Unlocking the Power of Experian Boost: A Comprehensive Guide
At O1ne Mortgage, we understand the importance of a good credit score in securing favorable mortgage terms. That’s why we’re excited to share insights about Experian Boost, a free tool that can help you improve your FICO® Score instantly. If you have any mortgage service needs, don’t hesitate to call us at 213-732-3074. Let’s dive into how Experian Boost works and how it can benefit you.
What Is Experian Boost?
Experian Boost is a unique feature that allows you to include your history of certain on-time household bill payments in your Experian credit file. This can help build your credit score by factoring in payments that are typically not reported to credit bureaus. Eligible accounts include:
- Phone bills (mobile and landline)
- Utility bills (gas, water, electricity, solar)
- Insurance (excluding health insurance)
- Residential rent (if paid online)
- Internet, cable, and satellite providers
- Video streaming subscriptions
- Trash collection services
These payments are reliable indicators of responsible financial management and creditworthiness. By adding them to your Experian credit report, they can contribute to your FICO® Scores based on Experian credit data.
How Does Experian Boost Work?
Using Experian Boost is straightforward. You choose which bills to share, and you can change your selections at any time. Up to two years of payment history for each bill is added to your Experian credit report. If a lender or other authorized party requests a FICO® Score based on your Experian credit report, it will reflect the Experian Boost data.
Importantly, Experian Boost only considers on-time payments. Late payments are ignored, so they cannot negatively impact your FICO® Score.
Is Experian Boost Free?
Yes, Experian Boost is completely free. You only need a basic Experian account, which is also free. While there is a Premium CreditWorksSM account available for a fee, offering expanded benefits like access to credit reports and FICO® Scores from all three national credit bureaus, it is not required for Experian Boost.
Is the FICO® Score Increase Immediate?
Yes, any score increase from adding payments with Experian Boost happens instantly. Any lender using the FICO® Score 8 with Experian data will see the change reflected in the score results. On average, users of Experian Boost see a FICO® Score increase of 13 points.
Who Should Use Experian Boost?
Experian Boost can benefit anyone, but it is particularly helpful for those with limited credit experience, often referred to as “thin-file borrowers,” and those with fair or poor FICO® Scores.
How to Sign Up for Experian Boost
Signing up for Experian Boost is easy and takes just a few minutes. Here’s how:
- Create a free Experian account. This subscription provides access to your Experian credit report, FICO® Scores based on it, and other services to help maintain good credit health.
- On your account homepage, scroll down to the “Explore other actions” box and click “Add bills to Experian Boost.”
- Enter information on the checking or credit card accounts you use to pay the bills you want added to your credit report. Use the encrypted form to enter the usernames and passwords for those accounts’ online dashboards.
- Experian Boost will identify eligible accounts from the accounts’ automatic payments and retrieve up to two years’ worth of payment history for each.
- Confirm that you want information for each identified account added to your Experian Boost list. As each approved account is added, Experian Boost will indicate the number of points your credit score has changed as a result.
How Can a Good Credit Score Help You?
Having a good credit score offers numerous benefits, including:
- Improved likelihood of approval on loan and credit card applications
- Access to a wider array of offers for loans and credit cards, including options with higher borrowing limits, better perks or rewards, and lower interest rates and fees
- Greater rental options among landlords and property managers that use credit scores in their tenant-screening processes
- Lower car insurance costs in states where car insurance providers use credit scores to help set premiums
- Lower security deposit requirements on home rentals and leased equipment such as wireless routers, cable boxes, and satellite dishes
Is Experian Boost Safe?
Yes, Experian Boost is safe. Protecting customer data is Experian’s top priority. Experian Boost uses multiple layers of security technology, including bank-level SSL security encryption, to safeguard your personal information when you connect your accounts and add your bills.
The Bottom Line
Experian Boost is a free feature that lets you get credit for responsible household bill payments by adding them to your Experian credit report for use in calculating credit scores. Signing up for Experian Boost is quick and easy and may yield an increase in your FICO® Score 8 based on Experian credit data.
At O1ne Mortgage, we are committed to helping you achieve your financial goals. If you have any mortgage service needs, call us at 213-732-3074. Let us help you navigate the path to better credit and better mortgage terms.
