How Does Experian Boost Work? A Brief Guide

Imagine trying to take out a loan or getting a credit card only to have your application denied because of your creditworthiness, or lack thereof. This can be disheartening, especially if you are in dire need of these financial products. 

A credit score is a deciding factor for companies that offer such products, which means that you need to have an acceptable rating to earn approvals for your application. This can also influence interest rates and limits, making it all the more important.

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If you are worried about applying for financial products because of a low credit score, you might want to check out what Experian Boost has to offer. Here’s what you need to know about this service.

How Does Experian Boost Work? A Brief Guide

What is Experian Boost?                         

This service is offered by credit bureau Experian, a company that deals with reporting consumers’ borrowing and payment habits. 

This firm works with lenders and credit card companies to create a database of consumers’ outstanding loans and payment histories.

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This firm offers a credit booster service called Experian Boost, which lets consumers increase their FICO scores, which is what credit ratings are based on. Keep in mind that FICO scores are used by almost all lenders in the country. 

The main claim of this service is that it can increase your rating instantly. For average users, it reportedly increased scored by 13 points, which can be significant for people who are near the minimum bar. 

How Your Score Improves

The company lets you boost your score by letting you count utility, Netflix, and telecom payments toward your history. Other on-time monthly payments could also qualify for this, you will need to check with Experian.

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 All you have to do is to connect the bank account which you use to pay the monthly bills to your Experian account. .

The service then looks for on-time payments with your permission. Take note that it only scans those that are qualified. Then, it will seek permission to include these payments to your credit background. 

The process can be instantaneous, with claims that it can be as fast as 5 minutes. Within this short time, you will be able to see a difference in your rating. 

A Word of Caution

While this service claims to raise consumers’ FICO ratings, keep in mind that its ability to do so has limitations. On its website, Experian even has a disclaimer saying, “Some may not see improved scores or approval odds.”

This is because the service only impacts some aspects of your credit history. However, different lenders prefer to use different information when evaluating your creditworthiness. 

That means some monthly bills you use to boost your credit score may not affect your score for lenders who do not wish to take that information into account. For example, some places may accept Netflix payments, and some won’t. .

So, Can Experian Boost Raise My Credit Score?

Given the disclaimers provided by the company, you can see that this service definitely has the potential to boost your rating, especially as it helps you build a credit history. This is ideal for beginners who don’t have a history.

According to the company, it has boosted numerous ratings with a total of 29 million points given to consumers who use this service. 

The great thing about this is that some lenders even recommend using this service to help you increase your chances of getting your loans or credit card application approved.

How Does Experian Boost Work? A Brief Guide

The Bottom Line

Experian Boost offers a great opportunity for beginners or those with low scores to build credit history and increase their ratings. With the use of this service, you may finally get the score you need to get that loan or credit card. 

Just make sure to pay your bills on time if you want to reap the benefits of your improved score

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