Experian is one of the world’s preeminent credit data administrations organizations offering an extensive variety of business apparatuses to their customers based all over the globe. Generally known to be among the planet’s most imaginative organizations as per Forbes magazine, the organization is authorized by the Reserve Bank of India and helps customers by giving an abundance of systematic and additionally information apparatuses, which enable them to deal with their organizations in a more proficient and successful way. Experian is additionally the primary credit data organization to be authorized by Credit Information Companies (Regulation) Act 2005 (CICRA 2005) and presently work two firms inside India, specifically:
- Experian Credit Information Company of India Private Ltd
- Experian Services India Private Ltd
Experian has tied up with more than 2,900 money-related foundations, tallying open area banks, telecom organizations, small-scale fund establishments and also non-managing an account budgetary organizations. The organization, which is ISO 27000:2013 affirmed, furnishes its clients with acknowledging data according to rules issued by the Credit Information Companies (Regulation) Act of 2005.
Features and Functions of Experian
In addition to business management tools, the firm also assists businesses in the following ways:
- Helps businesses zero in on offers relating to marketing
- Helps clients by managing their credit risk in a more efficient manner
- Helps businesses by automating their decision making
- Effectively helps clients in the prevention and circumvention of instances of fraud
- The firm also helps individuals by protecting them against identity misrepresentation and theft, ascertainment of their credit scores, and drawing up their credit reports.
Services Provided By Experian
Experian offers businesses and individual customers the following services:
Consumer Services
Experian assists its customers by providing them with the following consumer-based services:
- Regularly updating clients on a monthly basis with regards to their credit performances.
- Informing clients about the current status of their credit.
- Assisting clients in making smarter and sound financially related decisions for the future.
- Ensuring that their client’s credit is protected as time goes on.
- Helping clients to understand and analyze their credit reports.
- Ensuring that credit reports obtained by clients do not contain any errors.
- Providing quick and rapid resolutions should any inaccuracies or errors be found in the client’s credit report.
Member Services
Experian also provides special services to clientele who are members of the company. Some of their member related services are as follows:
- Assisting clients to predict and forecast their credit risk.
- Providing clients with effective and efficient management regarding their credit risk.
- Helping clients lower their exposure to bad debts.
- Ensuring that clients are protected against the possibility of fraud.
- Providing assistance to clients with regards to optimization, segmentation, custom scores and much more.
What is a credit report?
Experian makes credit data accessible to their customers by methods for a credit report which is produced through the transformation of existing money related data, for example, advances, individual credit history, credit cards etc. into a set organization. This is known as a FICO rating. Individuals give this money related data, which is utilized to draw up a report that surveys the client’s credit value in light of past budgetary history.
A credit report thus gives a lender an accurate snapshot of the borrower’s detailed financial position, allowing them to make informed decisions regarding the extending of credit to these borrowers.
How is a Credit Report Calculated?
An Experian report is calculated based on ion certain factors and an Experian score is provided, which corresponds to the customer’s financial position.
An Experian score ranges between 300-900 points, with a higher score indicative of a more financially sound position.
This scale helps lenders to assess the risks associated with lending to a particular borrower and also determines if the borrower will be granted credit at all.
An Experian score is divided into certain categories, as under:
Very Low (ranging between 300-500)- this score indicates that the customer has a poor history of financial management, resulting out of bad debts, payment defaults and poor credit utilization patterns. A customer with such a score is a high risk and lenders will be wary of extending credit.
Low (ranging between 500-650)- this score indicates that the customer has a low score, with instances of payment defaults, unsecured loans, etc. A customer with a low credit score is liable to default and presents a risk to the lender.
Good (ranging between 650-750)- this score indicates that the customer has a healthy credit rating and has a balanced credit history. Credit has been repaid and the report demonstrates a history of financially sound decisions. Loans, if any, have been settled within the period provided. Extending credit to such a customer is a low risk for the lender.
Very Good (ranging between 750-850)- this score indicates that the customer has a very good history of financial management and their financial history demonstrates sharp financial acumen regarding the utilization of credit. Extending credit to such a customer is very low risk to the lender as the customer has a proven record of creditworthiness.
Excellent (850)- this score is the highest allotted by Experian and indicates a customer with an almost perfect credit record. All lines of credit extended to a customer with such a score are a very low risk due to their proven financial management.
Additional Services
Experian Indian also provides additional services, as listed below:
Decision Analytics
Experian also provides its clients with decision analytics, which forms an integral part of the services it provides to other businesses and organizations. The company helps companies in the following sectors with decision analytics:
- Telecommunications.
- Automobile.
- Utilities.
- Insurance.
- Financial Services.
Customer Lifecycle Management
Experian provides its clients with in-depth, tailor-made solutions that enable clients to make decisions that will increase their overall performance and lead to sustainable organization-wide growth.
Credit Risk Management
Through effective credit risk management techniques, Experian helps its clients to improve their chances of mitigating risks associated with bad debts and loan loss reserves through its analytics that offer insight and lead to better decision making.
Debt Management
Experian provides its clients with the best-in-class automation software that provides them with effective tools to manage their debt portfolios and provides them with the necessary tools to take informed decisions based on current market environments, allowing for higher efficiency through collections management.
Fraud Management
Experian’s range of products enables clients to manage fraud at all levels through effective screening at all levels that provide continued access through a single platform to ensure fraud is detected instantly.
Experian is one of 4 credit rating companies that operate in India, the other being CIBIL, Highmark and Equifax. All 4 agencies provide similar information, though CIBIL is the most prominent. However, as per an RBI directive, the credit information provided by all four carry equal merit.
