Just like your GPA was a measure of how well you did in school, your credit score is a measure of how well you do with loans and borrowing. Credit scores traditionally focused only on borrowing activity, such as credit cards, student loans, auto loans and mortgages. Starting today, however, your Netflix account can help you improve your credit score.
The popular Experian Boost™ product can help to improve your credit score by factoring in utility bills and other monthly charges on your credit report. Starting on July 27, 2020, that can include your Netflix account. Keep reading to learn more about how Experian Boost works and how you can boost your credit score with Netflix.
How Credit Scores Work
Your credit score is a number from 300 to 850 which tells lenders and other companies how likely you are to default on a loan. A high credit score signals a low risk to lenders while a low score indicates you are likely to be late or miss payments.
The popular FICO® Credit Score and VantageScore models use slightly different scales to measure your payment history, amounts owed, length of credit history, mix of credit accounts, and recent credit applications to determine your credit score.
The two biggest factors in your credit score are on your on-time payment history and credit balances. Those make up more than half of your credit score. If you focus on these two areas alone and try to avoid tinkering elsewhere on your credit report, you should see your score rise in the long-term.
What Is Experian Boost™
Until Experian Boost came around, most credit reports were limited to just borrowing-account data. That means credit cards, student loans, personal loans, mortgages, auto loans, lines of credit, and other accounts where you borrow money from someone else. Now, with Experian Boost, some other types of accounts can be included.
For example, you may be able to add your utility bill or telecom bill to your credit report with Experian Boost. That means you’ll get credit for an on-time payment for paying your power bill, gas bill, water bill, phone bill or cable bill.
In the past, you had to borrow to build a credit score. Now, with Experian Boost, you can build your credit score by making on-time payments with accounts you likely already have. That can help you get approved for a new account save money on future borrowing by qualifying for a better interest rate. As long as you always pay those bills on time, this free service could help to improve your credit score.
In addition to credit building features, Experian Boost offers more tools and goodies including the ability to scan the dark web for your personal information, an important protection against identity theft.
Experian Boost™ Adds Netflix to Your Credit Report
Netflix accounts can be included with Experian Boost. If you’re a long-time Netflix user, paying your Netflix account balance every month can count as an on-time payment on your credit report.
I signed up for Netflix in August 2008. In nearly 12 years, I could have built up a chain of 143 on-time payments had Experian Boost been around since the beginning. That would almost certainly have benefited my credit score.
But starting today, that’s exactly how it works. Sign up for Experian Boost to add Netflix to your Experian credit report. According to Experian, more than four million people have connected utility and telecom accounts so far with an average 13-point increase to their credit score. It is completely free to use.
Take Control of Your Credit Score to Join the 800+ Club
A higher credit score can help you get approved for the best travel and cash back rewards cards. When applying for a big loan like a mortgage, the lower interest rate you could get with a good credit score can save you tens of thousands of dollars or more over a 30-year loan.
An excellent credit score can be incredibly valuable. That’s why it’s important for you to take charge of your credit report and actively work to improve your credit score. Paying your bills on-time every month and keeping revolving balances (credit cards and lines of credit) low are important steps in building your credit score. Now, you can get a positive note from non-credit accounts too.
If you have Netflix and always pay on time, considering signing up for Experian Boost today. It won’t cost anything and could lead to a better credit score instantly. That’s a win for your money and your credit report. Don’t wait, sign up today to see how much your credit score can improve with Netflix and Experian Boost.