How Does Experian Boost Work to Build Credit? - NerdWallet (2024)

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When you’re starting out, getting a credit score can be maddeningly elusive. Many lenders are reluctant to extend credit unless you already have experience with credit. Credit bureau Experian wants to ease that Catch-22 for credit novices with a free product called Experian Boost.

Key takeaways:

  • Using Boost lets your streaming, phone and utility payments "count" toward your Experian credit score. Renters can also sign up to have eligible rent payments reported to the credit bureau.

  • Boost scans your bank transactions for the payments, and reports only positive payment info.

  • You must give enough personal data for Experian to access your accounts.

The idea is to help thin-file customers — especially those who have less experience with credit — by incorporating signs of responsible financial behavior that traditionally aren’t seen by credit reporting bureaus. Boost also may help people who are rebuilding credit after financial setbacks.

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How Does Experian Boost Work to Build Credit? - NerdWallet (1)

How does Experian Boost work?

To use Boost, consumers must sign up for a free membership on Experian’s website and grant permission to connect their online bank accounts. Boost then identifies streaming, utility, cell phone and rental payments. Once a consumer verifies the data and confirms they want it added to their Experian credit file, an updated FICO score is delivered in real time.

Information about payments will appear only in their Experian credit report and be used when certain credit scores are calculated from that data.

Boost counts only positive payment history, Experian says, so missed payments will not hurt your score. That’s different from how credit scores usually work, where missed or late payments are recorded in your credit report and can reduce your score.

What is included in Experian Boost?

Eligible payments you can add to your Experian credit file include:

  • Phone and internet services.

  • Rent.

  • Utilities such as water and gas.

  • Telecom.

  • Insurance such as home, life and auto.

  • Video streaming services such as Hulu and Disney+.

Bills must be in your name and may need to meet other criteria to qualify.

In addition to reporting bill payments, Boost users can:

  • Get a free FICO score and credit report.

  • Get a free identity scan to check if their personal information is at risk.

  • Get offers for financial products like credit cards, loans and car insurance.

Decide whether these features make sharing your financial details with Experian worth it.

Does Experian Boost actually build your score?

Boost may or may not help you build credit. When a lender checks your credit, it may pull your credit score or view your credit report from any or all of the three major credit bureaus, Experian, Equifax and TransUnion.

Boost can benefit the most common versions of FICO and VantageScore, Experian says. Lenders would see the effects of Boost only if they view your Experian credit report or pull those most commonly used credit scores using Experian data.

Experian acknowledges that Boost users may not see a bump in their scores. The company says that users who did get a bump received a 13-point FICO 8 gain, on average.

Boost vs. UltraFICO and eCredable Lift

Experian offers another product in conjunction with FICO, also aimed at helping thin-file consumers. The UltraFICO score also requires access to your bank account data to gauge financial behavior. Instead of utility payments, the score factors in how much you have in savings and whether you incur overdrafts in your checking account.

Boost competitor eCredable Lift can pull information from utility accounts. It reports utility tradelines to TransUnion, and it goes back up to 24 months. It requires credentials to connect to utility accounts, and can be useful even if the customer is unbanked or underbanked. It's not free, though. It costs $9.95 a month and affects only TransUnion credit reports.

Other ways to build credit

Boost and UltraFICO influence only your Experian credit report and scores built using that data. You can do other things to strengthen your credit, and the effect of these steps can extend to all three credit bureaus:

  • Become an authorized user on someone else’s credit card. When someone with an established credit line adds you as an authorized user, you benefit from their good credit habits. Make sure the card reports authorized-user status to the credit bureaus.

  • Apply for a secured credit card. This starter card is backed by a deposit that also serves as your credit limit. It’s best to put a small, recurring charge on it and set up autopay. The small charge means you’re not using too much of your credit line, which can hurt your score. The automatic payment guards against a late or forgotten payment, which also can damage your score.

  • Use a credit-builder loan. Credit unions typically offer this type of loan, which builds your credit and savings at the same time. It requires a monthly payment that’s held in a separate savings account until you pay off the loan.

  • Use a rent-reporting service. Some companies offer to have your rent payments reported to the credit bureaus, allowing you to build your credit file.

Building credit takes time and patience, and it pays to track your progress. NerdWallet offers a free VantageScore 3.0 credit score as well as a free credit report from TransUnion.

