How to Boost Your Credit Score Instantly

Could your score use a little boost? Soon enough, you’ll be able to increase your score in a matter of minutes! Experian has announced a new program that will give consumers with limited credit history an opportunity to prove they are trustworthy borrowers by using information from their checking accounts. Millions of Americans could instantly improve their credit scores thanks to this new credit score program. Consumers who choose to use this new program will be able to use their phone and utility payments from the past 2 years in order to demonstrate financial responsibility. This process would only take a few minutes and potential lenders will receive the updated FICO score instantly. Let’s learn more about Experian Boost and how it can affect your credit.

By allowing lenders to see your recurring payments, you will help build positive payment history and length of credit, therefore, improving your credit score instantly. Only your positive payment history is collected and you can remove the new data at any time. Experian Boost will be especially beneficial to those with limited credit history and will demonstrate to lenders that you should be extended credit. Those who have not been able to get approved for credit in the past can now look forward to establishing credit history.

Fun fact, when Experian first announced this program, they estimated approximately 100 million American consumers had scores that were too low or did not have enough credit history which caused them to be denied loans or pay outrageous interest rates. Consumers with poor credit scores end up paying approximately $200,000 more for credit throughout their lifetime. Imagine what you could do with all of that money!

It’s important to have good credit when it comes to getting utility services, renting an apartment, or getting better insurance rates. Some employers even look at an applicant’s credit report before hiring. We don’t even realize that such important parts of our lives are affected by credit. If you have a score between 580 and 669, you will benefit the most from this new program. So how exactly does Experian Boost work? Experian Boost will calculate your new credit score based on the FICO Score 8 model and give you extra points for the utility and mobile phone bills you’re already paying. As you may already know, these payments did not affect your score in the past. It’s possible that your lender or insurer may use a different FICO score other than FICO Score 8, or a completely different type of credit score. Also, keep in mind that not all lenders use Experian credit files. Either way, this new program allows you to be in control and opting into this program can be very beneficial.

Credit reporting agencies have been working to give lenders the tools to extend credit to more borrowers. Lenders will now have access to more data in order to make decisions whether or not to approve a borrower. There is also a new scoring system called UltraFICO, that uses the information from your checking and savings account to demonstrate responsible financial behavior. These two new tools, UltraFICO and Experian Boost, will allow credit to be extended to those consumers who may not have qualified in the past.

So go ahead and give this new program a try, and you may just see an instant boost in your credit score! Experian Boost will be launching very soon! In order to be one of the first to find out when it’s ready, make sure to sign up on experian.com and you’ll also be able to check your FICO score for free and get a copy of your Experian credit report.