Many people rely on their credit score to open new doorways for them in the financial world. It’s used as a measure as to how reliable you are in paying back debts that you owe, such as credit card bills.
The development of Experian Boost has made it easier for people to check what their credit score is so that they can make the right decisions to improve it over time and make themselves more viable for loans that they want to take out. But how exactly does Experian Boost work?
It is a completely free product that allows users to add their utility payments and their cellphones into the calculation of their credit score in order to receive a true measurement. People are more likely to pay their bills on a regular basis so that their credit score is a more accurate representation of how financially responsible they are.
Experian Boost is a great choice for those who don’t have a lot of experience with credit, such as taking out credit cards or loans. However, it’s also a good way to rebuild one’s credit score after suffering from a few financial setbacks.
When someone starts using Experian Boost, they have to allow the app to scan their bank account transactions and bill payments. This allows the app to compartmentalize all of your payments made towards your bills and constructs a credit report based on these numbers.
Thankfully, it won’t look at any payments you may have missed so that your credit score is more positive in the long run. This is the exact opposite of how other credit score calculations usually work, which look at missed payments and subtract them from your overall score.
The only downside to this is that the payments to your bills may be misinterpreted as your debt load, which can negatively affect your chances of getting loans.
Since Experian Boost was released, two out of three customers saw a decent increase in their credit score. The average increase was about ten points, which moved some users into the next credit band.
So how helpful could it be for you? A credit score that is ten points higher may make it easier for you to have access to lenders who previously wouldn’t have looked your way.
Of course, there are other ways you can raise your credit score, such as signing up for a credit card, becoming an authorized user on someone else’s credit card, using a rent-reporting service if you live in an apartment, or signing up for a credit-builder loan in order to build up your credit and savings over time.
Taking care of your credit score will take care of you in the end, allowing you to have more financial freedom in the future. Experian Boost can definitely help you with that, as long as it’s used right and the numbers are properly explained to lenders.