How Does Experian Boost Work to Build Credit? - NerdWallet (2024)

FAQs

How Does Experian Boost Work to Build Credit? - NerdWallet? ›

This free service lets you add points to your existing credit score. Here's how: Sign up on Experian's website and connect your bank account information, allowing Boost to scan your transactions for utility, cellphone, insurance and rent payments. Select the bills you want added to your Experian credit report.

Does Experian Boost really increase your credit score? ›

Yes, if you receive a score increase when you add payments with Experian Boost, the increase will happen instantly. Any lender that uses the FICO® Score 8 with Experian data will see that change reflected in score results. Users of Experian Boost whose scores improve see an average FICO® Score increase of 13 points.

What are the negatives using Experian Boost? ›

Cons
  • Your score may not improve. There's no guarantee that your credit score will improve after adding the additional information.
  • Only works with Experian. ...
  • Must share personal data.
Jan 31, 2024

How to increase credit score by 100 points in 30 days? ›

Steps you can take to raise your credit score quickly include:
  1. Lower your credit utilization rate.
  2. Ask for late payment forgiveness.
  3. Dispute inaccurate information on your credit reports.
  4. Add utility and phone payments to your credit report.
  5. Check and understand your credit score.
  6. The bottom line about building credit fast.

What brings your credit score up the fastest? ›

  1. 1. Make On-Time Payments. ...
  2. Pay Down Revolving Account Balances. ...
  3. Don't Close Your Oldest Account. ...
  4. Diversify the Types of Credit You Have. ...
  5. Limit New Credit Applications. ...
  6. Dispute Inaccurate Information on Your Credit Report. ...
  7. Become an Authorized User.
Jun 4, 2024

Should I link my bank account to Experian Boost? ›

The links power the Experian Boost and Personal Finances tools, and they're generally safe and secure. However, there's always a risk with sharing information, and you can unlink accounts at any time and request Experian to delete your personal data.

Is Experian boost or credit karma more accurate? ›

Experian vs. Credit Karma: Which is more accurate for your credit score? You may be surprised to know that the simple answer is that both are accurate. Read on to find out what's different between the two companies, how they get your credit score, and why you have more than one credit score to begin with.

Is 650 a good credit score? ›

As someone with a 650 credit score, you are firmly in the “fair” territory of credit. You can usually qualify for financial products like a mortgage or car loan, but you will likely pay higher interest rates than someone with a better credit score. The "good" credit range starts at 690.

How long does it take to build credit from 600 to 700? ›

It can take 12 to 18+ months to build your credit from 500 to 700. The exact timing depends on which types of negative marks are dragging down your score and the steps you take to improve your credit going forward.

Why is my FICO score 100 points lower than credit karma? ›

Why is my FICO® score different from my credit score? Your FICO Score is a credit score. But if your FICO score is different from another of your credit scores, it may be that the score you're viewing was calculated using one of the other scoring models that exist.

What is #1 factor in improving your credit score? ›

1. Payment History: 35% Making debt payments on time every month benefits your credit scores more than any other single factor—and just one payment made 30 days late can do significant harm to your scores. An account sent to collections, a foreclosure or a bankruptcy can have even deeper, longer-lasting consequences.

Can I buy a house with a 599 credit score? ›

You can get a mortgage with a credit score as low as 620, 580 or even 500, depending on the type of loan. Some mortgage lenders offer bad credit loans with more flexible qualifying requirements but higher costs. Others offer free credit counseling to help you improve your score before applying for a loan.

Is it worth paying for Experian credit Expert? ›

Ultimately, whether it's worth paying for a premium Experian account or not will depend on how closely you need to monitor your credit record. Since a general overview of your credit score is free, if you only require a cursory look at your credit report then these premium features might not be worth the investment.

Why is Experian credit score so much higher? ›

Why is my Experian credit score different from FICO? The credit scores you see when you check a service like Experian may differ from the FICO scores a lender sees when checking your credit. That's because the lender may be using a FICO score based on data from a different credit bureau.

Should you boost your credit score? ›

Looking after your credit score can help you get a better rate of interest for your home loan. 'Look after your credit score, and it'll look after you. ' This could be the mantra you need when you apply for a mortgage, and to help you get a great rate of interest.

Does increasing credit increase credit score? ›

Increasing your credit limit could lower your credit utilization ratio. If your spending habits stay the same, you could boost your credit score if you continue to make your monthly payments on time. But if you drastically increase your spending with your increased credit limit, you could hurt your credit score.

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