Experian Boost: how it works, who benefits from it

Experian Boost is a program launched in 2019 that allows you to include your positive utility and phone bill payment history on your Experian credit report and factor it into your FICO or VantageScore score.

The result: an “improvement” in your credit score. And the program is a win-win for consumers and credit bureaus. Experian Boost enables many borrowers to get the best interest rates and products, and helps Experian sell more credit reports.

How does Experian Boost work?

The Boost program is the result of an internal study by Experian that found a strong correlation between utility bill payments and future loan defaults. FICO and VantageScore have agreed with Experian and you can now factor these scores into your credit score.

Getting these extra points is easy. The Free Program is a voluntary program that you initiate by visiting the Experian website. Once there, you will need to identify yourself. This is pretty much the same process you follow to get your credit report online.

Once you have proven that you are who you are, you begin the process by adding your checking account information to your credit file. You can add more than one checking account from more than one bank. You can also use a joint account, but you cannot use a business checking account.

Behind the scenes, Experian uses the leading financial data aggregator Finicity to make all the connections between Experian, FICO, VantageScore and your bank. Most banks are already online, but some smaller ones are not. If your bank is not connecting, just let Finicity know and they will contact that bank.

Here are some great features that make the program a winner for everyone:

• It collects only positive information about the payment – nothing negative will appear in your current account.
• It looks back 24 months from the start, so most people won’t have to wait for a payment history to be built.
• It covers all types of utility bills such as electricity and gas, cable TV, mobile phones, landlines, and even water bills if they can be identified.
• You can opt out at any time.

Who will benefit the most from Experian Boost?

So what can you expect from using Boost? Well, the more rows of data you can provide, the better. Here’s who benefits the most:

• Those with thin credit files (five or fewer accounts) will see the most impact from the program, but you need to have at least one traditional account open to receive a boost.
• If you are new to lending (short credit history) or just don’t have many loans in your lending business, you can benefit from the program.
• Those with scores just below the next level of credit rating may want to consider using the program.

A grade increase of around 10–30 points is usually feasible and the effect is almost immediate. During the registration process, Experian will provide you with a free credit report and assessment. Once registration is complete, you will immediately receive an updated invoice.

Even the highest scorers can add a few extra points, but the impact of going from 800 to 805 is not as dramatic as going from 680 to 700. Boost data affects FICO 8 and 9 and VantageScore 3 and 4.

Please be aware that this service is only available from Experian, so if a potential lender only uses Equifax or TransUnion credit reports and scores, Experian Boost may not be able to help you get approved for a credit card or loan.

bottom line

Consumer credit advocates love Experian Boost, and there’s more good news: Experian also has a RentBureau that lets you report rent payments on your credit report. Plus, with the new UltraFICO score, you can be recognized for good money management and savings habits. With all of these ways to boost your score, you shouldn’t have too much trouble doing one of them.

Steve Bucci has been helping people decipher and solve personal finance issues for over 20 years. He is the author of The Dummies’ Credit Management Kit, The Dummies’ Credit Repair Kit, Barnes and Noble Debt Management, co-author of The Dummies’ All-In-One Money Management Kit, and The Credit Repair Kit. For Dummies (Australia). Steve is an experienced expert witness in identity theft, credit scoring and debt cases. He has been a speaker at the FICO InterACT Global Conference, the Federal Reserve and the International Credit Symposium at the University of Cambridge in the UK.