Consumer credit reporting company Experian has just launched Experian Boost, a free way for you to improve your credit score instantly.
All you have to do is sign up for a free Experian account, and then connect your current account with the service – your bank has to support something known as Open Banking though, and most major players do.
Experian will then scan your account for deposits and expenditure to build up a more accurate picture of your income and spending.
There are a few spending areas that it will look for, including payments into savings and investment accounts, council tax payments, as well as subscriptions to services such as Netflix, Spotify and Amazon Prime.
Basically, it’s looking for evidence that shows you’re spending within your means each month.
What it means for you…
For most people, having a good credit score is essential for getting a mortgage – but lenders will take your score into considerations for any kind of borrowing, whether it’s a new credit card or a personal loan.
Traditionally, having a credit card that you pay off in full each month is seen as a good way to build up your score – but not everyone wants to get one or can get one that suits them.
Experian Boost is a way to improve the odds without any additional spending – for some, it can be a key step in getting on the credit ladder.
However, it’s worth bearing in mind that your credit score can go up as well as down – using the service doesn’t automatically mean a boost to your ratings. Lenders will also be able to see your boosted score so will take that into consideration for their lending decision.
Plus, Experian is just one of several credit ratings companies that lenders use so having a good score on Experian doesn’t automatically mean better access to better loans or credit cards.
Still, if your credit score is middling to poor, it’s worth signing up for a free account to see where you could improve.