What Does an Experian Credit Score Mean?

Credit reporting agencies such as Experian gather data from creditors and from public records and use that information to create individual credit reports and calculate a credit score that attempts to paint a picture of an individual consumer's credit worthiness.

Company Information

Including the U.S., Experian compiles consumer reports on people in 15 nations and as of 2011, the firm has files on more than 400 million people. In the U.S., two other firms: Equifax and TransUnion also compile consumer credit reports.

Credit Reports

Your Experian credit report includes information pertaining to all of your currently active credit accounts. The report lists your current loan balances as well as the total amount of credit available to you on your revolving lines of credit. The report lists the number of times you have missed a loan payment by 30, 60, 90 and 120 days. Creditors can also report delinquent accounts, and details of these accounts and events such as car repossessions and foreclosures can stay on your report for up to seven years. A bankruptcy can stay on your report for 10 years. Lenders can deny a loan application on the basis of a low credit score.

Two Scores

Experian rates your credit history by giving you a credit score of between 300 and 850, with high scores being assigned to people with a positive credit history and low scores given to those with bad credit. Experian also compiles Vantage scores, which range from 501 to 990 and are based on a scoring model used by all three credit reporting agencies, while Experian scores are calculated using a scoring model unique to Experian.

Considerations

In order to submit information to Experian, your creditors have to pay to establish Experian accounts. Consequently, some lenders choose not to report your credit information. While most lenders choose to submit consumer reports to all three agencies, some firms make reports to just one, and this in part explains why your Experian score may deviate from your other credit scores. When you apply for a mortgage, your lender checks all three of your credit scores and uses the middle of the three scores to underwrite your loan. Credit card issuers and other lenders usually check just one credit score.