Does experian boost help with mortgage - tradeprofinances.com

Does experian boost help with mortgage

## Experian Boost: Understanding Its Mortgage Impact

Experian Boost is a free service offered by Experian, one of the three major credit bureaus. It allows consumers to add certain types of bills and other payments to their credit report, potentially improving their credit score. But does Experian Boost help with mortgage applications?

### The Basics of Experian Boost

Experian Boost works by adding non-traditional payment data to your credit report. This data includes:

* **Utility bills (electricity, gas, water)**
* **Telecom bills (phone, internet)**
* **Streaming service subscriptions (Netflix, Spotify)**
* **Rent or mortgage payments (if not already reported on your credit report)**

By adding these payments to your report, Experian Boost aims to provide a more complete picture of your financial responsibility.

### Mortgage Lenders and Experian Boost

Mortgage lenders typically use the FICO score to evaluate borrowers’ creditworthiness. FICO scores are based on information from credit reports from all three credit bureaus (Experian, Equifax, and TransUnion).

While Experian Boost does not directly impact your FICO score, it can potentially improve your Experian credit score. This is because Experian Boost data is included in Experian’s VantageScore model, which some lenders use in addition to FICO scores.

**Note:** Not all mortgage lenders use the VantageScore model. It is important to check with your specific lender to determine if they consider Experian Boost data.

### Benefits of Experian Boost for Mortgage Applications

If a mortgage lender uses the VantageScore model, Experian Boost could potentially provide the following benefits for mortgage applications:

* **Improved credit score:** By adding positive payment data to your report, Experian Boost can potentially increase your VantageScore, making you a more attractive candidate for a mortgage.
* **Preapproval:** A higher credit score may allow you to qualify for preapproval, which can strengthen your negotiating position when purchasing a home.
* **Lower interest rates:** A higher credit score can translate into lower mortgage interest rates, saving you money over the life of your loan.

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### Limitations of Experian Boost for Mortgage Applications

While Experian Boost can be beneficial for mortgage applications, it is important to note its limitations:

* **Not all lenders use the VantageScore model:** Many mortgage lenders still primarily use the FICO score, which does not incorporate Experian Boost data.
* **Limited types of payments:** Experian Boost only includes certain types of payments, such as bills and subscriptions. Other types of payments, such as credit card debt and loans, are not included.
* **No guarantee of approval:** Even if Experian Boost improves your credit score, it does not guarantee mortgage approval. Lenders consider a variety of factors, including income, debt-to-income ratio, and property value.

### How to Use Experian Boost

To use Experian Boost, you can:

1. Visit the Experian Boost website.
2. Create an account or log in to your existing account.
3. Link your bank account to Experian.
4. Select the bills and payments you want to add to your credit report.
5. Review and confirm the information.

Your Experian Boost data will typically be updated within 24 hours.

### Conclusion

Experian Boost can potentially help with mortgage applications by improving your VantageScore. However, it is important to remember that not all mortgage lenders use the VantageScore model and that Experian Boost has limitations. Before relying on Experian Boost for mortgage applications, check with your specific lender to determine if they consider Experian Boost data.