Experian Boost Lets You Use Netflix Payments to Improve Your Credit Score
Experian Boost is a new service launched in 2019 that helps some people improve 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 most bills and other similar payments, unless the accounts are delinquent.
So far, approximately four million consumers have connected their utility and telecom bills to Experian Boost, leading to more than 29 million points added to FICO® Scores nationwide. On average, users see a 13-point increase in their FICO® Score 8, based on Experian data.
Now Experian is adding a new option to include in your Experian Boost score. Netflix customers can possibly improve their FICO® Score by adding their positive payment history through Experian Boost. It already allows consumers to receive credit for paying their cable bills, so paying for a video streaming service is something similar and paying it timely every month could add a few points on your score.
While Experian Boost is a good idea for some people, it has a downside and eventually might not make a huge difference. For Experian Boost to get the data it needs, you have to connect the bank account you use to pay your bills. This means giving up some of your privacy. Also this service doesn’t affect your credit score with the other two credit bureaus, Equifax and TransUnion. When you apply for a credit card or a loan, most intuitions will pull from more than one bureau.
This is a good option to keep in mind, if you need a small bump in your credit score. A good credit score should be the goal for everyone. It helps you to get more credit cards and earn tons of miles and points, but it saves you even more in the long run as you look to buy a car, a house, or get a loan. It is now often required for renting a new apartment or even get a new job. Sometimes people believe myths such as that carrying a balance is a must for a good credit score. Stay informed, check your score regularly and develop good financial habits. Just paying Netflix on time will not do the trick.