What Is an Experian Plus Score?

When you apply for a loan, credit card or other form of credit, the lender invariably "runs your credit." What the lender finds out helps determine whether to approve your application and, if approved, what terms, such as interest rate, will apply to your account. The Experian Plus Score is one of several credit scores that lenders can use to aid their decision.

Types

Largely because there are so many different types of them, credit scores trigger great confusion among consumers. The most widely used score, according to Smart Money magazine, is the FICO score, devised by the Fair Issac Corp. Your FICO score is a measure of your creditworthiness, based on the data contained in your TransUnion and Equifax credit reports. The Experian Plus Score, used by some lenders, is developed by Experian, the third major credit bureau. Experian, along with TransUnion and Equifax, developed the Vantage Score--which, reports Kimberly Lankford, an editor at Kiplinger's Personal Finance, aims to compete with the FICO score.

Function

While some lenders, though it is unclear exactly how many, use the Experian Plus Score to make credit decisions, Experian positions its score as a way to educate and empower consumers. At its website, Experian notes that the company developed the Plus Score to help individuals better understand their credit and how it impacts them. Experians contend that it is "user-friendly" and "consumer-focused."

The Score

Experian says the formula it uses to come up with its Plus Score is based on information from a consumer's credit report, "using a similar formula to those used by lenders." Experian says the score ranges from 330 to 830. A higher score is associated with a lower credit risk and vice versa.

National Score Index

Experian publishes data it calls the "National Score Index," based on its Plus Score. At its website, the credit bureau allows users to compare Plus Scores at several levels of analysis. Input your ZIP code to see how Experian Plus Scores and other credit statistics compiled by Experian compare between your area, state, region and the nation. For instance, the average Experian Plus Score in Chicago's 60611 ZIP code, according to population sample drawn by Experian, is 696. This compares to the Illinois average of 699, the "East North Central Region" average of 698 and the U.S. average of 692.

Expert Insight

Maxine Sweet, who answers credit-related questions at Experian's website, thinks you should not pay too much attention to the number that is your credit score. Rather, Sweet believes you should focus on where you rank in relation to other consumers in terms of credit risk. Analyze the factors that bring your credit score down, she suggests. Reporting agencies usually provide a list of these factors when you buy a credit score--any one of them--online. Adequately address these factors, advises Sweet, and you have the best chance of improving your creditworthiness.