Your Cell Phone Bill Could Help Boost Your Credit Score

Starting next year, Experian will let you boost your credit score with a simple new option. It announced this week that in January it will start Experian Boost, a free, optional service that lets consumers supplement their credit report with information about their history of paying utility, cable and cellphone bills. This is different from the new UltraFICO score that was announced earlier this year.

experian credit score boost cell phone

Experian Boost

Experian Boost and the extra information may help improve consumer credit scores, by showing on time payments for recurring bills such as cell phones and other services.

Credit reports usually include your history of paying credit card bills and loans but leave out cell phone bills and other similar payments, unless the accounts are delinquent. The new service will reward consumers who pay those bills on time.

There’s one catch though. You must have an online bank account, and give Experian access to it. Using Finicity, a financial technology firm, they will look through your statements and identify eligible payments. The system uses read-only access, so it cannot alter a user’s data. “Data security is our No. 1 priority,” Mr. Wright told NYT. Customers ca revoke access at any time, if they no longer wish to continue.

According to Experian, 46 million U.S. consumers have “thin” credit files, meaning less than five loans or other accounts. By using Experian Boost, those consumers could see their scores increase immediately after they link their bank accounts. And around 1.5 million consumers with no scores could receive a score.

Last year, Experian, Equifax and TransUnion announced a plan to change how negative information is handled on credit reports. They started removing tax-lien and civil-judgement data.

Good Credit Score

Having a good credit score should be the goal for everyone. Yes it helps you to get more credit cards and earn tons of miles and points, but it save you even more in the long run as you look to buy a car, a house, or get a loan. It even helps when you’re looking to rent or even get a new job.

Sometimes people believe myth such as that carrying a balance is a must for a good score. It’s good to stay informed and check your score regularly.

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8 thoughts on “Your Cell Phone Bill Could Help Boost Your Credit Score

  1. Wait, whaaaat? The one catch is you have to give these….. access to your bank account? It would be one thing if you had to give access only to the precise utility bill you wanted credit for, but giving them access to your checking account….? DoC, once again, I’m stunned by how cavalier your disposition seems to be about any such scheme. Nothing safe at all about this.

    Oh, but wait, we’ll be fed by wall street types (and “the motley fool” types) the same line we heard about facebook…. “what’s to worry about if you have nothing to hide?”

    If this promotion really requires giving a credit monitoring agency direct, unfettered access to your bank account(s), then there should be a hue and cry across the land condemning it…. (not web sites shilling for it)

    This has got 1994 written all over it. Oh, but wait, in the land of “STEM” education, nobody readys anymore.

    • ah, sorry Danny, thought I was reading this over at DoC…. In any case, I see most of your text comes straight from the NYT “business” report — which is every bit as shocking in how cavalier they gloss over the shocking way that low income consumers will be suckered into this…. by merely giving big brother direct access to their checking accounts. (just like bitmo…. only worse)

      • Bitmo is probably worse IMO, but yes you are giving away your personal info and privacy in both cases. Personally i will not give them my account info, but i do have good credit. If i didn’t i would think about it and maybe set up an account just for that reason and pay my relevant bills from there.

    • Its not about what you have to hide. Yes it’s a risk i think but nowadays your info will probably get hacked regardless whether at chase or experian. I look at it as an opportunity that comes wi risks. Nobody has to do it but if you need e better score for whatever reason you have this option. It’s not ideal but people that will need this boost are not ideal for banks either to extend them a loan.

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