What Is A Good Experian Credit Score?
A Good Experian Credit Score is arrived at by looking at your credit score number which represents the likelihood you will repay a debt as agreed upon. Experian's credit scores are calculated using information from your credit report at the moment it's requested by a lender.
Now, it's a myth that there's only one credit score. Web sites or financial advisors claiming that there is only one “real” credit score are misinformed or are being misleading. Some estimate that there are more than a thousand different credit scores used by lenders, although some scores are used more often than others.
However, Experian® ( http://www.experian.com/ ) is one of the biggest. Experian® says they are, “a global leader in providing information, analytical tools and marketing services to organizations and consumers that help manage the risk and reward of commercial and financial decisions.” So, it's the organizations needing the information who are the ones who are helped by what Experian does, not the consumer.
They say that, “Using their comprehensive understanding of individuals, markets and economies, they help organizations find, develop and manage customer relationships to make their businesses more profitable.” This, again, means that the businesses have the upper-hand here.
However, credit scores aren't part of your credit report. Credit scoring is a separate process used by lenders to analyze the information in your credit report at the moment it's requested. Some credit scores are calculated by the credit bureau as the report is sent to the lender. These are commonly called credit bureau scores. Other types of credit scores may be calculated after the lender receives your credit report or may be calculated by a third party as a service to the lender.
So, a credit score helps lending agencies determine whether you are a good credit risk, a poor credit risk, or somewhere in between.
Experian is a global leader in consumer and business credit reporting and marketing services and a constituent of the United Kingdom's FTSE 100 index, with revenues in excess of
US$4 billion. They support clients in more than 65 countries and employ more than 15,500 people in 38 countries.
However, there's always the question of how to interpret a credit score. An Experian credit score ranges from 500 to 850. To be considered to have a good Experian credit score, its best that your number be above 660.
Below is a way of interpreting your credit score. Given the current credit score stats, how does this relate to your own personal score? Generally, if your score is higher than 660, you will be considered a good credit risk. If your score is below 620, then you might have a tougher time getting a loan. The following ratings explain the impact of the different score ranges:
720-850 - Excellent - This represents the best score range and best financing terms.
700-719 - Very Good - Qualifies a person for favorable financing.
675-699 - Average - A score in this range will usually qualify for most loans.
620-674 - Sub-prime - May still qualify, but will pay higher interest.
560-619 - Risky - Will have trouble obtaining a loan.
500-559 - Very Risky - Need to work on improving your rating.
Experian says that they, ". promote greater financial health and opportunity among consumers by enabling them to understand, manage and protect their personal information, helping them control financial aspects of key life events, and make the most advantageous financial and purchasing decisions."
However, what they really mean is… they have you where they want you and there's little you can do about it. So, keep your score high and you'll be able to get good loans for mortgages and automobiles. If the number drops, you've got problems. Just as with the FICO score, the Experian score will be one of the three which will be used when agencies determine what your overall score will be; and agencies can combine information from the three major Credit Score bureaus, and then come up with their own assessment of your Credit worthiness.