Netflix Payments Can Boost Your Experian FICO® Score Instantly

Due to the COVID-19 outbreak, we’ve all been binge-watching Netflix. The streaming service has proven itself to be a lifeline for many people seeking ways to pass the time. There is even more advantage to being a Netflix subscriber. 

Can you guess what that is? 

It also helps boost your Experian FICO score. Netflix subscribers in the United States may now utilize their streaming payment history to improve their credit score. 

According to CNBC Select, Experian Boost is a free program that allows users to enhance their credit ratings by paying their monthly payments on time. 

And now, the service will allow customers to link their accounts to their on-time Netflix payment histories. Like paying other bills on time, Netflix’s payment history has the potential to improve its credit ratings.

What Is Experian Boost? 

Experian Boost is an unpaid, free service that allows you to update your credit report with on-time bill payments.

Experian Boost could only add utility and mobile phone payments to your credit history up until now. Netflix’s latest inclusion of payment history may be able to assist millions of individuals in establishing credit. In the first half of 2020, Netflix attracted a whopping 26 million paying customers.

Of course, making on-time Netflix payments will have little impact on your credit score. However, because credit scores impact your ability to receive cheaper interest rates, even a few points higher can cut your monthly expenditures.

How Does Experian Boost Work?

Experian Boost will check your bank account once you sign up to extract payments made to approved service providers. The information you wish to include in your Experian credit report is selected.

The benefit of Experian Boost is that it only considers good payment history; late payments will not be posted to your profile. Therefore they will not affect your Score.

You’ll have to give the information for the bank account or credit card you use to pay your Netflix, phone, or utility bills. That data will be kept confidential. After that, you select and confirm which bill history to include in your Experian credit report.

The site only collects payment records which will help you improve your credit. You can also request that your information be removed from your Experian credit report at any moment.

How Can You Sign-up For Experian Boost?

Here’s how to get started with Experian Boost to discover what it can do for your Score:

• Sign-up for the Experian Boost account — Experian will need your name and address to get started. After that, you’ll create an account with an email address and a password.
  
• Adding your bank account — Experian will go through your bank account transactions to see if there are any utilities, telephone bills, or Netflix payments that should be included in your credit history.
  
• Choose the Boost — Experian will inform you of any available payments for you to contribute. You choose which ones to be included in your report.
  
• Check the Boost of your Score — The Boost in Experian score might happen in a short time. Experian Boost is the cherry on top, and it’s a nice extra that might complement the rest of your credit-building approach.

Is Experian Bost Effective?

According to Experian, more than Four million Americans have linked their accounts. According to the bureau, the average rise after signing up for the program is 12 points. While the rise is not significant, it may push certain consumers into a lender’s higher credit tier to obtain loans at cheaper rates and conditions.

According to the Experian Boost Study, 60% of participants saw their credit scores improve, with an average increase of 12 points. However, the website warns that this isn’t always the case: “Some may not experience higher ratings or approval probabilities. Not all lenders utilize Experian Boost-affected credit data.”

You might inquire ahead of time about your creditor’s credit report and Score and whether they would take Experian Boost data. The credit score boost from this service may not benefit you much if the creditors review reports from TransUnion or Equifax.

Finally, don’t anticipate Experian Boost to improve your Experian credit score from bad to great. However, if you’re just a few points shy of being at the “fair” or “good” level, the service might be able to help you get over it.

Who Should Opt For Experian Boost?

People establishing or restoring credit may benefit the most from Experian Boost since it can help you get a head start. According to Experian, calculating a credit score after opening your first account might take three to six months. On the other hand, Experian Boost may add utilities, phone, or Netflix payments to your Experian credit file in real-time.

Unless they have some home expenses in their name, this is unlikely to be a credit-building shortcut for teens, students, or young people with a small credit history. You won’t be able to declare those payments as your own if you’re using someone else’s Netflix account.

People with bad credit who have been paying their bills on their own for years may get a boost by having their payments counted. Remember that Experian collects payment from your accounts, so if you pay your bill with a credit card, those charges will not be included in your Boost.

Final Word

Experian Boost now allows you to add your Netflix payment to increase your credit score. Allowing the program to check their bank account activities to detect streaming, utility, and mobile phone payments is required for consumers to utilize Boost. Payment information will show in their Experian credit report and will be used to construct certain credit ratings based on that data.

Consider utilizing Experian Boost to discover whether you can quickly increase your FICO® Score by paying Netflix, utility, or mobile phone bills via your bank account. While timely Netflix payments won’t enhance your credit score by 100 points, a few additional points might help you get better interest rates.

See whether you may obtain a credit score boost with Experian Boost, as it only reflects good payment history and is completely free.