If you want to boost your credit score, look no further than your monthly bills. Experian, one of the three largest credit reporting bureaus is helping consumers with low credit scores have a better shot at getting a loan or a credit card.
Experian Boostwill provide extra credit for utility and mobile phone bills that you’re already paying. Traditionally, these bills are only counted against consumers. With Experian Boost, customers who pay their monthly bills on time can use that information to improve their score.
A credit score calculates how likely you are to repay your loan on time. Companies that calculate credit scores use information found in your credit report. Factors used to calculate a credit score include whether or not you pay your bills on time, your credit utilization rate (how much of your available credit you use) and credit history. According to recent studies, credit scores in America are at an all-time high of 695, but many consumers still struggle with a low score which affects their ability to access a loan.
Just because a consumer doesn’t have a low credit score doesn’t mean they don’t face other challenges. According to Experian, approximately 62 million Americans have “thin credit files.” This means that there is insufficient information for a bank or lender to calculate their credit score. American consumers who have thin credit files include people who are young and new to the world of credit, immigrants, or consumers who haven’t used credit in a long time. It also includes recently widowed or divorced consumers.
Low credit scores and thin credit files affect consumers’ ability to get a credit card or to apply for a loan. If they do receive a loan, it is often at very high interest rates. Having the ability to boost that score is a huge benefit to consumers who simply don’t have the same access to loans or favorable loan terms. Experian claims that including bill payment information can boost a consumer’s score about two-thirds of the time. If in a rare instance, adding bill payment information lowers the score, a consumer may opt out of the service.
Maintaining a good bill payment history is critical for consumers who want to apply for a loan and receive good terms. If you’re drowning in high monthly bills, Billshark can help. We will lower your bills so that you’re not overpaying. Let the Sharks take a bite out of your bills!