Experian Boost – Does it really boost your FICO?

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We break down Experian’s new self-reporting system, Experian Boost. Is it right for you? You decide.



[What, How, Pros, & Cons]

To sign up for Experian Boost, visit https://bit.ly/2IiNMB0

Now generally speaking, we don’t do a lot of videos regarding credit on this channel, as we are a business finance company. However I found this topic to be important, as personal credit is very integral in getting business financing. So what we’re going to do today is we’re going to cover the Experian boost program.

  • What it is.
  • How you can benefit from it.
  • The Pro’s and Con’s of it.
  • and finally, how you can sign up for it.

First of all this is a huge breakthrough in credit reporting. Why? Because over the last several decades you have never been able to report an account yourself as a consumer, and this is what the program allows you to do. Ever since credit reporting was developed only creditors, Banks, and credit unions are able to report information on to your credit report. So Experian is doing something completely counter-intuitive, what they’re going to do is let you, as a consumer, add-on utility bills and mobile phone payment accounts to your credit report. Then take that data and potentially help you boost your FICO score.

When I was a kid my parents advised me to never bounced a check, because it’ll ruin your credit score. When I grew up I found out that this is a complete myth. The advice was great and good-natured, you should never bounced checks to begin with, however the consequences that they thought would occur were completely false.

Checking and savings account information is not actually reported on your credit report and does not factor into your FICO score. This led me to my next question, how about paying your gas electric water and cell phone bills on time, does that help or hurt your credit?

Utility Bills & Your Credit Score

The one sided arrangement.

If you pay them on time, it does not help your credit. However if you don’t pay them, and the utility provider decides to the report you to the credit bureaus, it is definitely going to hurt your credit.

 

Well….that’s not really fair is it? Experian is trying to level the playing field just a little bit to help out consumers,but whether it helps or hurts and whether it’s beneficial for you is for you to determine. So what exactly is the Experian boost system? Basically, it allows you to go on Experian.com and self report your utility bills and your cell phone payment. How do you do this?

Experian Boost System

a game changer for some

Experian allows you to connect your online accounts of your utility providers with Experian.com and they’ll report that data, and calculate that into your FICO score. According to Experian, if you have on time payments, then Experian Boost is going to increase your FICO score, however if you miss payments, they’re going to completely leave that out of the equation.

 

So what are some of the pros of linking your utility login credentials to Experian.com?

  • Well, first of all it’s FREE!
  • There’s a chance that it could increase your FICO score, especially if we have a thin or a new credit profile. It will add some more trade-lines at no additional cost and you don’t have to do anything in addition to just continue paying your bills.

  • Experian is saying that only positive information will be used, and any derogatory or negative information will be skipped over, and not factored into your FICO score.

  • Lastly you’re completely in control, which means if you no longer want to participate in the experience boost all you have to do is go on the Experian boost web portal and disconnect all your accounts.

Is the Experian Boost System too good to be true?

you decide

Now let’s take a look at some of the drawbacks of doing this.

  1. You’re going to have to provide your login credentials to all your utility providers to Experian.com, and with all the reports about privacy issues that have recently occurred, many consumers would be justified in thinking that this information could potentially be used by Identity thieves and hackers.’

  2. Next, even if you opt into Experian boost, there’s no guarantee that your credit score will actually increase, any positive data from your utility providers is only going to benefit your Experian profile, because the information is not shared with TransUnion or Equifax. So even if Experians boost system increases your score by 20 points, ONLY your Experian credit score is going to increase. Your TransUnion and Equifax scores are still going to lag behind by 20 points.

How do you sign up for Experian Boost?

Finally how do you sign up for this? Very simple, follow the link below to Experian.com and sign up for Boost, from there you can actually connect the accounts that you want after giving them your login credentials to all your utility providers and you can skip over the accounts that you don’t want to connect to experience so again you’re completely in control.

 

To sign up for Experian Boost, visit https://bit.ly/2IiNMB0

Experian Boost: Is it right for you?



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