What is Experian’s Credit Boost?

What is Experian’s Credit Boost?

One of the biggest burdens in your financial life is none other than a lower credit score. Poor or sometimes even fair credit scores may make you unqualified for specific types of credit accounts or loans. This may also lead to higher rates of interest. This means that if your credit score is better, you will be qualified for better interest rates and loans.

How will you be able to improve your credit score, then? Experian’s Credit Boost or Experian Boost is the newest service that will be able to help you do exactly just that.

Experian Boost – What is It?

Experian is among the United States’ three primary credit bureaus. These credit bureaus collect data on people as reported by the lenders including mortgage lenders, credit card companies, and banks as well as from public records and collection agencies.

The company issues credit reports as well that contain the history of the consumer’s delinquencies, credit accounts, and items such as bankruptcies. This will also issue consumers a credit score that is calculated with the use of a unique formula. Experian currently has a brand new program named Experian Boost that is meant to help people improve their credit score.

There are already some positive results reported regarding the use of the program. According to the reports of Experian, users of Experian Boost have enjoyed an average 13 points increase in their FICO credit score.

Ever since the launch of Experian Boost, about 60% of its users have noticed credit score improvements. However, you have to remember that results may vary. There are some users who weren’t able to see improvements in their scores or their chances for approvals. In addition, some lenders are not really using Experian credit files while others don’t use the scores affected by Experian Boost.

Experian Boost – How It Works

You will have to create your own Experian Boost account for you to use this free program. Remember that this one is different from your Experian account itself. Upon signing up, you will be requested to create your own profile and provide some personal details to Experian.

After you have finished signing up and you already have your own account, you will have to link the bank accounts you are using for paying off your utility bills to the program if you want these payments to give your score a boost.

Your payment history will then be transmitted by Boost to Experian and the company will then use it for your credit score’s calculation. These payments will show up on your credit report as well just like the rest of the open accounts and credits you have.

One feature of Boost that is particularly compelling is that it only reports your bank account’s positive payment history. That phone bill payment you missed last year won’t get reported. It is what sets it apart from the usual calculations of credit scores.

Showing only positive payments on your reports, Experian Boost will surely be able to work to your advantage when it comes to improving your score.