You should consider the pros and cons of Experian boost if you are planning to enjoy its services. But first, you should know what exactly it is.
What Is Experian Boost?
Experian Boost, an alternative service first launched in 2019 by credit bureau Experian, enables you to link data to your credit report.
For example, utilizing this service, if you link your bank account, you can combine three types of different payment data to your credit history, including utilities, telecom, and video streaming services such as Netflix, Hulu, HBO, and Disney+.
How Experian Boost Works?
According to the Experian credit boost reviews, to benefit from Boost services, you’ll have to sign up, which consumes only a few minutes formally.
- Navigate to the official website and click to register for the free service.
- You’ll be requested to enter all your essential data for registration.
- Connect the bank account you will be using to pay your bills.
- Choose payments you require to transfer into your credit report.
- Scanning of your bank account data will occur, which Experian will use to calculate your credit score. You’ll be notified instantly about your new FICO score.
Experian Boost doesn’t take responsibility for late payments, which can cause a drastic decrease in your credit score.
What Are The Pros and Cons of Experian Boost Reviews
Generally, Before investing in services, you should know about them thoroughly.
Here are some pros and cons depending upon the Experian Boost reviews
Experian Boost has been free. It allows you to handle the accounts that you want to include in your Experian credit report or not.
- Typically, utility companies do not report the monthly payments to the major credit bureaus. This means, according to Experian credit Boost review, you’re not getting any credit for paying your utility bills.
- It is baffling to build a strong credit history and credit score with only one credit account, so creating more accounts will be helpful.
- Experian Boost only considers positive payments in your credit reports, and you must be having at least three months of consecutive payments in your account you want to add.
- Delayed payments do not hurt your credit scores since they won’t be included in your credit report.
- For those struggling with credit scores, this could be a much-needed step in a promising direction.
- If you’re eligible for a score increment, you’ll notch up your new score instantly the minute after you select the relevant payments.
Equifax and TransUnion are the potential competitors of the pros and cons of Experian boost. According to the industries, all these three are different; they focus on financial services, employment, and income, insurance, etc.
Top-rated Experian Boost Review: It increases the Boost credit for you for paying utility and cell phone bills, improving your overall credit score for free.
Now let’s consider the disadvantages of this new approach.
- As security remains the fundamental issue with electronic payments, some people concerned about bank account information security consider Experian Boost as a non-starter as it needs access to your online checking account.
- Experian Boost can scan your processing by looking at your transactions to utility companies from your online checking account. This means you are unable to use credit card payments and earn reward points on utility purchases.
- It is authentically true for your credit scores, but it doesn’t work when applying for a loan.
- If you are creating a reliable credit history, Experian Boost is not for you because it works for people who already have a suitable credit file.
- It merely helps your Experian score. It won’t help your scores at the other major credit bureaus, such as TransUnion or Equifax.
- Since all lenders may not be familiar with it, they may stream your utility and cell phone payments on your credit report and consider it part of your debt load. Experian ensures that it is dealing with lenders to consider these certain payments.
If the keeping in view the pros and cons of Experian Boost, it can be summarized that Experian Boost is a complimentary, optional service that enables you to include alternative payments into your credit reports to boost your credit scores. This service is an attractive option if you have limited credit and want to improve it, but it isn’t a good fit for limited alternative payment histories.