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.

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:

• 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.

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.

Experian uses a statistical algorithm that uses past data to predict future behaviour. The following information is used to calculate your 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).

Find ways around a bad credit score through our Home Buyers Program. We have all the right details.

Start The Process: Go to Experian’s website and select “Check your FICO® Score for free” to begin. Enter the last four digits of your Social Security number and your phone number to proceed.

Verify Your Identity: A confirmation link will be sent via text; click it, then return to your browser. Provide or confirm your full name, date of birth, full Social Security number, and current address.

Create Your Account: Set up your account by creating a password and using your email as your username.

View And Understand Your Score: Once logged in, your FICO® Score 8 will appear on the main dashboard. Click on your score to see details about what’s affecting it, your debt summary, and score trends over time.

Optional Tools And Upgrades: You can also register and check your score through the Experian mobile app instead of a browser. A paid upgrade gives you access to scores from all three credit bureaus and additional services like identity theft protection and bill negotiation. If you're preparing for a major loan, like a home mortgage, it’s helpful to review all versions of your FICO® 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:

• 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.