Think twice before you "Boost" your FICO Score.

[AndrewF]

Credit-report sites (Experian Boost, Credit Karma, etc.) offer to scan your bank account to add things like rent or utility payments to your file, supposedly to “boost” your FICO—but there are several risks and limitations:

According to some users, these tools can be buggy and can sometimes lower your score (e.g., only adding a few recent payments or treating it like a new account).

Most lenders still use FICO 8 or older, which don’t count rent/Netflix/electric and gas payments; mortgage lenders use older mortgage-specific models (2–5). FICO 9/10 adoption is rare.

Any boost you see probably will not matter to most lenders.

The real reason these services want bank access is data: read-only access aside, they collect and can sell detailed financial data (advertisers, banks, maybe creepy companies like Facebook/Meta etc.)—that’s how the services stay “free.” Even if you can assume that the bank connection is secure and that the Boosted score provider won't have a data breach, consider why they "do it for free".

These tools target people with poor or no credit; paying small subscriptions like Netflix and Verizon won’t outweigh unpaid debts in a lender’s decision. If you have collections, charge offs, a bankruptcy, etc. elsewhere, they don't care that you pay Netflix and Verizon, in fact, it may show them that you're out there getting a $150 a month cell phone and paying for Netflix while you are letting important bills become delinquent.

In other words, it may paint an even worse narrative. How is a lendor or a landlord going to view paying Netflix and Spotify if you're not paying Capital One and the hospital?

When I tried to get to the sign up screen for TransUnion reporting through Credit Karma, it told me my TransUnion score (675 FICO 8) was too high for this "boost" to matter, and that I couldn't sign up.

Bottom line: weigh the small, model-dependent upside against buggy behavior and the privacy/data-sale tradeoffs.

[pizzadude]

Moved to Understanding FICO Scoring

[BrutalBodyShots]

"Boost" is a gimmick, as no lender goes by a "boosted" score. Like most gimmick credit products, they prey upon the ignorant that don't know any better. I think it's great to spread the word that products such as this should be avoided.

[Realist]

Use these tools for what they were initially designed to do, tools that provide information about a credit score, provide hard inquiry status, loan amounts, credit card information, etc.  Status quo information.  Don't go with the extras.  The experimentals.  The gimmicks.  It's a tool only - and should be used as information only.

This is no different than with auto insurance.  You are quoted one way, status quo for nearly all insurance providers.  That is your price, accept, deny, go get requoted elsewhere.  Next, the industry provides a gimmick in which tracks your driving habits.  Braking, accelerating, how you use your phone, etc.  They promise you a reduction in rates by agreeing to this monitoring, but then suddenly, they now have ammo to use against you in future rate pricing.  Do you brake hard all the time?  Do you use your phone to text and drive?  Are you a lead foot off the line.  Etc.  Suddenly, that savings you thought that could help you, wasn't a savings at all, but it instead exposed your driving habits in which always went under the radar.  It now exposes you to higher insurance rates based upon your driving habits.  And yes, while this is completely individual, some or many are getting screwed over by this technology in which they thought would help them.   That was advertised to help them.   

Stick to the basics.  Tell the extras to stick it.  Keep some of the extras information to yourself, for your own benefit.  Anything you expose, can and will be used against you.

[JamesS84]

Interesting, thanks. Curious, though - what led to you posting this? Just the Karma incident? And is there really any harm in doing it if the company doesn’t report negative info? I report my rent and utilities via WalletHub, and it seems to be helping so far.

[BrutalBodyShots]

Yes, @JamesS84, there is harm as you are allowing additional mining of your personal information.

[hdporter]

The warning about Boost feels like shades of "the sky is falling".

That said, Boost is a very marginal enhancement ... meaning that 98% of borrowers fall outside of the narrow group who can benefit:  the credit inexperienced, with no adverse history.

Experian Boost is a potential enhancement to a FICO 8 score, factoring such non-traditional reporting sources such as utility payments.

A significant "boost" will only be realized by those otherwise having a thin file.  Someone with 2 years of credit experience, from at least 3 credit providers, would be unlikely to see much score impact from boost.

Those who have adverse credit history are unlikely to receive a benefit from boost.

For those who have very short credit histories, or none at all, Boost can lift their Experian FICO 8.  I would be extremely loathe to suggest such a candidate shy away from Boost.

[1lifeisworthit]

Experian, being one of the actual credit bureaus, should be deeply ashamed of themselves for doing this.

Other organizations are gonna be what they are. But Experian should be held to a higher standard than this scammery.

[DXness]

---

@hdporter wrote:

The warning about Boost feels like shades of "the sky is falling".

That said, Boost is a very marginal enhancement ... meaning that 98% of borrowers fall outside of the narrow group who can benefit:  the credit inexperienced, with no adverse history.

Experian Boost is a potential enhancement to a FICO 8 score, factoring such non-traditional reporting sources such as utility payments.

A significant "boost" will only be realized by those otherwise having a thin file.  Someone with 2 years of credit experience, from at least 3 credit providers, would be unlikely to see much score impact from boost.

Those who have adverse credit history are unlikely to receive a benefit from boost.

For those who have very short credit histories, or none at all, Boost can lift their Experian FICO 8.  I would be extremely loathe to suggest such a candidate shy away from Boost.

---

The warnings sound like the sky is falling because "Experian Boost" is a deceptive product that does NOT boost a standard FICO 8 score.  The boosted score is a separate score entirely, think "FICO 8 Standard" vs "FICO 8 Boosted".  Many lenders use "FICO 8 Standard" for credit decisions and no lender uses "FICO 8 Boosted". 

Therefore, there is not a single person who can benefit from using Boost...except Experian executives who get to sell the data.  Thin file, credit inexperienced does not matter - it is not a score anyone uses.

So, I am quite happy to steer anyone and everyone away from using Experian Boost.  It only exists so they can sell your data with no acquisition costs.

[BrutalBodyShots]

Right on, @DXness.