Experian to give consumers input into their credit scores
COSTA MESA, Calif. – Dec. 18, 2018 – Experian, one of the main three U.S. credit-scoring companies, says its new program, Experian Boost, "will reshape the way consumers get access to credit" by allowing them 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.
"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," says Experian Global CEO Brian Cassin.
Consumers with thin credit files (less than five trade lines) and scores between 580 to 669 will benefit most.
Experian says that an early analysis of Experian Boost's impact on FICO Scores found:
- The risk predictiveness of the score was maintained
- Two out of three credit scores improved
- 10 percent of thin-file consumers became scoreable
- For consumers with a score below 680, 75 percent saw an improvement in their credit score
- 14 percent 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 percent moved into a better score category
According to Credit Builders Alliance, a subprime credit score will cost the average consumer approximately $200,000 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.
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 a consumer can use Experian Boost to contribute new data. Consumer contributed payment histories will be compiled through Finicity, a provider of real-time financial data aggregation and insights.
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.
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