Experian to Help Consumers Instantly Build Credit Score

Experian has launched a revolutionary free service called “Experian Boost” which claims to instantly improve your credit score with Experian.

What is Experian boost?

‘Experian Boost’ is an innovative and totally free service that helps you elevate your credit score by taking into account your:

• regular payments for Council tax;
• payments to entertainment subscription services;
• savings and investments

This is collectively known as your ‘open banking data’ which will be assessed over the last 12 months.  In addition, checks will be made to ensure your income exceeds your expenditure.

What affects your credit score with Experian now includes payments to modern entertainment subscription services like Spotify, Amazon Prime and Netflix. This contemporary credit rating tool could particularly benefit credit reports and scores for Spotify-loving ‘Generation Z’ or Netflix binge-watching ‘Millennials’.

Does it really work?

A successful pilot of the new service in America revealed “two-thirds of consumers saw an improvement to their FICO Score” and early analysis indicates over 51% of users will receive “an instant increase to their Experian Credit Score.” 

Experian further predicts that consumers with “credit scores between 580 to 699 are projected to benefit the most from Experian Boost” and the service could potentially increase credit scores by up to 66 points.

Clive Lawson, the Managing Director of Experian’s Consumer Services, said: “Experian wants people to get credit where credit is due. We are always pushing the boundaries of innovation for two key reasons – to give consumers more control over their financial lives, and to ensure lenders have the information they need to make informed, responsible decisions. There’s never been a more important time for people to engage with their credit scores and Experian Boost will help them to do this. We are incredibly excited to provide this ground-breaking, free service now to help build better financial futures for consumers in the UK.”

MoneyComms’ personal finance expert, Andrew Hagger, additionally commented: "I’m sure many customers will welcome the opportunity to boost their credit score in the current difficult financial climate.

“The Experian Boost service is an excellent example of how open banking can deliver tangible rewards for consumers. The potential financial benefits of this new initiative could see some customers having access to more favourable interest rate terms and improved credit limits.

“It’s refreshing to see this new partnership between Experian and key UK lenders and I hope it sets a precedent for the wider credit score industry”.

Read more: How Will Covid-19 Impact Credit Scores?

What is a Credit Score?

A credit score is a number consisting of three digits that lenders use to assess an applicant’s financial status and creditworthiness.  Your credit score will also be checked when you apply for insurance or use an insurance price comparison site.

If you have a good credit score then you’re more likely to be offered a loan, credit card, overdraft facility, mortgage or mobile phone contract. A credit score can also affect how much money you can borrow or the rate of interest you pay on a loan.

Different credit reference agencies provide different credit scores, the three main UK credit reference agencies being Experian, Equifax and TransUnion. Not all lenders use or report to all three credit reference agencies and so this is why your credit score can differ between agencies.

Learn more: What Affects Your Credit Score?

What is a good credit score with Experian?

Experian considers a ‘good’ credit score to be between 881 and 960, with ‘fair’ or average between 721 and 880. Anything below 721 is considered ‘poor’, and the maximum score you can achieve with Experian is 999.

The table below shows all of Experian’s credit score bands:

Can you check your credit score with Experian for free?

Experian’s credit score checking service is completely free of charge, as is Experian Boost. Alternatively, you can check your credit score for free with all the main credit agencies in one place, namely Equifax, Experian, TransUnion and Crediva, via checkmyfile.com.

This gives you a more detailed report than anywhere else, and you can easily identify and rectify any differing information between agencies that may be affecting your score.

Related guides

• UK Credit Scoring Explained

• How to Build Your Credit Score with a Credit Card

• Why Has My Credit Score Gone Down?