Having a low credit score can have a significant impact on your finances. Even if you have fair credit, you may not have the opportunity to be considered for specific types of credit accounts or loans.
Poor credit can also mean you will be subject to higher rates. The better credit score you have, the better interest rates and loans you will have access to.
But how can you increase your credit score easily? Experian has a new service to help you with that. So, read on to learn all about it in our Experian Boost Review.
Table of Contents:
What Is Experian Boost?
Most people know that Experian is one of three US credit bureaus. These bureaus provide information to lenders based on the data they have.
For example, Experian may provide bank information on all your credit accounts. This would include late payments, negative remarks from other lenders, and bankruptcies. Based on this and other information, a credit score is then determined by using a unique formula.
Now, Experian is offering its new program, which it refers to as Experian Boost. This program is specifically designed to aid people in credit repair by helping “boost” their credit scores.
Before you wonder whether or not this is a scam, Experian has already shown that users on their platform have experienced an increase of 13 points on average. Remember, however, that not everyone will have the same results. Your results may vary from the average.
Anyone who has a desire to raise their credit score can use Experian Boost. Keep in mind that the tactics employed by the program are designed to help people who have a limited amount of credit history or poor credit scores.
Usually, your credit score is derived from sources that can be difficult to come by. This includes a student loan, a credit card, or a home mortgage. Experian Boost steps in and uses your phone bill or your utility to aid in raising your credit score.
If you have made phone payments for a few years but have never had a credit card or student loan, then Experian Boost might be the program you need to help you give your credit score a nudge in the right direction.
What Does Experian Boost Offer?
If you apply for a line of credit or a loan, your lender will use your scores from either a single credit bureau or all three to determine whether or not you qualify. However, every bureau provides a different version of your score.
Keep in mind that if you decide to pursue the Experian Boost program, it only impacts your VantageScore 3 and 4 scores, your FICO 8 and 9 scores, and your Experian Credit score.
Experian says that their Boost program is ideal for someone who has a credit score of 580-670 and less than five total trade or credit lines. While this may appear to leave many people out, most can use Experian Boost to improve their scores unless they are in the upper echelon of credit scores.
Here’s an idea of who would be ideal for using the Experian Boost program:
- Adults with little to no credit history: Experian Boost can have a significant impact on those who don’t quite have the track record that banks and other lenders want to see.
- Consumers with incredible financial restraint: If you have excellent payment history, but not with the type of credit line or account that you need, Experian Boost can help you with that.
- Customers with low or poor credit scores: If your credit score needs a jump start, then use Experian Boost before you apply for a loan or mortgage so you can get a better rate.
Experian hopes to see nearly two-thirds of its customers using Boost to improve their scores. But why would you want to worry about a better credit score? Here’s an example of how much of an impact it can have on your finances:
If you have low or poor credit, then you can expect to pay almost a quarter of a million dollars more throughout your life than someone who has fair or excellent credit.
Doesn’t that make Experian Boost a little more appealing? The goal of this program is to move customers from getting denied, to getting approved for the loan or mortgage they want.
How Much Does Experian Boost Cost?
The great thing about Experian Boost is that it’s free for anyone to use. All you have to do is create an account, and you’re ready to start improving your credit.
Is Experian Boost Safe?
If you’re worried about security with Experian Boost, the program protects your information with a 256-bit encrypted SSL. However, always do everything you can to protect your financial data.
This is especially critical as major credit bureaus are seeing data breaches occur that have an impact on hundreds of millions of people and their personal financial information.
When you sign up for Experian Boost, you’re giving a third-party access to your banking information. So, do everything you can to ensure your information is protected.
Should You Use Experian Boost?
Now we’re down to the million-dollar question. Should you use Experian Boost?
Throughout our Experian Boost review, we’ve shown you how the program can serve as a way to improve your credit score. It can help you qualify for a line of credit, a loan, or a mortgage. It can also help you lower your interest rates.
If you don’t have a credit history, or if you have poor or bad credit, then Experian Boost can guide you toward improving your score. This process makes it easier for you to get the approval you need.
By using your utilities and phone bills, the program shows lenders that you are a reliable and dependable consumer, and they will get their money on time.
Of course, if you already have good credit, then Experian Boost may not do you much good. But for everyone else, this is a program worth considering.