Experian Boost – How It Works And Main Benefits
Experian Boost is a recently launched program by Experian that can help you get a higher credit score.
This program intends to help millions of consumers especially the ones who don’t have a long borrowing history.
Experian Boost is an online platform where consumers can raise their credit scores. In order to do this, they only need to connect their online banking data and then allow access to telecommunications and utility payment histories.
How Experian Boost Works
As we already said, the Experian Boost is an online platform that aims to help consumers potentially increase their credit score. All you need to do to access this tool is to register for a free account. This is a required step since this is the way Experian has to identify you and provide your FICO score. After registering, you will need to connect your online bank account. This will allow Experian Boost to look at the payments that you made in the last 24 months for both phone and eligible utilities.
You will then have the ability to add these payments into your credit report and your credit status will b updated immediately. Even if you usually pay these bills using multiple bank accounts, you shouldn’t experience any problem.
One of the things that you need to know is that you can simply remove your data at any time you want.
Who Can Benefit From Experian Boost
According to the company, they are expecting that consumers who have credit scores between 580 and 669 and with fewer than five trade lines should b the ones who benefit the most from Experian Boost. Nevertheless, they recommend that all consumers should use their online platform.
In case you are thinking about applying for a loan or a line of credit, you may benefit from this credit score boost. Besides, according to Experian Boost, their platform will also benefit consumers who are never rewarded in terms of their credit score by their good financial habits. This way, you should be able to easily qualify for auto loans, credit cards, among others.
Experian Boost Benefits
As you already know, it is extremely important that you have a good credit score. After all, you probably already know that your credit score may influence our ability to get a good loan rate, for example. However, there is also a wide range of benefits that most people tend to forget about and that are directly related to a high credit score. So, here are the main benefits of using Experian Boost to boost your credit score:
#1: Lower Security Deposits:
When you are looking for a new apartment, you know that you will have your credit checked. While some smaller companies may not require it, this is the rule for larger management companies. On the other hand, if you’re looking to lease an apartment, you can be sure that your future landlord will want to ensure that you have a good credit score.
In case he believes that there are some issues with your past as a borrower, he may require a more collateral. So, this means that you will need to make a bigger security deposit. In some cases, you may need to pay for 2 months of rent instead of just one. In addition, when you have a low credit score, you will have far fewer options for apartments to choose from.
Besides, this is just the beginning. The truth is that when you need to call the company that provides electricity, gas, water, and cable to your home, they may charge you more because of your low credit score.
#2: Lower Insurance Rates:
This is another benefit that most people tend to forget about. After all, credit scores have a huge influence on your insurance rates.
The reality is that when you have a good credit score, your insurance for your home or car may be reduced.
One of the things that you need to understand is that insurance companies have their own “insurance score”, which is different from your credit score. The insurance score is used by insurance companies to determine how likely it is that you will make a claim.
#3: Access To The Best Credit Cards:
When you have a good credit score, you will be able to qualify for credit cards that offer a lot of different perks. These include lower fees, purchase discounts, airline miles, cash back, among many others.
One of the main advantages of qualifying for such exclusive credit cards is that besides the fact that you get a lot of perks, you may also get a lower annual percentage rate (APR).
#4: Access The Best Cell Phone Deals:
If you like to have a high-end cell phone, then you know that you need to pay a high price. So, one of the things that you can do when you have a good credit score is that when you purchase your cell phone, you won’t need to make a high down payment. On the other hand, when you have a low credit score, you will be required to make a large down payment to buy the same cell phone. In addition, more and more companies keep hosting their best deals only for qualified customers. This term, qualified customers, imply customers with a good credit score.
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