Experian Boost

- Jan 20, 2019 credit, Credit Scores2 comments

Experian recently announced a new program that will help consumers who don’t have any credit scores. The program is called Experian Boost. Until now utility bills and phone bills payments were not counted into the scoring models. This was affecting a lot of consumers who do not have any credit cards or other trade lines. With the new Experian boost that will change.

How Does Experian Boost Work?

Consumers will be able to voluntarily provide Experian with access to their bank accounts. Experian will scan the bank accounts for information regarding on-time payments for cell phone and utility bills. (I don’t know how they will know if the bill was paid on time or if it was a late payment.) The information will be added to your Experian credit report. Experian claims that only positive information will be added, meaning only the on-time payments will be added and not any late payments.

Experian claims that the consumer will be able to choose which positive information should be added or be removed at any time.

Once the information is added, then scoring models will be able to use this information to calculate a credit score. The only scoring models, as of now, which will include such information are the Fico 08, Fico 09, Vantage 03, and Vantage 04 scoring models.

Will It Really Help?

Experian is only one of the three credit bureaus. Experian boost will only provide a credit score for loans using the Experian credit report only. Also, it will only be used when the Fico 08 credit scoring model is used. There are many credit card issuers which only pull an Experian credit report and use the Fico 08 scoring model. (You can filter results on the CCFinder to only show you the cards that pull Experian). But unfortunately, when it comes to mortgage applications or any other significant loan, most of the time, credit issuers will want to pull all three credit reports. Therefore, Experian Boost will not help much in these situations.

Conclusion

Experian Boost may be beneficial for some. I still would recommend a consumer try his best by rather trying to build traditional credit. You can read an easy 4 step guide to build credit here.


Rather watch a video?


That’s it for now, Have a great day!

Was this article helpful?

Sam Sam has nearly a decade's worth of experience educating his many readers on everything credit. Sam spends his days checking out credit cards for a full report, from the minute benefit details to the shebang of welcome bonuses. Plus studying the ins and outs of building proper credit. It’s his favorite pastime and he loves sharing it with others.

Leave A Comments

This site uses Akismet to reduce spam. Learn how your comment data is processed.

2 Comments

  1. It has one bad thing that it comes up that you have an expanse every month and if you want to take a mortgage or lease it will used as a monthly charge and will effect if you don’t have enough income

    • That is a great point! Thanks Jacob. But, please note with Experian Boost you can choose which items you want to add and which items you do not want to add

Recent Posts

Follow us

Click here to subscribe to
our WhatsApp channel

Todays
best offers

Chase Ink Business Preferred

Earn 100,000 points after $15,000 spent within the first 3 months.

more info

British Airways Visa Signature Card

Earn a total of 100,000 points after $20,000 spent within the first year.

more info

Chase Sapphire Preferred

Earn 80,000 points after $4,000 spent within the first 3 months.

more info

Iberia Visa Signature Card

Earn a total of 100,000 points after $20,000 spent within the first year.

more info

You May Also Like

The 5 Most Important Factors In A FICO Score

The 5 Most Important Factors In A FICO Score

The FICO score model is the mostly widely used scoring model. As per Fico, as much as 90% of lending decisions that are done using a scoring model, use the Fico scoring model. In this post we will discuss the 5 most important factors that Fico would look at in order...

read more
The Best Websites to Monitor Your Credit Report For Free

The Best Websites to Monitor Your Credit Report For Free

In today’s day and age, we hear daily in the news of new hacks and new identity theft stories. By now everyone knows how important it is to properly monitor your credit report to make sure that no thieves are able to open any credit cards or loans on your name. There...

read more
Why Are My Credit Scores Different?

Why Are My Credit Scores Different?

When people check their credit score, should it be by Credit Karma or on their Discover statement, etc., they look at the three-digit number. They take it as a fact that this is their credit score. Period. The same way they know their age and weight, they feel that...

read more
Credit Scores And Mortgages: Here Is What You Need To Know

Credit Scores And Mortgages: Here Is What You Need To Know

Shopping for a mortgage but got bad credit? You are not alone! I invited a great mortgage expert Chaim Tarkieltaub from Mint Capital to explain the differences between the different mortgage products available for consumers at all stages of credit. Let's explore the...

read more
Intoducing FICO® Resilience Index

Intoducing FICO® Resilience Index

What is FICO® Resilience Index? Fico now has another tool to calculate how consumers use credit. The FICO® Resilience Index was created specifically for hard financial times. Lenders will be able to decide if a consumer can handle his finances during hard times. They...

read more
Getting Approved For A First Credit Card

Getting Approved For A First Credit Card

Credit is not something you are automatically born with. It is something you need to learn how to build on your own. The best way to build your credit is by getting approved for credit cards. But, hey! How do you get approved for credit cards without credit? Stay...

read more
Credit Utilization

Credit Utilization

One of the biggest factors that credit models look at when calculating a credit score is credit utilization. Credit utilization means how much of your credit line you utilize. The less money you spend on your credit cards, the less money you have in debt, compared to...

read more
Piggybacking Credit- Everything You Need to Know

Piggybacking Credit- Everything You Need to Know

What Is Piggybacking Credit? Piggybacking credit is having a third party, a creditworthy individual, add you to their credit card as an authorized user. This will allow you to receive the credit benefits from that account, helping you improve your own credit score...

read more
Does Closing A Credit Card Hurt Your Credit?

Does Closing A Credit Card Hurt Your Credit?

  People are always asking me: Does closing a credit card hurt your credit? Closing a credit card does not hurt your credit directly. But closing a credit card may hurt your credit indirectly. Confused? Let’s explain…   What Is Credit?   First, let’s go...

read more

Download link sent
succesfully

Got it *please check your promotional inbox

Error sending download link

Try Again