When you’re looking to get a mortgage or loan for a car or other large purchase, your credit score plays a big role in what you are approved for and what you’re not. Paying bills on time, being careful about the types of accounts you open, and how frequently, can help boost your credit score. But, all of that can take time to show up on your credit report…time that you may not have if you need a loan quickly.
That’s where Experian Boost may be able to help. Experian Boost is a program aimed at helping people increase their credit scores right away. Let’s take a close look at the program so you can determine if it’s right for you.
What is Experian Boost?
Experian Boost is a unique program developed by the credit reporting company Experian. It allows people to boost their FICO score by giving them credit for paying utility, telecom, and some streaming service payments on time.
Chances are you’ve heard of Experian before because it produces credit reports that lenders look at to determine a borrower’s credit history. But, you may not have heard of Experian Boost before because it just came out in 2019.
How Does Experian Boost Work?
Experian Boost focuses on utility and telecom payments because they are not usually factored into your credit score. The program looks at your bank records to find when you made on-time utility payments. It also includes any on-time Netflix payments.
When these records are added to your credit file, your payment history starts to build up. The more on-time payments you have, the more it will increase your credit score.
One of the good things about Experian Boost is that it only considers on-time payments. Any negative payments will not be included. When you sign up for Experian Boost, you can add more accounts to your credit file, especially if you have a lengthy credit history. This can also help to boost your credit score if you have more active accounts with on-time payments.