How Is Experian Boost Legal (UPDATED)

Raise Your FICO® Score Instantly with Experian Boost™

Experian can help raise your FICO® Score based on bill payment like your phone, utilities and popular streaming services. Results may vary. See site for more details.

Other Ways to Add Payments to your Credit Report

There are several other systems that let you add regular payments to your credit report.

Experian RentBureau adds rent payments to your Experian credit report. It’s free and easy to use. Your landlord will have to be willing to participate.

Rent reporting services like Rent Reportes, LevelCredit, and Rental Kharma will report your rent payments to the three credit bureaus, but you will pay a fee.

eCredable Lift is a service similar to Experian Boost but run by TransUnion. Using both Experian Boost and eCredable Lift will place your utility payment records on two of your three credit reports.

These services have limitations. The change in your credit score won’t be dramatic, and it will only affect one credit report.

On the other hand, Experian Boost is free (there’s a fee to use eCredable Lift). These services are easy to use and pose little or no risk. What have you got to lose?

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What Experian Boost Won’t Help With

Even if a new scoring program boosts your score on paper, reaping the benefits in practice can get a little more complicated.

Each of the three credit bureaus (Experian, Equifax, and TransUnion) determines your score based on the information found in your credit report with that bureau. Your lender may pull a credit score based on your report with any of these bureaus, or they may pull multiple scores based on all three reports. If your lender chooses a score based on Equifax data, for example, Experian Boost will make no difference. It only benefits your Experian score because it’s only added to your Experian credit report. 

The score your lenders sees can also vary based on the model used to calculate the score. FICO and VantageScore, the two most common credit scoring systems, have multiple models available that lenders can choose from, and credit-boosting programs like Experian Boost won’t appear on every model.

FICO 8, FICO 9, VantageScore 3.0, and VantageScore 4.0, the most commonly-used versions of each, do include Experian Boost. Credit Card issuers often use FICO 8 scores, so Experian Boost could increase your odds of getting approved for new cards. But if you were to apply for financing to buy a new car, and your auto lender uses the industry-specific FICO AutoScore to assess your creditworthiness, Experian Boost wouldn’t show up or make any difference.

Experian Boost also cannot create a credit report where one does not exist, says John Ulzheimer, national credit expert who formerly worked for FICO and Equifax. While a program like TransUnion’s eCredable Lift may have benefits for someone with zero credit history, Experian Boost can only enhance an existing report, so you must already have at least one account reporting to the bureau.

You may find your score doesn’t increase at all after adding accounts to your report. That doesn’t mean adding that payment history won’t eventually increase your score over time, but you may not see an immediate boost.

Also, not all of your recurring payments — even those the program can add to your report — may work. The service provider must appear on your bank account or credit card statement to be captured by the system; if you pay by check or your bills are compiled into one payment, Boost is unable to read that as the correct payment.

“It was something I bumped into when I was enrolling,” Griffin acknowledges. “My water bill is incorporated with my trash pickup and other city bills in my municipal bill, so we can’t include that because we can’t break it out, we can’t identify it. That may be a hurdle in some instances.”

Is Experian Boost Legal?

You might wonder if all of this is legal. Can Experian expect you to give them access to your bank history so they can see your payment records?  

Rest assured that Boost is 100% legal. The service is optional.  You do not have to participate.  As for their access to your records, that’s Experian’s entire business model. They are a consumer reporting agency.  Every time a credit card company or lender has sent Experian information about you, you have given them permission to do so (probably in the fine print when applying for a new credit card or loan, which few of us ever read).

Just Because You Can Get Credit, Should You?

Generally, a scoring system that takes into account utility and telecommunications payment history and could raise your credit score sounds like a good thing. But the concerning part about this new scoring system is that it was developed basically as a mechanism to increase loan approvals and make it easier for consumers to get credit.

Just because a lender will make a loan to you or give you credit, doesn’t mean you should take it. Ultimately, you’re in the best position to determine whether you can afford to take on new debt.

Is it Secure to Use Experian Boost?

In 2017, a massive data breach happened at Equifax when about 147 million consumers were affected. In turn, they had to settle with around $500 million payment to be divided between those affected.

There might be several pros and cons of Experian Boost. But, providing access to your bank accounts to third parties, like credit reporting agencies, is a threat. It might be accessed by hackers if your day is bad.

Hence, I suggest you rethink whether you can provide your personal information to improve your credit score.

But if you have less credit history and want to develop a credit score, you might think to opt for it.

If you wish to go ahead with Experian Boost, I suggest you follow other guidelines simultaneously to improve your credit score.

