Experian credit reports explained

Experian is one of the three main CRAs (credit reference agencies) in the UK, each offering free and easy access to your credit score. Maintaining a good credit score is a significant part of applying for credit and lending products, so it’s important to check it regularly and stay on top of things.

If you’re new to monitoring your credit report, read on to learn more about how Experian credit scores work. We’ll cover how often Experian updates, how to download an Experian credit report, as well as the average Experian credit score in the UK.

What is an Experian credit report?

Experian gathers information on your credit history to generate your credit score. Lenders then use this score to determine your creditworthiness. In other words, how reliable you might be at making repayments. Several factors are taken into account when generating your score:

• Your payment history: This includes how well you’ve handled debt in the past, such as whether repayments have been made on time or if you’ve ever been issued a CCJ (County Court Judgment).

• Existing credit: Experian also considers how much credit you currently owe and how many of your accounts have outstanding balances. Credit utilisation may also be considered, which is how much of the total credit limit you’re using.

• Recent activity: If you’ve recently applied for credit, a hard enquiry may show up on your report, temporarily lowering your score.

• Credit history length: A long and varied history of responsible credit use can help boost your score, whereas a lack of credit history may hinder it.

How to download your Experian credit report

If you’re wondering how to download your Experian credit report, you can check your score for free on the Experian website. You’re entitled to request a free statutory report online or in the post, which requires details such as your name, date of birth, email, and phone number.

If you need a more in-depth look, you can register for a trial of Experian’s CreditExpert service for full report access. This is free for the trial period, and then £14.99 per month. If you only want to use the free trial, make sure to set a reminder to cancel it before the monthly fee kicks in! Check out our guide on managing subscriptions for more help with this.

How to interpret an Experian credit report

So, now you know how to check your Experian score, the next step is understanding it. Experian assigns credit scores ranging from 0 to 999, with the higher the number, the better your score

• Very poor: 0-560

• Poor: 561-720

• Fair: 721-880

• Good: 881-960

• Excellent: 961-999

Remember, all CRAs use different scoring systems, but the general rule is the higher your score, the more appealing you’ll appear to lenders.

What is the average Experian credit score in the UK?

Credit scores vary from person to person. The average score according to Experian is around 797 - sitting in the ‘fair’ category.

Experian has also mapped out the average credit scores for 391 areas across the country. Using their credit score comparison tool, just select your age and region to see how your score compares to others in your area.

How often does Experian update scores?

Creditors report to credit bureaus according to their own schedule, but Experian will update your credit score every 30 days. So, if you’ve been working hard to boost your score ahead of an important credit application, we’d recommend checking in on your Experian score at least once a month.

How to boost your Experian credit score

Good credit scores can lead to better approval rates and terms, while bad credit scores often yield higher rates and lower limits. As well as lenders, employers and landlords may also check your score to ensure you’re able to effectively manage your money.

The good news is that credit scores aren’t fixed - they shift and change depending on your financial habits. So, if your score is looking less than ideal, here are some ways to help boost it:

1. Identify and dispute any errors

It’s crucial to consistently monitor your report, identifying any inaccuracies or fraudulent activity.

Fraudsters can gain access to your details, using them to take out credit in your name and cause your score to dip. If you notice any suspicious activity, flag it immediately then report it to the government’s fraud department, Action Fraud.

2. Register on the electoral roll

If you haven’t already, registering on the electoral roll at your current UK address can help confirm your identity. This is a quick and easy way to give your score a boost, and you can do so on the GOV.UK website.

3. Make prompt monthly payments

It’s important to pay your accounts on time and in full each month, as this signals that you’re a responsible borrower.

We understand that life can get hectic, so we’d recommend setting up reminders or automatic payments in your banking app to ensure you never miss a repayment. And to make sure there’s always enough money in your account, you’ll also need to establish effective monthly budgeting habits.

4. Keep credit utilisation low

As previously mentioned, your credit utilisation is the percentage of your credit limit that you’re currently using. To improve your Experian credit score, it’s recommended that your utilisation sits at 25% or below. The lower the percentage, the more appealing you’ll look to lenders.

For more in-depth advice, we have a full guide on boosting your credit rating. And remember, the hard work doesn’t end once you’ve raised your score. You’ll need to implement healthy habits in the long term by only borrowing what you can afford and staying on top of payments. Changes won’t happen overnight, but if you’re consistent, you’re likely to see positive results!

Moneyboat are here to help you stay afloat

In need of funds to tide you over but your credit score isn’t yet where you want it to be? Here at Moneyboat, we offer fair and flexible short-term loans, providing customers with cash to cover unexpected expenses that can be paid back in manageable instalments.

We assess applicants on a case-by-case basis, carrying out thorough affordability checks to ensure you’re a good fit. This means you can apply for a Moneyboat short-term loan even if you have a bad credit score.

While convenient, loans aren’t a long-term solution, so you’ll need to work on creating an emergency fund to safeguard you from future surprises. And if you’re looking for additional insights, just head over to the Moneyboat blog for plenty more tips and advice.