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How to Improve Your Experian Credit Report

Over the years, the significance of the credit report has grown manifold. It has widespread implications on all your financial decisions, especially credit-related. As you may already know, the primary goal of a credit report is to aid financial institutions like banks and Credit Card companies understand the creditworthiness of a borrower and, thus, avoid defaults. It essentially helps them evaluate the borrower’s financial behaviour and ability to manage debt. Lenders then decide to offer a financial product to a given customer based on their credit report.

To derive a credit report, credit information companies such as Experian, CIBIL, etc., consistently gather data about an individual’s financial habits. They then compile the collected data in the form of a credit report that lenders can view. This makes it very important to maintain a good record on your credit report. Now, there may be times you falter, and default marks appear on your report. However, they are not permanent, and you can rectify your Experian credit rating.

In this article, we will provide you with some tips to improve your Experian credit report. Let’s take a look.

Tips to Improve Your Experian Credit Report

  • Make Timely Repayments:

You may be aware of the importance of making timely repayments on your Credit Cards and loans but it cannot be emphasized enough. Timely repayments have a major impact on your credit report. Ensure that you pay your Credit Card bills and loans before or on the due date. Delaying a single monthly payment can lead to a significant drop in your credit score, depending on how many days it takes you to complete the payment. Also, ensure that your bank is recording your payments on time. If you notice any discrepancies in the same, bring it to the notice of your bank immediately.

  • Limit Credit Applications:

It is tempting to get credit to serve different purposes. However, the indication of too many ongoing debt accounts on your Experian credit report can make lenders cautious. They may think that you are credit-hungry and do not have the capacity to service more loans and, in turn, reject your subsequent applications.

  • Rectify Errors:

If you do notice any errors in your Experian credit report, you must make sure to rectify them immediately. The company ensures that errors do not surface, however, there may be instances wherein the data is noted incorrectly. Hence, you should always keep an eye on the entries in the report. If you do think that there is an error, bring it to Experian’s notice and get it rectified. Make sure that the issues are corrected at the earliest to prevent your credit score from getting affected.

  • Avoid Application Post Rejections:

Do not reapply for a Credit Card or a loan at other banks if it has been rejected by one bank. Every query that you make with a bank is recorded in your credit report. Recurrent queries are visible to other banks and make you come across as a desperate borrower.

  • Use Credit Cards Sparingly:

Using your Credit Cards sparingly will considerably help in improving your credit report. Ensure that you have more than 50% open in your credit limit, otherwise, it would reflect your dire need for credit each month. It also negatively impacts your credit score.

  • Inform the Bank in Case of Inability to Repay:

There may be uncontrollable instances when you may not be able to make repayments. These could be situations like a job loss, illness, death in the family, and more that affect your ability to fulfil your obligations. You must inform your bank about such a situation as it will help you with a solution. No matter what, do not default on your payments as it negatively affects your Experian credit report.

  • Experian Credit Report Score Range:

As with most other credit information companies, Experian assigns a credit score in the range of 300 to 900. You must be cautious and take steps to improve your score as soon as it drops to 700. A low Experian credit score will affect your chance of successfully getting credit during an emergency.

Bottom Line for Improving Experian Credit Report

Now that you know how to improve your Experian credit report, it is time to take action. Evidently, improving your Experian credit report is not an impossible task. It is a simple process that requires financial discipline and consistency. If you follow the above-stated tips, there is nothing that can stop you from having a noteworthy credit report.

While you follow these healthy credit habits, you must also use the Finserv MARKETS free credit check platform to check your CIBIL score. The detailed health report will help you stay effectively on track with your finances. Visit Finserv MARKETS, today!

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