So, Can Experian Boost Improve Your Credit Score?

Two thirds of people who sign up for Experian Boost see an increase in their score, and the average jump is 13 points, according to Griffin.

If your credit score is already at the higher end of the spectrum (mid-700s and above), any boost you see may be minimal. But for people with credit scores of 680 or lower, the average increase is 19 points. 

“The people who see the most impact are people who have a short credit history, a thin credit profile made up of fewer than five accounts, or scores below about 680,” Griffin says. “So if you’re just starting out or you’ve had some credit issues in the past but you’re moving in the right direction, that’s who is benefiting the most.”

If you don’t see any benefits to your score initially, it is possible that Boost will help over time through a sustained positive payment history. Still, you can choose to remove Experian Boost from your credit report at any time with no negative repercussions; your Experian credit score will simply revert to what it was before.

Why Is a Strong Credit Score Important? 

Some people may not realize the magnitude that their credit score can have on their life. They may not have received the proper financial literacy education about why things like this matter, but they do matter. The fact is, a strong credit score can be useful when acquiring other forms of debt. For example, most people will have to borrow to be able to afford the following things

  • A house
  • A car
  • Their wedding
  • Medical bills

The list goes on and on. If one does not have a credit score that is strong enough to acquire more forms of credit, then they may find themselves in a position where they simply cannot borrow the funds necessary to obtain those important elements of life. Some things in the list are more essential than others, but all of them matter to some extent.

Failure to work on your credit score could mean that you are denied the funds necessary to make purchases such as these. It can be both upsetting and discouraging at the same time.

Boost Your Credit Score With DoNotPay

Here are the 4 ways DoNotPay can help you clean up your credit report:

  1. File a Goodwill Removal Request Letter
  2. Send a Credit Dispute for Inaccurate Reports
  3. Submit a Debt Validation Request
  4. Mail a Pay-to-Delete Negotiation Letter

If you want to clean up your credit report but don’t know where to start, DoNotPay has you covered in 3 easy steps:

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  2. Prepare a recent copy of your credit report that you can use as reference. 

     

  3. Let us guide you through the 4 potential options:
  1. If you’ve already paid off your debt, we’ll help you file a Goodwill Removal Request to get it removed. 

     

  2. If you notice any errors in your report (we have a list of common errors you can use!), we’ll help you file a credit dispute to the creditor or major credit bureaus. 

     

  3. If there are no errors, we’ll check if you’re still eligible to file a debt validation request. If they can’t validate your debt, they’re required to remove it from your report and they can’t collect it! 

     

  4. Lastly, if none of the above options work, we’ll help you file a pay-to-delete negotiation letter. You can customize the amount you are willing to pay in exchange for getting the item removed. 

     

Pros and cons of Experian Boost

Experian Boost is worth signing up for if you’re looking for an easy way to boost your credit score. However, the service has limitations, so you shouldn’t expect any miracles.

Let’s take a look at the advantages and disadvantages of Experian Boost.

Advantages of Experian Boost

Experian Boost has three main benefits:

  • Zero cost: There are other companies (like LevelCredit, for example) that offer similar services that add your regular monthly payments to your credit report, but most of them cost money. In contrast, Experian Boost is free.
  • Immediate score improvement: Unlike most other methods for building your credit, Experian Boost instantly updates your credit report, giving you an immediate increase in your credit score after you’ve registered. 7 This can help you qualify for credit and loans with more favorable terms, such as lower interest rates.
  • No risk: Signing up for Experian Boost won’t cause a drop in your credit score, even if you’ve missed bills in the past. This is because Experian only adds on-time payments to your credit report.

Downsides of Experian Boost

Experian Boost has several drawbacks:

  • Less effective if you have good credit: If you already have a solid payment history and a good credit score, Experian Boost isn’t going to have a substantial effect on your credit. According to Experian, a full 21% of people with poor credit who have used the service were able to boost their FICO score into the “fair” range, but only 3% of people with “good” credit saw their score move into the “very good” range. 6
  • Doesn’t affect your Equifax or TransUnion credit scores: As mentioned, Experian Boost only adds your payments to your Experian credit report. This means that your TransUnion and Equifax credit scores won’t increase when you sign up.

Disadvantages How Is Experian Boost Legal

Here are some drawbacks of Experian Boost that we need to look at to derive at a good discussion on How Is Experian Boost Legal.

Not Available In All Locations

Experian Boost is not offered in all states. Experian, among the three major credit score bureaus, does not offer its solutions to every U.S state. There are 17 states where Experian can not help enhance your FICO rating which may lead you to think about other choices for improving an inadequate credit score or perhaps surrender on Experian Boost entirely if it can not be made use of in any way in your state.

