Takeaways
- Experian is a publicly traded credit reporting and data analytics company.
- Lenders rely on the big three credit bureaus: Experian, TransUnion, and Equifax.
- Experian creates unique credit reports using your credit habits and activity.
- Experian’s credit reports are used to make both the FICO and VantageScore.
- Lenders analyze your credit report and score if you are applying for a credit card, personal loan, mortgage, or auto loan.
Experian is one of the three major credit bureaus in the United States. Experian plays a vital role in how lenders, landlords, and potential employers assess your creditworthiness and financial reliability. Knowing what Experian does and how it impacts your credit score via its credit report is a critical part of understanding your personal finances. Here, we take a deep dive into what you need to know about Experian.
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How Experian Works
Experian is a publicly traded multinational company specializing in data analytics and credit reporting. The company has clients in over 100 countries.[1] Alongside Equifax and TransUnion, it forms the “big three” credit bureaus in the United States. Its primary role is to collect, analyze, and distribute information about consumer credit behavior.
Experian looks at a trove of consumer debt and credit-related data to make an assessment of your overall creditworthiness. The company analyzes your:
- Credit card activity
- Loan balances and payments
- Public records (like bankruptcies)
- Inquiries from lenders
Experian compiles evolving data sets into a credit report, which lenders use to make decisions about issuing loans, setting interest rates, and offering credit terms.
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Experian Credit Score
One of the most well-known products from Experian is the Experian credit score, which is based on the FICO credit scoring model. Your FICO scores range from 300 to 850. Here is the general breakdown of how those scores are used to categorize your creditworthiness:
| Credit Score | Ranking |
|---|---|
| 800–850 | Exceptional |
| 740–799 | Very Good |
| 670–739 | Good |
| 580–669 | Fair |
| 300–579 | Poor |
In 2024, the average FICO credit score in the United States was 715.[2] Credit scores can range dramatically, based on how well you manage credit and what is reported to the credit bureaus. Not all lenders report everything to each credit bureau, so your credit score can vary depending on which credit bureau you look at.
Experian and FICO look at a variety of factors that weigh in on forming your credit report and score. However, depending on what credit scoring model is being used, the weight of these factors in determining your score fluctuates. Here are the variables affecting your creditworthiness:
- Payment history: Whether you pay your bills on time is a critical indicator of credit health. (Read more about your Outstanding Credit Balances).
- Credit Utilization: This metric indicates the percentage of your available credit that you are using. (Read about How to Lower Your Credit Utilization).
- Length of Credit History: The age of your credit accounts. Keeping open old accounts can improve your credit age. (Read more about your Credit Age).
- New Credit Inquiries: New credit inquiries refer to the frequency of your new credit applications. Only apply to credit accounts you need. (Read more about how a Hard Credit Inquiry Works).
- Credit Mix: A balance of different types of credit lets the credit bureaus know you are capable of handling different types of loans. (e.g., credit cards, auto loans, mortgages).
Experian provides free access to your credit score through its website and app, as well as optional premium services that include identity theft protection.
Experian Credit Rating
Credit rating and credit score are often used interchangeably; however, these two grading systems are distinct.
- Credit scores are assigned to individuals to indicate their creditworthiness and are expressed as a three-digit number. The FICO and VantageScore credit scores are the most widely used.
- Credit ratings are given to businesses and governments that are seeking to borrow money. These scores are conveyed using a letter grade system. Standard and Poor’s and Moody’s issue credit ratings to businesses, which strive to achieve a triple-A rating
Read Also: 7 Steps to Get Your Free Credit Report
What Your Experian Credit Report Includes
An Experian credit report is a comprehensive document that gives a snapshot of your financial history. Your credit report typically includes:
- Personal Information - Your name, addresses (past and present), date of birth, and Social Security number.
- Credit Accounts - A list of your credit cards, loans, personal lines of credit, and their status (open, closed, delinquent).
- Account History - Details about your payment behavior, credit limits, balances, and how long each account has been open.
- Public Records - Legal events, such as bankruptcies or civil judgments.
- Credit Inquiries - A record of who has pulled your credit report (both soft and hard inquiries).
Reviewing your credit report regularly is a good practice to catch errors, spot potential fraud, and track your financial progress.
>> Are you fully protected? Learn about the 9 Ways to Protect Yourself from Credit Card Hacks
Is Experian the Best Credit Score?
The term “best” depends on what you are trying to accomplish. Each credit bureau compiles its score and reports a little differently, which is why if you look at reports from each bureau, your score may vary. Experian offers some distinct advantages:
Pros of Experian:
- Free credit monitoring - Unlike other bureaus, Experian provides ongoing monitoring for free through its website and app.
- FICO-based scoring - Experian partners with FICO, the scoring model used by most lenders.
- Credit Boost - Experian offers a unique feature called Experian Boost, which allows users to add utility, phone, and streaming service payments to their credit file, potentially raising their score instantly.[3]
>> Master the basics of credit. Learn more about The 5 C’s of Credit
Cons of Experian:
- Only one piece of the puzzle - Lenders may also check your Equifax or TransUnion reports, and they do not always match. Reviewing all three gives you a more complete picture of your finances.
- Paid services for full features - While you can access a lot for free, more in-depth tools are only available with a paid subscription.
- Data discrepancies - Some users report that their Experian report lacks certain accounts that appear on their other reports, which can affect score accuracy.
Smart Summary
Experian is one of the three main credit bureaus and a major player in the credit and financial data industry. It helps lenders assess risk, and it enables consumers to stay informed about their credit scores through tools like free score access and Experian Boost. Experian is a reliable and one of the most widely used credit bureaus, but it should not be your sole source of credit information. It is a smart money move to get your free credit report from all three bureaus for a complete financial picture.
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(1) Experian. About Experian. Last Accessed June 10, 2025.
(2) Experian. What Is the Average Credit Score in the US? Last Accessed June 10, 2025.
(3) Experian. Instantly raise your credit scores for free. Last Accessed June 10, 2025.
