Facts You Don’t Know About an Experian Credit Score

A credit score is essential. It opens up all the financial opportunities for an individual to attain help during a financial void. If you are stuck with a score below 700, you might face some issues with the loan approval. A good Experian credit score is 750 and it makes an individual eligible for any kind of financial product. A credit score determines the creditworthiness of an individual.

There are some measures and practices along with the free credit score check that needs to be taken up by every borrower to enhance the score. If your free credit score is low you need to improve it after understanding everything about it it.

Check your credit score

• Visit the free credit score check website.
• Mention your Full Name, Mobile Number, and Email ID and click on the ‘Submit’ button.
• An OTP is sent to the registered mobile number
• Submit the OTP and click on ‘Verify & Continue’
• Select your Date of Birth and Gender
• Provide your Permanent Address including the state, city, Pincode
• Enter your PAN Number and submit
• You will get your credit score.

What determines your Experian credit score?

• Payment history: the payment history takes up 35% of your credit score. This is a huge number. Whether you have paid past credit accounts on time will be determined here.
• Length of credit history: The length of credit history is around 15% and that is why it is said that even when you do not use an account keep it open. This will increase your credit score.
• New credit: The new credit and loan account that you open takes 10%. It takes for how often you apply for credit and how many loans and credit lines you have taken.
• Credit mix: the credit mix takes 10%. The variety of credit products you have, including credit cards, installment loans, finance company accounts, mortgage loans, and auto loans.

Things that don’t affect credit score

• Debit card: Using a debit card to pay for items won’t impact your credit history or credit scores. Your debit account does not have any impact on your credit score.
• Salary deduction: A salary deduction will affect your expenses and personal and financial life, but will not directly affect your credit scores.  Learn How to calculate business loans by using a business loan calculator
• Education qualification: Even if you pass out from the top global universities, you will not improve your credit score. Your credit score will not have anything to do with your academic, background, education, and medals you receive.
•  You and your partner will not have your credit score exchanged for sure. You will have separate financial credit.

Things that affect your credit score

• Pay your bills on time: A credit score is subject to various measures and activities related to credit. Payments are an integral part that decides the credit score. Late payment is not at all a good credit activity as that damages your score
• Do not close credit accounts: It is possible that there are credit accounts that you don’t use and probably want to close the account. Let the credit age so that you get to improve your credit score.
• Do not pay minimum bill amount: A bill has two components, minimum amount and full bill amount. Do not keep any overdue or outstanding amounts.
• Have the right credit mix: A Credit mix is a mixture of ongoing loans that you have. Make sure you do not have all unsecured loans. There should be a good balance between unsecured and secured forms of loan. A good credit mix will help in maintaining your score.
• Do not use too many credit cards: Credit cards come with pre-approved limits. It is very expensive and the bills become a burden. Control the usage as it often leads to a debt trap

Finishing up

Do a free credit score check from Clix Capital and keep yourself updated. A free credit score is important to get a loan at the time of need.