What is an Experian credit score?
The Experian credit score is a representation of how a lender will view the information on your credit file.
Their score ranges between 0 to 1000, the higher the score, the healthier is the credit report.
What is considered a good Experian credit score?
Experian uses the following range for their credit score:
- If your score is between 800 to 1,000, then it is an excellent score which is well above the average.
- If your score is between 700 to 799, then is considered a very good score.
- If your score is between 625 to 699, then it is considered a good credit score.
- If your score is between 550 to 624, then it is considered a fair credit score.
- If your credit score is below 549, then it is considered below average and is regarded as a poor credit score.
- The type of credit provider that has made enquiries on your report.
- Type of credit product you have applied for (credit card, loan, etc).
- Repayment history.
- The credit limit on your credit products.
- Number of credit enquiries you’ve made.
- The number of negative events (late payment, loan defaults, etc).
- Contact e-mail/number.
- Copies of your identification documents (Driver’s license, Passport, government-issued public employee photo ID, etc).
- A completed copy of the Experian Credit Report Request Form.
- Make consistent and timely repayments on your mortgage, loans and credit cards.
- Even if you have missed a payment, Experian allows a 14 days grace period. So if you pay within the 14 days, it will not show up as default.
- Do not consistently have consecutive missed payments for your loans or bills.
- Try to avoid getting more negative listings like defaults, court judgements, etc. on your credit file.
- Always stay updated with your credit file and check it regularly to ensure that new information is reflected on your credit file.
- If there is an incorrect listing, rectify them immediately by contacting Experian or the credit provider who has listed the wrong information.
- Reduce your credit card limits as lenders might view a higher limit as having more debt or ongoing payments. Thus, increasing risk to them.
- Try to limit your credit card applications.
- Seek assistance from a financial counsellor if you’re facing financial hardship and cannot keep up with payments. Getting help from them will not affect your credit score.
- There is new information that is updated on your credit file like when you applied for a new credit card, enquired about a mortgage, etc.
- Old information that was on your credit file has dropped off, as there is a set period of time where your credit is held, which is usually 5 years. Once the time is up, the credit information is automatically removed from your credit file.
- Experian does update its credit score algorithm to ensure that the score is relevant and accurate.
- The first thing to do is to check your credit report and score and review them for errors. Rectify any incorrect listing or error asap. You can get a free credit score from Experian.
- Do not apply for new credit or loans like auto and personal loans months before applying for a mortgage. Try to avoid activities that will put enquiries into your credit file.
- Reduce your owning amounts and try to pay down your debt. Try to limit the spending on your credit card.
- Since late payments decrease your credit score, make sure to pay your bills and credit on time. Consider automating payments so you don’t miss them.
Since your credit score keeps changing according to your financial behaviour, you have to keep updated on your credit score and credit report.
Do home loan providers use Experian?
Yes, the big four banks of Australia tend to check credit reports from all three credit bureaus i.e. Equifax, Illion and Experian, as defaults listed on Experian might not show up on other credit reports.
This is because not all financial institutions report all the same information to credit reporting bureaus, although this is a rare case.
However, most smaller lenders typically use Equifax.
Also, since the introduction of Comprehensive Credit Reporting from July 2018, Experian’s credit report will also reflect new information such as the 24 month repayment history, type of credit and loan amount, nature of credit account, etc.
How does Experian calculate my credit score?
Experian uses a statistical algorithm that uses past data to predict future behaviour.
The following information is used to calculate your credit score.
How to order my Experian credit report?
You’re entitled to get a free credit report from all three credit reporting bureaus every twelve months. And additional reports, if you’ve been declined.
There are two ways you can get a hold of your credit report, one is through email and the other via post.
If you want to order your credit report via email, you have to provide your:
If you want to order your credit report via post, you will have to send the Experian Credit Report Request form and copies of your identification documents to the following address:
Experian Australia Credit Services Pty Ltd
Attention: Consumer Support Team, GPO Box 1969, North Sydney NSW 2060
How to check my Experian score online?
You can checkand track your Experian credit score through Creditsavvy.
Signing up to Creditsavvy is simple, you’ll require one form of ID to do so.
It is best to check your credit score regularly so you know where improvements can be made if your score is low.
How to improve my Experian credit score?
While improving your credit takes time, it does pay off since you get a higher credit score which increases your chances of getting your home loan application approved.
Here are ways to improve your credit score:
Frequently Asked Questions
Does checking my Experian credit report affect credit score?
No, checking your own Experian report only creates a soft enquiry which is recorded in the Access Record Report section on the report.
A soft enquiry like this has no impact on your credit score.
Is the Experian credit score accurate since it keeps changing?
Yes, the credit score is accurate and it is normal for it to change due to the following factors:
These factors will have a hand in determining your Experian credit score.
What if I don’t have an Experian credit score?
Even if you have no credit score, you might still qualify with some lenders.
The lenders might consider your application if you have strong income and stable employment.
How can I get my credit report ready for a mortgage?
Your Experian credit score is a reflection of how you are as a borrower.
You should focus on building your credit, and avoid putting any more credit enquiries at least six months before you apply for a home loan.
Here are some tips you can follow to get your Experian credit report ready before you apply for a home loan:
What Experian score is needed for a home loan?
Different home loans exist that have their own minimum credit score requirements. Some lenders have very strict criteria when assessing your credit score to determine your creditworthiness.
A good Experian credit score (800 and above) will provide you with a range of home loans at competitive interest rates.
If your credit score is low, then your options are limited, but you can still qualify for a home loan.
Known as bad credit home loans, these loans are designed to help people with bad credit secure a home loan.
Once your credit score improves, then you can refinance the bad credit home loan to a home loan with competitive rates.
Do you have a bad or low credit score?
Our award-winning mortgage brokers are credit experts.
They can help you find a home loan for you, even if you have a low credit score.
Get in touch with us by filling in our free assessment form or by calling 1300 889 743 today.