Are you looking to boost your credit score but don’t have enough credit history to do so?
If so, you may be in luck. Consumers can now use monthly utility, cellphone, and cable bills to give their credit scores an extra boost.
Experian, one of the top three credit rating agencies, has launched Experian Boost. Consumers that sign up gives the credit rating agency access to their bank account, to find monthly bill payments made on time.
“I think it’s a great resource to have, especially for younger people who are building credit,” says financial planner and owner of Workable Wealth, Mary Beth Storjohann.
“I think adding something like a bill payment to your credit history will allow you to get more friendlier terms when it comes to buying your home, buying your first car.”
However, Storjohann says consumers should do so with caution.
“With young people especially, just because you have a high credit score does not mean you have the income or the abilities to make these payments and take on this additional debt,” adds Storjohann.
TransUnion and Equifax, the two large credit rating agencies are not participating in the program.