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If you have ever wanted to boost your credit score, you may want to take a closer look at Experian Boost, a new online platform that lets people increase their credit score almost instantly. Experian Boost is free and expected to be available in 2019.
How does it work? With Experian Boost people can opt to let Experian access their online bank accounts in order to add their utility and telecommunications payments into the financial mix that is used to create their credit score.
Once the system accesses the information the consumer verifies their information and authorizes Experian to add it into their credit file. After that point, the additional information is used to update their credit score. All of this happens in real time.
"Globally, we are constantly innovating and leveraging technology to find new ways to help consumers gain access to quality credit while promoting fair and responsible lending," said Experian Global CEO Brian Cassin.
"We are committed to financial inclusion, and Experian Boost is the latest example of our efforts to increase consumer awareness of credit's impact and value while giving them greater control," he added.
People with credit scores under 669 benefit the most
Experian believes that people who have a thin credit file and/or have a score that falls in the 580 to 669 zone are the ones that will see the greatest gains from Experian Boost.
"Limited credit activity and history are key barriers for consumers to achieve their financial goals," said Dara Duguay, executive director, Credit Builders Alliance.
"We fully support initiatives that promote financial inclusion and think Experian Boost could play an important role in overcoming that barrier. We look forward to seeing how Experian's new platform impacts consumers."
Better scores projected
Experian conducted some earn analysis using FICO credit scores to determine the platform's influence on consumer's credit profile. They found that two out of three of the credit scores they used were improved by Experian Boost.
They also found that 10% of people who had a slim credit file could now be scored, while 75% of people with a score lower than 680 experienced a boost in their credit score.
On the other hand, 14% of people with a score that was at or lower than 579 jumped to a score that was deemed "near prime," meaning that it now fell in the 620 to 679 range.
Overall 5 - 15% ended up in a better category when it came to their credit score, depended upon the credit tier they were in.
To get more information on Experian Boost people can visit the website.