Does Experian Boost really work?

If you check your credit score regularly, you’ll know about Experian. But do you know about Experian Boost? Read this article to find out.

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Woman kissing laptop

Image source: Getty Images

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

If you have ever checked your credit score, then you probably already know about Experian. But have you heard about Experian Boost? Let’s take a look at what it is and how it can help to improve your credit score.

What is Experian Boost?

It’s a new service from Experian launched in the UK in November. It allows you to share information about your regular payments to specific service providers and accounts.

If you make these regular payments and spend less than you earn, you could be rewarded with an instant boost to your credit score.

How does it work?

You need to sign up for the service, which is free to use.

As part of the process, you give permission for Experian to access the last 12 months of your bank account data. This is done in accordance with ‘Open Banking’ rules.

Experian Boost uses this data to obtain an up-to-date picture of your spending habits. If you regularly pay your bills on time and spend within your means, Experian will use this to boost your credit score.

What types of payments will be counted?

The service counts three types of payment:

  • Council Tax payments

  • Digital entertainment subscriptions – including payments for services such as Netflix, Spotify and/or Amazon Prime

  • Payments into savings accounts – including ISAs

The service also monitors the total amount paid into and withdrawn from your account.

Experian Boost does not monitor other transactions, such as credit cards. However, transactions such as credit card payments are already accounted for when you check your normal credit score. So this service should be treated as an additional extra.

Who will benefit from this service?

Anyone that wants to improve their credit score or anyone with a non-existent credit history.

If you already have a good credit score then it’s unlikely that you’ll benefit.

What are the pros and cons of using this service?

Using Experian Boost will not damage your credit score. It ignores any information that could negatively affect your score and won’t share this information with other financial companies.

However, the service is still quite new, and some financial companies have not yet confirmed that they will take this information into account when making an assessment.

You will only fully benefit if your household bills are paid out of your account. So, if you are living in shared accommodation where someone else pays all the bills, you won’t get as much out of the service.

You need to be comfortable with Experian accessing your bank account. While this could put some people off, access will be for up to 90 days. After this time, you can withdraw permission. You can also choose to stop the service at any time.

How quickly will I see the results?

Experian claims that the application process takes about five minutes and you should see an instant change to your credit score.

If you want to use this service, it is probably best to use it as part of a longer-term strategy to improve your credit score. Building and maintaining a good credit score takes time and patience.

At this point in time, it is difficult to assess just how quickly Experian Boost will truly influence your credit score.

Take home

Experian Boost is a relatively new service, so its positive effect on a credit score is difficult to assess.

It might be worth waiting at least until more financial institutions start to recognise these scores as part of their assessment of your credit history before trying it out.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

More on Personal Finance

Note paper with question mark on orange background
Personal Finance

Should you invest your ISA in a model portfolio?

Which model ISA portfolios offer both high performance and low fees? Hargreaves Lansdown, Interactive Investor and AJ Bell go under…

Read more »

Economic Uncertainty Ahead Sign With Stormy Background
Personal Finance

Is it time to exit emerging markets investments?

Investors may well be sitting on losses from emerging markets funds. Is it worth keeping the faith for a sustained…

Read more »

Personal Finance

Share trading? Three shares with turnaround potential

Share trading has been difficult in 2022, but which companies have turnaround potential? Jo Groves takes a closer look at…

Read more »

Man using credit card and smartphone for purchasing goods online.
Personal Finance

Revealed! Why Gen Z may be the savviest generation when it comes to credit cards

New research reveals that Gen Z may be the most astute when it comes to credit cards. But why? And…

Read more »

Environmental technology concept.
Personal Finance

The 10 best-performing sectors for ISA investors

The best-performing sectors over the past year invested in real assets such as infrastructure, but is this trend set to…

Read more »

Road sign warning of a risk ahead
Personal Finance

Recession risk ‘on the rise’: is it time for investors to worry?

A major global bank has suggested the risk of a recession in the UK is 'on the rise'. So, should…

Read more »

pensive bearded business man sitting on chair looking out of the window
Personal Finance

1 in 4 cutting back on investments amid cost of living crisis

New research shows one in four investors have cut back on their investing contributions to cope with the rising cost…

Read more »

Image of person checking their shares portfolio on mobile phone and computer
Personal Finance

The 10 most popular stocks among UK investors so far this year

As the new tax year kicks off, here's a look at some of the most popular stocks among UK investors…

Read more »