How Does Experian Boost Work: All You Need To Know
The tried and true way of improving a bad credit score takes a long time: pay your bills on time, keep credit card balances low, keep an extra card in reserve, and regularly review your credit report so you can dispute inaccuracies.
In the meantime, you must be content with unfavorable interest rates and limited loan options. Many have wished for a way to immediately improve their credit score, even by only a few extra points. Thanks to Experian, there’s a way to make that happen.
Known as one of the finance industry’s big three credit bureaus, Experian has launched a free service called Experian Boost that can raise your FICO score overnight.
Boost offers quick credit score improvement by adding positive payment history and good financial habits to your credit file. This free credit boost is especially valuable for young people who haven’t yet established credit history and those with lackluster credit scores.
According to Experian, the average user of Experian Boost can expect to see a rise of 13 points in their FICO Score 8. This increase could be enough to tilt the scale from poor to fair credit for some consumers and provide long-term benefits and savings in the form of favorable interest rates on new loans.
What Experian Boost Is
Experian is one of the three large credit reporting agencies that record payment information from businesses and individuals. It provides numeric evaluations of your creditworthiness to banks and other lenders.
This information allows lenders to make more accurate assessments before approving a loan or credit.
Experian Boost is a free service that helps users improve their FICO scores by analyzing payment history and adding information about on-time payments of utilities, phone, and streaming services.
Your credit file is sure to include information about missed and late payments, but most companies don’t bother to report on-time monthly payments. Adding them to your account can make a big difference.
Approximately 90% of top lenders use the FICO Score data, and this improvement can have a positive effect immediately, whether you are applying for a credit card, mortgage, or home equity line of credit.
What Experian Boost Does
Utility companies typically don’t report to credit bureaus; therefore, they aren’t usually included in credit reports. This means paying on time, or missing utility payments won’t impact your credit score.
Once activated, Experian Boost scans your bank records and finds paid bills that qualify for on-time payments. Eligible monthly bills include:
- Electricity
- Gas
- Water
- Phone (both mobile and landline)
- Internet
- Cable (or satellite)
- Trash
- Streaming services (Netflix, Disney+, HBO, Hulu, Starz)
Even if you haven’t always paid them promptly, Experian Boost reviews and documents only your on-time payments, this selectiveness distinguishes it from how credit scores usually work.
Missed payments always result in a lowered credit score and are faithfully recorded on your credit history. Experian Boost tracks only your positive payment history.
To register for this service, connect your bank account (or accounts) with Experian Boost.
Make sure you register with the account you have used for paying bills. After that, you will have an opportunity to review and verify your positive payment history before Experian adds it to your file. Results are shared with you immediately.
This program is one feature of the company’s CreditWorks Basic plan. The free plan gives you access to your FICO score and your Experian credit file.
Your FICO score is determined by your payment history, amounts owed, credit mix, length of credit history, and new credit. With this service, you will potentially see an increase in payment history and the length of your credit history.
Since these two categories are responsible for 35% and 15% of your FICO score, Experian Boost will be able to improve your score immediately in many cases.
Of course, the bank’s records of timely bill-paying are just a part of your payment history, and other elements also influence your score.
Does Experian Boost Actually Help?
Experian Boost is a relatively new service that launched in early 2019. More than 14 million Americans have signed up for it since. Experian regularly updates the number of points boosted by using its service.
Eligible on-time payments are taken into account for your credit score. It’s just a matter of finding them in your bank account’s payment history.
According to the company's review of user data, the service is most useful for people with poor and fair credit ratings. About 87% of users with very poor ratings and 63% of those with fair ratings experienced an increase.
This service is not the same as credit repair because it doesn’t remove derogatory entries from your credit history. Instead, it improves your score by documenting positive payment habits.
Premium Plan and Mobile App
Experian Boost is a free service available through the credit bureau Experian. More precisely, with Experian’s CreditWorks Basic plan. A Premium plan offers additional benefits.
These include reports from all three major credit reporting agencies (Experian, Equifax, and TransUnion), a CreditLock function, a credit monitoring provider, and more.
Installing the Experian Boost app on your Android or iOS device will give you access to these features. The app also includes options like getting a free Experian credit report every 30 days, getting alerts when new information is posted to your credit file, online dispute services, and helpful summaries.
UltraFICO vs. Experian Boost
The UltraFICO Score was launched in 2019 as a partnership between Fair Isaac Corp., Experian, and Finicity. It is a useful tool for consumers who lack a lengthy credit history.
Like Experian Boost, it requires access to your bank account. It seeks information on your savings habits, how often you sustain overdraft charges, how long you’ve had the account, and how much you use it.
One more important difference: Experian Boost credit score changes are immediate. With UltraFICO, you must first apply for a loan and then agree with the lender that you will share your payment history to generate data for UltraFICO.
Only after you agree will you see an improvement in your FICO score, and only from the new credit account. Of course, you can opt out whenever you wish.
Will Experian Boost Benefit You?
Experian Boost is a service used by an ever-increasing number of consumers in the US, and it still has to live up to its mainstream potential. But we can freely say that it has already helped many Americans prove their creditworthiness.
To see if it would benefit you, first make sure that you are eligible for it. You must meet four conditions:
- You pay your bills with a savings or checking account.
- You have paid your bills on time for at least three months.
- Your payments are made directly to utility providers.
- You have a credit file. If you have at least one credit card or active loan, you have one.
Since you can always opt out of the service and choose to update payment history information yourself, there is no need to worry about Experian reducing your credit score.
However, note that this service doesn’t deliver the same results for all users. Experian says it is most beneficial for those with the poorest credit history. Whether or not it will help you and how much it will help depends on your credit history.
Don’t expect to see soaring credit scores after using Experian Boost. Remember, there are other elements factored into your credit history, and these influence your score as well.
FAQ
Is Experian Boost legit?
Experian Boost is a service used by more than 14 million Americans so far. It is a legitimate way to improve your credit score by adding information that isn't usually on credit reports. This is in contrast to "piggybacking" credit and other credit schemes that lenders consider to be fraudulent.
The fact that your utility and phone bills are paid on time shows that you take care of your money.
You can be sure that Experian Boost will never harm your credit score. The information it stores comes from your bank records of making on-time payments to utility companies and other services.
Is Experian Boost really free?
Experian Boost is free for anyone with a CreditWorks Basic Plan. There is no trial period; you just need to sign up for a free membership.
This service can positively influence your credit score and save you money on interest rates, which is especially true if you are on the brink of moving your credit rating to the next tier.
Although you can use Experian Boost completely free of charge, you do have the option of choosing a paid premium plan. It comes with extra features such as additional FICO scores, a FICO score simulator, alerts when agencies receive credit inquiries, and multiple options that protect you from identity theft.
For years, the clients I worked for were banks. That gave me an insider’s view of how banks and other institutions create financial products and services. Then I entered the world of journalism. Fortunly is the result of our fantastic team’s hard work. I use the knowledge I acquired as a bank copywriter to create valuable content that will help you make the best possible financial decisions.
