If you have little to no credit history or a low credit score, you likely have trouble getting approved for loans and credit cards. If you want to bump up your credit score, Experian Boost may help.

Offered by Experian, one of the three major credit bureaus in the United States, Experian Boost is a first-of-its kind innovation that may help enhance your credit score to help you get the credit you need, when you need it.

Read on to learn everything you need to know about this credit-building tool.

What is Experian Boost?

Launched in 2019 by credit bureau Experian, Experian Boost is a free and user-friendly credit building service that allows you to report some bill payments to quickly build credit and/or improve your credit score.

Until recently, paying your bills on time didn’t have an impact on your credit file. You could pay your utilities and Netflix bill on time for years and still not have good credit. If you have a low credit score (or no score at all), you’re more than likely to get passed over when applying for a new credit card, mortgage or car loan with an affordable interest rate.

Thanks to Experian Boost, your history of on-time bill payments can now be included on your Experian credit report to build a positive payment history and launch your credit score to new heights.

How does Experian Boost work?

Experian Boost works by connecting your bank accounts to your Experian credit file and adding your positive payment history to boost your credit score. The process is simple and doesn’t take much time.

1. Sign up for Experian Boost and connect your bank account(s) you use to pay bills. You can add more than one account from the same bank and accounts from different banks.
2. Experian Boost will scan your banking transactions to identify qualifying bills (e.g., utility, cell phone, streaming services).
3. Verify and choose the positive payment history you want added to your Experian credit file
4. This data is used to calculate (and improve!) your FICO credit score instantly

You can link payment history as far back as 2 years (24 months). Late payments are not included in the report and will not have an impact on your credit score.

Bills that are eligible for Experian Boost include:

• Utilities: gas, electric, water
• Sanitation (trash)
• Cable and internet
• Phone
• Streaming services: Netflix, Disney+, HBO, HBO Max, and Hulu

Most major communications and utility companies are recognized by Experian Boost, but if a qualifying bill isn’t showing up on your report, you can contact Experian to request the service is added.

In addition to giving your credit score a boost, Experian will send you your Experian credit report and FICO score every 30 days. You’ll also get alerts for any updates made to your credit report, such as new account openings, balance updates, and new queries.

Does Experian Boost Work?

In short: yes. According to Experian, Boost has helped more than 3.9 million users increase their FICO scores. 60% of users have seen their FICO score increase by 12 points, on average.

Exactly how much Experian Boost improves your credit rating depends on your existing credit history. If you already have a good credit score, you’re not likely to see a big change after using Boost.

If you have limited or no credit history, you may notice a big jump in your credit score. According to Experian, Boost is especially beneficial to those who have a “thin file” (less than 5 credit accounts on their report).

Those with a “poor” credit rating have the most to gain. 87% of those with a poor credit rating increased their scores by 22 points, on average, using Boost.

It’s important to remember that Experian Boost only works to improve your Experian credit score and report. The other two major credit bureaus, TransUnion and Equifax, do not take Boost data into consideration when creating credit reports. So if you apply for a mortgage, for example, and the lender pulls your Equifax report, Experian Boost data won’t help you get approved for the loan.

On the upside, Experian boost data does apply to most credit scoring models, including the FICO Score, which is most often and other specific scores, such as FICO Auto Scores.

Who should sign up for Experian Boost?

Anyone can use Experian Boost, but certain people will benefit the most, such as those who:

• Have a “thin” credit file — those with five or fewer accounts
• Have very poor to fair credit scores
• Are new to credit — a short credit history of 2 years or less
• Have a credit score just below the next, higher tier — Boost may increase your score by 10-30 points and push you into the higher tier immediately

With a higher credit score and more robust credit report, your chances of being approved for a loan or credit improves and you may be offered a better interest rate.

It’s important to note that you must have at least one active credit account, like a loan or credit card, to use Experian Boost. The service is not for individuals who have no credit files.

How to sign up for Experian Boost

Signing up for Experian Boost is quick and easy:

• Visit the Experian Boost website and create an account online — you can also do this through the Experian mobile app.
• Enter your personal information, including your name, address, the last 4 digits of your Social Security number and your contact details. You may be prompted to answer security questions to confirm your identity.
• Connect your bank accounts and/or credit cards you use to pay bills.
• Choose and verify the bill payments you want to include in your report. Include any bills you have with a history of 3+ months of payments.

You can use Experian boost for as long as you’d like and can opt-out at any time with no penalties.

Other ways to build credit

Experian Boost isn’t the only way to improve your credit score (though it is the quickest!). These actions will improve your credit score with all three major credit bureaus.

• Apply for a secured credit card. This option is ideal for those who have no credit history/file. Put down a deposit (typically the amount that will become your credit limit on the card), make small purchases on the card, and pay them off each month. Your payments will be reported to the credit bureaus and build your credit report and score and your deposit will be refunded within 6 months to a year.
• Become an authorized user. A trusted friend or family member with a good credit score and responsible payment history can add you to their credit line to help you build your credit.
• Apply for a credit-builder loan. The lender will deposit the loan funds into a bank account. You will make monthly payments to the lender that get reported to credit bureaus. When the loan is paid off, the money will be transferred to your bank account.
• Rent-reporting service. Some companies will report your on-time rent payments to credit bureaus. These companies typically charge an enrollment fee and a small monthly fee. Your rent history will then be used to build your credit file.