Product Overview: Experian Boost
What is Experian Boost?
Experian Boost is a free credit-building tool offered by Experian that allows consumers to improve their FICO credit scores by incorporating positive payment history from everyday bills into their credit reports. This innovative feature addresses a common gap in traditional credit scoring by recognizing payments that are not typically included in credit evaluations.
Key Features and Functionality
Eligible Payments
Experian Boost considers a wide range of recurring household payments, including:
- Utility bills (gas, water, electricity, solar)
- Phone bills (mobile and landline)
- Internet, cable, and satellite services
- Video streaming subscriptions (e.g., Netflix, Disney , Hulu)
- Insurance payments (excluding health insurance)
- Residential rent (if paid online)
- Trash collection services
How it Works
To use Experian Boost, users need to:
- Sign up for an Experian account, which is free.
- Connect their bank accounts to the Experian system. This allows Experian to scan banking transactions and identify qualifying bills.
- Verify and select the positive payment history they want to add to their Experian credit file.
- Once verified, Experian will update the user’s credit report and FICO score instantly.
Data Security
Experian Boost uses world-class encryption to ensure the security of user data. The system does not store consumer credentials, and users can opt out at any time if they choose to stop sharing their payment information.
Immediate Impact
The process of enrolling and seeing the impact on your FICO score is quick, typically taking less than five minutes. Users whose scores improve see an average FICO score increase of 13 points, which can be significant enough to move them into a higher credit score category.
Benefits
- Free Service: Experian Boost is free to use, with no additional costs for the basic Experian account required.
- Instant Results: The FICO score increase is immediate, reflecting the new payment history in real-time.
- Comprehensive Coverage: Up to 24 months of payment history can be added to the user’s credit profile.
- Targeted Help: It is particularly beneficial for consumers with poor or thin credit files, as it helps build or rebuild credit and can make previously “credit invisible” individuals scoreable.
Who is it For?
Experian Boost is designed for consumers who are working to build or rebuild their credit. It is especially valuable for:
- Those with poor FICO scores, who have seen significant improvements averaging 22 points.
- Individuals with thin credit files (four or fewer credit accounts), where 87% have seen an increase in their FICO score and 16% have moved into a higher credit tier.
In summary, Experian Boost is a powerful and free tool that helps consumers enhance their credit scores by leveraging their on-time payments for everyday bills, making it an invaluable resource for those seeking to improve their credit health.