not caught on time, it can cause serious damage to your financial records.
- Prepare for big purchases – If you are thinking of applying for a car loan, mortgage or any other loan, you should check your credit report. This helps to you know your income, credit score and financial situation. You can bargain better with the lender regarding the interest rate according to your financial circumstances. Along with this, you will also know whether you need to improve your credit score before applying for a loan or not.
- Monitor your credit health – It is advisable to check your credit report regularly to find out your overall credit health. This helps you make better financial decisions. It is not necessary to check your report every time to check for any errors. This helps you know about the impact of factors like missed payments and pending balances on your credit score and helps you follow the right financial behaviour.
Conclusion
Many of your important decisions are made through your Experience Credit Report. From deciding your credit score to getting funds approved by loan companies, this credit report is useful everywhere.
Although this report is a mirror image of your financial behaviour, even though it is prepared by credit reference agencies, it shows exactly the kind of decisions you are making regarding your finances.
Experian prepares credit reports not only for individuals but also for businesses. For a spotless report, improve your money management skills.