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Unsuitable For Home Loan

You ought to not use Experian Boost if you are likely to make an application for a mortgage. Experian discloses that its Experian Boost product is created only as an academic tool.

The credit rating it offers might alter depending upon which credit record detail is made use of, whether or not your FICO Rating has actually been changed just recently because of modifications in the racking up design, the number of times your data has transformed (including house address) when considering that last time Experian opted-in updated your data with new ratings.

Mistakes On Credit Scores

If there is any type of error on the credit reports supplied by lenders Experian Boost is unable to take any action on it. Experian does not regulate the info in your credit score records. And Experian’s products are not able to make modifications or avoid mistakes from showing up on your credit report.

Experian likewise offers no warranty that its services will certainly boost an individual’s FICO rating nor can they assure a precise number as you ought to recognize what other individuals state about their experiences with Experian Boost service.

Quality Is Not Assured

The only thing Experian Boost assurances is getting one totally free duplicate of each of 3 major customer coverage agencies (Equifax, TransUnion & Experian) data when enrolling in this product but there might be some inaccuracies present in those reports which can seriously affect your opportunities while applying for lendings like a mortgage. I find that it is critical to highlight this concern in this post, exclusively on How Is Experian Boost Legal given that we are reviewing it.

Experian Boost Prices – Just How Much is Experian Boost?

The Experian Boost price is $19.95 each month, with cost savings of approximately 30% on your credit history record. You can alternatively sign up for a totally free test and also obtain one Experian Credit score Report & Score without paying anything.

It deserves noting that Experian Boost does not offer any kind of discount rate on your FICO score. Is it worth the cost? Experian Boost can help you to boost your FICO rating in a short time, but, the price is high.

As Experian Boost deals with Experian Credit history Information and Ratings only it might not be suitable for those that need other credit scores like Equifax or TransUnion Rating.

Experian’s business model focuses generally on their own items so they make certain that what they provide has the finest quality ever. As a result, it deserves the cost that you pay.

What Is Exactly Experian

Experian is an international information solutions business that gives data and analytic products or services to businesses around the world. The Experian Data Quality Group takes care of Experian’s credit history data source, which contains over 500 million data on greater than 200 million individual customers worldwide.

Experian’s core service is providing information remedies for clients in threat administration, marketing, as well as choice production. Its subsidiary, Experian Info Solutions Inc., comprises almost 50% of its profits with its Credit rating Database Services division representing 30%.

Experian’s Decision Analytics division represented simply over 25% of Experian’s revenue in 2017. Experian’s Experian Information Quality department stood for just over 15% of Experian’s revenue in 2017.

Experian likewise offers commercial credit score reports and logical tools for the automobile market, consisting of dealerships, renting businesses, vehicle producers, and banks or banks taking part in the vehicle financing market.

Features Synopsis – How Is Experian Boost Legal

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Experian Boost credit rating simulator allows you to track your development and recognize just how much time you require to get to an excellent FICO rating. Experian also supplies different pointers to assist boost your credit rating quicker.

You can see the impact of different actions on boosting your credit report health like repaying financial debt or getting a new financing in time and to watch out for aspects that have actually affected modifications in your Experian Boost Credit Score such as obtaining new finances or opening or closing accounts.

With this function, it will be easier to identify which activity has actually had what effect on enhancing your Experian Boost Credit Score without needing to presume yourself. Experian’s countdown clock feature is another useful addition they made with Experian Boost since it informs you precisely how much time it takes before late settlement will certainly be consisted of in your Experian Boost credit rating.

It is essential to keep in mind that Experian has not yet executed this function as the device remains under development right now, yet, Experian states they intend on consisting of countdown clock functionality by Q2 2020 and also want to have their beta testers entailed prior to its official launch.

Experian boost likewise motivates individuals of the Experian Boost Credit history Simulator tool who are interested in participating in the testing for the countdown clock function to express their interest so there can be sufficient participants for precise results from testing when Experian boost completes the Experian Boost countdown clock.

There are likewise various other solutions you can spend for if you desire a lot more features, such as Experian Credit Lock which costs $19.99 monthly, or Experian Identity Functions Premium where you have an option of 3 different packages that set you back between $16-$24 depending upon the plan type.

Raise Your FICO® Score Instantly with Experian Boost™

Experian can help raise your FICO® Score based on bill payment like your phone, utilities and popular streaming services. Results may vary. See site for more details.

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