Experian Boost Review: The Pros & Cons of Boost (2022)
Experian Boost, On-time payment history is the most critical factor to consider regarding your credit score, accounting for 35 percent of your total credit score. This is followed by credit utilization, accounting for 30 percent of your total credit score.
By linking their bank account to this product, consumers can add additional on-time payments to their Experian credit report, improving their credit score. Having a long history of on-time payments can help you improve your credit score.
Experian Boost is a simple tool for improving your credit scores, and it doesn’t require any technical knowledge. To use this service, you must first connect with the account you use to make qualifying utility, cellphone, and video streaming service payments.
Following the bank account connection, users can select which positive payment histories from these services they would like to have included in their Experian credit history.
If you are eligible, you may be able to see the results of Experian Boost immediately.
How does it work?
Before using it, you must give the product permission to scan bank account transactions to identify streaming, utility, and cell phone payments. Information about payments may appear on their Experian credit report. It will be used when specific credit scores are calculated based on the information in the report.
According to Experian, Boost only considers positive payment history, so missed payments for streaming services, utilities, or cell phone service will not affect your score. This is in contrast to how we calculate credit scores, in which missed or late payments are recorded in your credit report. It can result in a reduction in your score.
Consumers must first register for a free membership on Experian’s website and permit their online bank accounts to be linked to Boost. Boost then determines which payments are for streaming, utility, and cell phone services. Once a consumer confirms that the information is correct and wishes it to be added to their Experian credit file, an updated FICO score is delivered in real-time.
Is Experian Boost a secure service?
Experian Boost may improve your credit score. Even if it does not assist you, Experian Boost will not hurt your credit score, making it a safe option. Experian Boost examines your banking information rather than your credit history. This means that there will be no credit check. Furthermore, Experian Boost only includes on-time payments, which increases the amount of positive payment history on your credit report.
As a result, that bill you paid three days late last year will not be included in this calculation. It’s important to remember that failing to pay your utility or other bills on time can harm your credit score. However, this would occur regardless of whether you used Experian Boost or not.
If you fall behind on your payments for more than 60 days, your service provider may report your account to the credit bureaus as delinquent. Your FICO® Score relies on your payment history, which accounts for 35% of your total score. As a result, missed payments can harm your credit score. Additionally, negative items on your credit report, such as missed payments, can remain on your credit report for seven years.
What are the requirements to use Experian Boost?
For Experian Boost to work, you must first sign up for an account with Experian. You must provide some basic information and link any bank accounts that you use to pay your utility bills to your account. After scanning those accounts, Experian will contact you to verify the payment histories that you want to be included in your credit file. Below are the requirements:
Having at least one account on your credit reports, such as a credit card or loan
Experian Boost must establish a connection with an existing credit file (which may contain personal information and data reported by lenders) to verify your identity.
You will not be able to establish credit using Experian Boost.
You must include the names of individual utility providers in the transactions.
If your utility payments are combined (for example, water and trash on a single municipal bill), Experian Boost will not recognize them as separate payments. It will also not give you credit for payments made through Venmo to your roommates or for any other payments that are not made directly to a provider.
You must have a payment history of at least three months to be considered.
Experian Boost detects payment patterns that have been in place for three months or longer.
You must pay your bills using a checking or savings account.
Experian Boost can only capture transactions from demand deposit accounts. They will not count utilities paid with a credit card toward a potential credit score improvement.
Is Experian Boost a legal business?
You might be wondering whether or not all of this is legal. Is it reasonable for Experian to expect you to grant them access to your bank records so that they can see your payment history? Boost is entirely legal, so don’t worry about that. The service is completely optional.
You are under no obligation to participate. The fact that they have access to your records is fundamental to Experian’s business model.
An example of this would be a consumer reporting agency. The fact that a credit card company or lender has shared information about you with Experian indicates that you have permitted them to do so (probably in the fine print when applying for a new credit card or loan, which few of us ever read).
What options do I have for improving my credit without using Experian Boost?
The most effective way to raise your credit scores is to manage your credit responsibly.
Pay off all of your debts on time and keep your credit card balances low by following these guidelines.
Using a credit card is a straightforward method of establishing and building credit. Payment for a small monthly bill, such as a streaming service, can be made with a credit card. Next, arrange for automatic payments through your bank to ensure that your credit card is paid in full and on time every month. This will help to establish a positive payment history for you.
Choose a credit card that does not charge an annual fee. If you cannot qualify for an unsecured credit card, you may want to consider a secured credit card.