Consumers Now Have Opportunity to Raise Credit Scores Instantly by Adding Data to Their Experian Credit Report
In a move that will reshape the way consumers get access to credit, Experian®, the world’s leading information services company, announced it will launch Experian Boost, a free, groundbreaking online platform that allows consumers to instantly influence their credit scores.
Through the new platform, consumers can grant permission for Experian Boost to connect to their online bank accounts to identify and access utility and telecommunications payments. After a consumer verifies the data and confirms they want it added to their Experian credit file, an updated FICO ® Score is delivered 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.”
Consumers with thin credit files (less than five trade lines) and scores between 580 to 669 will benefit the most from Experian Boost. Early analysis of Experian Boost’s impact on a sample of consumer FICO ® Scores showed:
- The risk predictiveness of the score was maintained
- Two out of three credit scores improved
- 10% of thin-file consumers became scoreable
- For consumers with a score below 680, 75% saw an improvement in their credit score
- 14% of consumers with a credit score at or below 579 moved to a near prime score between 620 – 679
- Depending on credit tier, 5-15% moved into a better score category
The potential impact is significant as consumers with low or subprime credit scores often face higher interest rates when trying to gain access to credit. According to Credit Builders Alliance, having a subprime credit score will cost the average consumer approximately $200,000 more over the course of their life. For example, a consumer with a FICO ® Score of 720 will pay $4,020 less for a $10,000, 5-year auto loan – saving $67 a month compared to someone with a score of 500.
“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.”
Contributing consumer payment history to an Experian credit file will allow lenders to make more informed decisions when examining prospective borrowers. Only positive payment histories will be aggregated through the platform and consumers can remove the new data at any time. There is no limit to how many times one can use Experian Boost to contribute new data. Consumer contributed payment histories will be compiled through Finicity, a leading provider of real-time financial data aggregation and insights.
“Experian is a true pioneer in giving consumers control that could immediately impact their credit scores,” said Cassin. “Experian Boost marks our next step in delivering the most innovative and consumer-centric solutions, supporting our mission to be the consumer’s bureau and bringing lenders and borrowers together more efficiently than ever before.”
Experian Boost will be available to all credit active adults in early 2019, but consumers can visit www.experian.com/boost now to register for early access. By signing up for a free Experian membership, consumers will receive a free credit report and FICO ® Score immediately, and will be one of the first to experience Experian Boost.
Experian Boost will apply to many of the leading consumer credit scores used by lenders. To learn more about the platform visit www.experian.com/boost.