Experian helps consumers use positive rent payments to build credit

COSTA MESA, Calif.–(BUSINESS WIRE)–To help millions of U.S. renters improve their credit scores, Experian^® today launched a beta version of Experian Boost^®1 which allows consumers to make qualifying “positive” residential rent payments directly to their Experian credit report. This ability makes Experian Boost the only feature that can instantly improve a consumer’s FICO^® Rating 8² through positive rent payments at no cost.

“Experian Boost is a game-changer and we are excited to launch the first phase of this new enhancement that will allow consumers to instantly add lease payments to their Experian credit report,” said Jeff Softley, President Direct to Consumer, Experian Consumer Services. “We are committed to continually improving Experian Boost to bring financial power to everyone.

Based on preliminary analysis³ Highlighting the potential impact of a positive residential rent payment report via Experian Boost, Experian believes:

• 66% of consumers will see an instant increase in their FICO^® Rating 8

• A FICO^® Score 8 improvements of nearly 10 points on average for those who receive a boost and are new to using Experian Boost

• Consumers who get a boost with thin credit records or low FICO^® Scores see an improvement of around 14 points

• An average improvement of almost 19 points for new users who see a FICO^® Score 8 improvement when positive rent payments are combined with other payments eligible for Experian Boost, such as telecommunications, utilities, and video streaming services

Reporting positive rents via Experian Boost: how it works

With the beta, consumers who rent from more than 1,500 of the largest U.S.-based property management companies and pay their rent directly to their property management company or through platforms like AppFolio Property Management, Buildium^®Yardi^® Breeze and Zillow^® The rental manager can add qualifying positive rent payments to their Experian credit file through Experian Boost.

Once a consumer creates an Experian account and signs up for a free or paid Experian membership, the consumer can register and authorize access to checking, savings, or credit card accounts used to pay rent so that Experian can identify residential rent payments under eligible conditions. amount range. Once three qualifying rent payments within the past six months are verified by the consumer, including at least one within the past three months, they may be added to the consumer’s Experian credit report, assuming they have no does not already have rent in his credit file via Expérian^® RentalOffice^® or an active home equity line of credit. The whole process takes less than five minutes. Once logged in, eligible future rent payments can be automatically added to a consumer’s Experian credit file.

New property management companies and payment methods will continue to be evaluated and added during the beta. Experian also plans to add individual owners and smaller property management companies over time.

Experian Boost: three years of significant impact

Since its launch in spring 2019, 8.6 million⁴ consumers instantly improved their FICO^® Achieve a score of 8 with an average increase of 13 points by adding their positive payments for telecommunications, utilities, and video streaming services to their Experian credit report through Experian Boost. While not all users receive an increased FICO score, the free feature added a total of 88 million points to FICO scores nationwide. Those with limited credit histories and FICO scores below 620 saw the most benefit with an average FICO Score 8 improvement of almost 17 points for subprime consumers and almost 20 points for those with thin credit records (among users who see an improvement).

Experian analysis shows member FICO^® Score 8 continues to improve during an Experian membership, even after being boosted. In fact, members who initially received a boost saw their FICO 8 score continue to improve by an additional 9 points on average over the next 12 months.

Experian was the first major credit reporting agency to include rent payments in consumer credit reports and has long supported the use of positive rent payments. In 2010, the company acquired RentBureau, which provides another way for consumers to report positive rent payments to Experian through their landlord, property management company, or third-party rent reporting service. .

About Experian

Experian is the world leader in information services. During life’s big moments – from buying a house or car, to sending a kid to college, to growing a business by connecting with new customers – we enable consumers and our customers to manage their data with confidence. We help individuals take financial control and access financial services, businesses make smarter decisions and thrive, lenders lend more responsibly, and organizations prevent identity theft and crime. .

We have 20,600 people operating in 43 countries and every day we invest in new technologies, talented people and innovation to help all of our customers maximize every opportunity. We are listed on the London Stock Exchange (EXPN) and are part of the FTSE 100 index.

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