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 to Use Your Netflix Payments to Build Credit
Time needed: 10 minutes.
This how-to will teach you how to set up an Experian Boost account and add Netflix to your payments so you can start building credit and boost your credit score. This will work with Netflix and most other subscription services as well, including Hulu, Disney+, HBO and more.
- Set Up a Free Experian Boost Account
Start by creating an account with Experian Boost. You’ll need to enter in your personal information, including your full name, address, email address and Social Security number. The account is free to set up and no credit card is required for sign up.
- Link Your Bank Accounts
You’ll be asked to link a bank account or credit card that you use to pay your bills. Select your bank and sign in with your bank’s online login credentials. You can add more than one account if you choose to.
- Select and Add Your Netflix Account
You will have the option to add your Netflix payment history or other payments such as utility bills or subscription services to your Experian credit file.
- See Your Updated Credit Score
Once your subscription accounts have been added to your Experian file, you will likely see an instant boost to your credit score.
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.
Experian Boost connects your utility and telecom service accounts to your Experian credit report, which has the potential to raise your FICO score. It does this by monitoring your bank account activity to track payments to streaming services, cell phone carriers, and utility accounts. Because it only reports on positive transactions, it can be a good, safe way to build your credit.
Yes, it is safe to link your bank account to Experian Boost because it is limited to read-only access to the data. It does not store any bank credentials either, so your account is not at risk for malicious intrusions. It is also safe for your credit score because it only records positive, on-time transactions, which can work to improve your credit.
Around 60% of people who’ve used Experian Boost have seen their credit score go up, with the average boost being 12 points. Those who started with what is considered a “poor” score did even better, with an average increase of 22 points.
Of course, not all users will experience the same effect. People with an already good credit score may see little to no improvement, so the benefits are felt the most by thin-file consumers or those with poorer scores.
It only takes a few minutes to sign up and link your bank account, and if you have a history of making payments to utility and telecom providers on time, the boost will be instant. Then, Experian Boost will provide updates to your score every 30 days.
However, if the account is new and you don’t have a FICO score yet, you’ll likely need at least six months of history before you can generate a score. On the other hand, if you already have a good score you may not see a change at all in your credit score after signing up for Experian Boost.