COSTA MESA, Calif. — Experian announced the launch of Experian Boost, a free online platform designed to allow 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, executives said, noting that 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, five-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.”
Experian Boost will be available to all credit-active adults in early 2019, according to the announcement.