Experian Boost is a credit-building tool that allows consumers to enhance their credit scores by incorporating positive payment history from everyday bills. This article will delve into the workings, advantages, limitations, and eligibility criteria of Experian Boost, drawing upon credible sources such as Forbes Advisor, Experian, and Bankrate.
Key Facts
- How Experian Boost Works:
- Experian Boost allows users to include their history of certain on-time household bill payments in their Experian credit file to help build credit.
- Eligible accounts for Experian Boost include phone bills, utility bills, insurance payments, residential rent (if paid online), internet and cable bills, video streaming subscriptions, and trash collection services.
- Users can choose which bills to share and can change their selection at any time.
- Up to two years of payment history for each bill can be added to the Experian credit report.
- Experian Boost only considers on-time payments and ignores late payments, which means late payments cannot hurt your FICO® Score.
- Benefits of Experian Boost:
- Experian Boost can be beneficial for individuals with limited credit experience or fair/poor FICO® Scores.
- Users who see an increase in their FICO® Score after using Experian Boost have reported an average increase of 13 points.
- Limitations of Experian Boost:
- Experian Boost may not be very beneficial for individuals who already have a strong credit history with on-time credit card payments.
- The impact of Experian Boost on credit scores may vary, and there is no guarantee that using Experian Boost will increase approval odds for a specific credit product from a specific lender.
- Experian Boost only affects the Experian credit report and may not impact credit files with other major credit bureaus like Equifax and TransUnion.
How Experian Boost Works
Experian Boost enables users to include their on-time payment records for various household bills in their Experian credit file. Eligible accounts include:
- Phone bills
- Utility bills
- Insurance payments
- Online rent payments
- Internet and cable bills
- Video streaming subscriptions
- Trash collection services
Users can select the bills they wish to share and modify their selections as needed. Up to two years of payment history for each bill can be added to the Experian credit report. Notably, Experian Boost only considers on-time payments, disregarding late payments, which cannot negatively impact FICO® Scores.
Benefits of Experian Boost
Experian Boost can be particularly advantageous for:
- Individuals with limited credit history
- Consumers with fair or poor FICO® Scores
Users who experience an increase in their FICO® Score after using Experian Boost typically see an average increase of 13 points.
Limitations of Experian Boost
While Experian Boost can be beneficial, it has certain limitations:
- It may not be as effective for individuals with a strong credit history who already make on-time credit card payments.
- The impact of Experian Boost on credit scores can vary, and there is no guarantee that it will enhance approval odds for specific credit products from particular lenders.
- Experian Boost only affects the Experian credit report and does not impact credit files with other major credit bureaus such as Equifax and TransUnion.
Conclusion
Experian Boost can be a valuable tool for individuals seeking to improve their credit scores. It provides a convenient way to include positive payment history from everyday bills, potentially resulting in a significant increase in FICO® Scores. However, it is essential to note the limitations of Experian Boost and consider it as one aspect of a comprehensive credit-building strategy.
Sources
- Forbes Advisor: Experian Boost Review
- Experian: What Is Experian Boost and How Does It Work?
- Bankrate: Is Experian Boost Worth It?
FAQs
How does Experian Boost work?
Experian Boost allows users to include their history of on-time household bill payments in their Experian credit file to help build credit.
What types of bills are eligible for Experian Boost?
Eligible accounts include phone bills, utility bills, insurance payments, residential rent (if paid online), internet and cable bills, video streaming subscriptions, and trash collection services.
How much can Experian Boost increase my credit score?
Users who see an increase in their FICO® Score after using Experian Boost have reported an average increase of 13 points.
Is Experian Boost free to use?
Yes, Experian Boost is free to use.
Does Experian Boost affect my credit scores with other credit bureaus?
No, Experian Boost only affects the Experian credit report and may not impact credit files with other major credit bureaus like Equifax and TransUnion.
Is Experian Boost safe to use?
Yes, Experian Boost uses world-class encryption to keep data secure and does not store consumer credentials.
Can I remove bills from Experian Boost after adding them?
Yes, users can choose which bills to share and can change their selection at any time.
Does Experian Boost consider late payments?
No, Experian Boost only considers on-time payments and ignores late payments, which means late payments cannot hurt your FICO® Score.