Experian Boost review 2024: Is it worth it?

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It’s the classic credit catch-22: You often need credit to build credit. And if you don’t have a low credit score or no credit history, it can be harder to prove to lenders that you’re worth lending to.

Experian Boost tries to solve this problem by including payments for things not typically included in your credit score. This includes utility bills, streaming services, rent, and more.

Reporting positive payments on these bills can help show you pay your bills on time, potentially boosting your credit score. Here’s what you need to know about Experian Boost — and if it’s worth it.

What is Experian Boost?

Experian Boost is a free service from one of the three major credit bureaus. Credit scores are typically based on credit cards, mortgages, and other loan payments. This doesn’t always capture someone’s responsible financial behavior.

That’s where Experian Boost comes in. You can use Experian Boost to raise your credit score by adding on-time payments for your rent, insurance, streaming services, and utility bills.

How does Experian Boost work?

Getting set up with Experian Boost is a simple process.

You connect the Experian app to your bank accounts and identify which accounts you want added to your credit file. Experian then verifies the payment history on those accounts each month when you log in.

Experian Boost scans the last two years of your banking history and considers recurring bills made at least three times in the last six months (or once in the last three months). This includes bills like:

• Utilities (including water, electricity, gas)
• Telecom (including internet and cable)
• Insurance
• Mobile and landline phone
• Rent
• Video streaming services

Any on-time payments are added to your credit report and can boost your score. Missed or late payments won’t be added or have any negative impact.

Despite this, there are a few limitations to what you can use and how it works. For instance, rent payments qualify as long as they are made to select property management companies or rent payment platforms. If you pay your rent through apps like Venmo or Zelle, those payments aren’t eligible. Rent doesn’t count if you have an active mortgage, either.

Health insurance payments also don’t qualify for Experian Boost, though other types of insurance — home, auto, renters — do.

Lastly, some banks don’t support Experian Boost, so you may have trouble connecting all your accounts to the platform.

Does Experian Boost increase your credit score?

Yes, using Experian Boost can increase your credit score. Experian claims users typically see an increase of up to 13 points, but individual boosts will vary depending on your credit profile.

Remember that other credit bureaus might not reflect the same changes since this is strictly used by Experian. But you can show a higher score for credit issuers and lenders that pull your Experian credit report, even though it’s only with one bureau.

Drawbacks to using Experian Boost

While there are some clear advantages to using Experian Boost, there are some drawbacks to consider.

If you already have a strong credit score, Experian Boost likely isn’t going to offer much of a benefit. Those with solid credit likely already use credit cards and pay them off on time each month — so adding a few more on-time payments isn’t doing much.

Next, because Experian Boost solely looks at your transactions, it only reports your payment history. Remember, your credit score comprises more than payment history — it also includes credit utilization, new credit, credit mix, and credit age.

It’s true that payment history is the most important factor in your FICO score, but it’s not the only one. Experian Boost should be one tool to boost your score and responsibly open and use additional lines of credit.

Lastly, since Experian offers this service, you won’t see your new score reflected with other major credit bureaus, such as Transunion and Equifax. If potential creditors and lenders check your score and history and they don’t use Experian, you may not qualify for new credit with them.

Should you use Experian Boost?

Experian Boost tends to provide the most benefit for those new to credit or rebuilding credit. Those with established excellent credit likely won't see any benefit (or little benefit)

The additional positive payments can help establish a positive credit history and responsible payment habits for someone with an ultra-thin credit file and limited credit history. Both are critical factors in FICO credit scoring models.

Those recovering from financial difficulties and working to rebuild damaged credit can also benefit from Experian Boost. The added on-time payments help counteract any late payments on your credit accounts.

You should use Experian Boost if:

• You have poor credit or a limited credit history
• You rarely or never use credit cards or other lines of credit
• You have bills in your name that qualify, like cell phone payments, rent, and utilities
• You don’t have a mortgage and can add qualifying rent payments

You may want to skip Experian Boost if:

• You already have good or excellent credit
• You’re a heavy credit card user with a solid credit history
• You have a habit of making on-time payments each month
• You don’t have bills in your name that would qualify

The bottom line

Experian Boost can be a lifeline for folks who don’t have much credit to prove their creditworthiness. If you’re struggling to start (or restart) your credit journey and need extra help proving yourself, Experian Boost is a good way to do so.

But if you already have decent credit, you may not need Experian Boost for the extra help. Instead, you may consider lowering your credit utilization or expanding your credit mix. It’s equally important to make on-time payments on the cards and loans you already have.

Editorial disclaimer: Opinions expressed are author's alone, not those of any bank, credit card issuer, or other entity. This content has not been reviewed, approved, or otherwise endorsed by any of the entities included in the post.