Credit Cards , Customer Service

How Does Experian Boost Work

By David Krug David Krug is the CEO & President of Bankovia. He's a lifelong expat who has lived in the Philippines, Mexico, Thailand, and Colombia. When he's not reading about cryptocurrencies, he's researching the latest personal finance software. 4 minute read

Millions of customers around the country are using Experian BoostTM to enhance their FICO® Scores in real-time. Raising your credit score may be a frustrating and thrilling experience all at the same time. Seeing a huge decline in your score is quite painful, but seeing your score rise is extremely rewarding. When it comes to so many facets of your life, it’s almost as if a bad credit score has such a tremendous impact.

It’s a little bit like that. When it comes to establishing your creditworthiness, your credit score is a critical aspect. It affects everything from your ability to get a loan to your ability to rent an apartment. In addition, even though you may be paying all of your monthly payments on time, not all of your good actions are shown on your credit report. Even if you’ve never missed a payment on your utility, phone, or cable bills, they don’t play a role in establishing your credit score.

However, there is now a technique to take into account this responsible conduct. Experian BoostTM is a new tool that can help millions of people get the credit they deserve. Results may differ. Scores or approval chances may not increase for some. Experian credit files aren’t used by all lenders, and not all lenders utilize Experian Boost scores.

What is Experian Boost?

Using Experian Boost, your phone and utility bills may now be included in your credit report for the first time, for no cost. More than a million people have signed up for Experian’s new identity verification service since it was launched in March 2019.

Traditional methods of calculating credit scores included data from your credit report, which might contain information from several types of loans, including credit cards, student loans, and auto loans. However, consumers throughout the country have ultimately achieved success following increasing attempts to reform the method used to generate these rankings.

The Credit Access and Inclusion Act of 2017 were enacted by the United States House of Representatives in June of this year. It aims to increase access to credit and improve credit choices for persons with little or no credit history or low credit scores. Allows the reporting of non-traditional payments, such as rent, mobile phone, and utility, to the main credit agencies under the bill (Equifax, Experian, and TransUnion).

Experian was quick to respond to this new regulation and assist customers in obtaining credit for such payments. Even before the official introduction of Experian Boost, CEO Brian Cassin noted, “This industry-first online platform will provide consumers the option to quickly enhance their credit scores.”.

Improve your credit ratings with the aid of Experian Boost!

Fast and simple, Experian Boost lets you see your credit score rise in real-time. A bank account scan identifies phone and utility bills that you’ve paid on a regular basis. In a matter of minutes, you will be able to add positive information to your credit report if qualifying payments have been made.

To improve your credit score, Experian® looks for three consecutive positive payments, so learn how to budget and pay your obligations on time. Your credit report will only contain good information, so any bad marks, such as missing or late payments, will not be taken into account.

There have been over 10 million FICO® Score increases across the United States since Experian Boost was launched. As a result, the final outcome may be different for everyone. There are some people who will have 13 or more points added to their scores, while others may only get a few or none at all.

Important things to know about Experian Boost

To utilize Experian Boost, you must first sign up for the program. One of the advantages of employing this service is that it only provides good payment history for the linked accounts.
If you don’t want Experian Boost to link to any of your accounts, you’re free to do so at any time. To avoid losing any points, remember to unlink any accounts that were previously linked to your account.

Is it safe to use Experian Boost?

To access your bank account payment history, Experian is granted read-only access, but it does not record any of your bank account details. A lot of individuals give their budget-tracking tools or apps the same kind of credence.

Who can benefit the most from Experian Boost

When it comes to improving FICO® scores, Experian Boost has shown the most promise for people with low scores (between 300 and 579). When it comes to improving your FICO score, 86% of customers of Boost who have a low score saw an average increase of more than 22 points.

This has been the case for a large number of others as well. It has been reported by Experian that 64% of consumers who utilized Experian Boost raised their FICO® Score from a bad tier to a moderate tier, and 26% from moderate to excellent. If you’re attempting to boost your credit score but feel like you’re not making any headway, a Boost could be just what you need. FICO® Scores can be improved using Experian Boost.

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