Two Upcoming Innovative Ways to Boost Your Credit Score
Two credit reporting companies are working on adding new service features that could potentially boost your credit score. These features are still in the works, but we want to tell you about upcoming news in the financial realm so you can be aware of potential future changes. For the first time, consumers will be able to grant a credit scoring agency access to their online bank accounts to view their bill paying history. The credit repositories will turn this information into additional credit reporting data for risk analysis, which can translate into a higher credit score.
The first service is Experian Boost™, which uses data from your internet, utility, and cable bill payment history to potentially increase your credit score. These are bills you’re already paying but do not currently factor into your credit profile and credit scores. Experian Boost™ connects to the bank accounts you use to pay your bills. You then choose and verify the positive payment history you want to add to your credit profile. Experian Boost™ then uses that data to impact your FICO. Experian Boost™ uses FICO score 8 for their score tracking. There are many different credit risk scoring models available. According to Experian’s website, “many but not all lenders use FICO Score 8.”
The second service is UltraFICO™, which uses data from your checking and savings accounts to potentially increase your score. The data UltraFICO™ analyzes consists of the following elements in your bank account:
- Your evidence of savings
- Keeping a healthy average balance
- Maintaining a bank account over time
- Avoiding negative balances
- Regularly paying bills while making other bank transactions
Still in beta testing mode, nothing has gone live yet
As a reminder, both Experian Boost™ and UltraFICO™ are currently in development phases, and not available for widespread public implementation. You can sign up for free at both websites now. They’ll notify you when the score-boosting services are active and ready to use.
In the meantime, as a benefit of signing up, Experian Boost™ will tell you what their current records show for your credit score and your credit history. You’ll be able to review your credit score factors: positive and negative factors that impact your FICO score, such as payment history, amount of debt, credit history length, and more. They offer credit score tracking services as well, which will notify you when your FICO score changes. Experian will also provide pointers for how you could make changes now that might improve your credit risk profile before you use the boost services.
It’s important to note that since the score-boosting has not gone live, there is no way to determine the market reaction. Lenders may not use the same scoring models as Experian Boost™ and UltraFICO™. Lenders will always pull separate credit reports, so the scores you see online using these products may not reflect the credit score the lender uses for your financial application.
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