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Experian Boost\\xae Score

Today we\\u2019re going to take an in-depth look at Experian Boost score,
One of the problems that FICO\\xae has had in the past with other versions of a new FICO\\xae score was trying to score people with a thin repository file. FICO\\xae was trying to create a reliable scoring model that used fewer data inputs.
The Experian Boost\\xae score is the first-time additional data has been used from a financial intuition to supplement the repository file. They\\u2019re connecting bank payment history into this repository file, looking for consistent payments to creditors. Experian Boost\\xae will be included in FICO 8 and FICO 9 credit scores

FICO\\xae has tried this in the past, they called it XP, they called it new FICO\\xae, many times over the years they\\u2019ve tried to create a FICO\\xae score using less information and it never worked. What\\u2019s different about this is that they are getting more information from financial institutions.

What Experian Boost\\xae is looking for is a series of payments to a creditor like a utility company or a cell phone provider, something that the consumer has set up to automatically pay or to pay through a bank account. Experian Boost\\xae is linking consumer accounts much like an online mortgage application or TurboTax, they\\u2019re interfacing with the consumer\\u2019s financial institutions. Creating a credit history based on past payments that the consumers have made and adding it to the Experian repository file.

I had made some payments out of my Bank of America account and when Experian Boost\\xae reviewed that information. it gave me a few more points now this is not designed for somebody with a long credit history is really designed for somebody with a thin credit history somebody who does not have a lot of credit.

The drawbacks from a lending perspective is that Experian Boost\\xae will not look at derogatory information. It looks at payment history in consumer\\u2019s bank accounts. In my specific situation, it found a few payments out of one of my accounts and added it to my repository file.

My DTE account added to my Experian\\xae Boost score; 19 payments, a utility, average payment amount, then it calculates my score new score. In this situation, my score happened to go up, a few points from the boost.
Experian Boost\\xae will improve both FICO 8 and FICO 9 scores if your financial institution uses one of those scoring models then it could help you get a better rate on some financing.

If a consumer is planning to apply for a mortgage Fannie and Freddie do not accept any other credit score other than FICO5 score. The Experian Boost\\xae score will not impact a consumer\\u2019s mortgage credit score. Right now, Fannie and Freddie still require FICO5

I\\u2019ll be at the Building Community Conference in Lansing speaking about all the latest developments in credit scoring.