Experian "Boost": A New Way to Increase your Credit Score
Your credit score can be the gateway to many firsts in life, from buying your first car to settling in your first apartment or home. But starting out, getting a decent credit score can prove to be daunting. Many lenders are unwilling to extend credit unless you have a proven credit history.
Experian, a major credit bureau, is sensitive to the credit needs of beginners in the credit world, now offering a free product that was announced last month. Experian Boost enables consumers to opt to include in the calculation of their credit scores data from cell phone and utility payments. Those who have less experience with credit can thus prove signs of responsible financial behavior that they may not evidence of based on their credit score alone.
Yet Boost may also help those who need to rebuild their credit after financial setbacks. Have you failed to pay your credit card bills and loans on time? Boost may help you along with an estimated 100 million other consumers, according to Experian.
To use Boost, you must allow the program to scan your bank account transactions in able to identify cell phone and utility payments. Information about these payments will then appear in your Experian credit report and will be used when specific credit scores are calculated.
What is more about boost is that it only counts positive payment history so if you miss a utility or phone payment, your score will not be adversely impacted. This is hugely different from how credit scores typically work (where late or missed payments can reduce your score).
Register on Experian's website for early access to Boost, which is expected to be available more widely later this year.
For help on improving your credit, contact us today.