Bay Realty Blog: Experian Boost - Don't Do It!

Experian Boost - Don't Do It!

Sometime a boost is not a boost at all!!!  Read this before using the Experian Boost Plan.....

Its not for everyone!!

Good information from John Meussner 

This article was originally published at JMLoans.com

Experian Boost - Don't  Do It!

 

     You've perhaps seen Experian's latest marketing pitch on TV commercials for their "Boost" product - "Help Raise America's Credit Scores", the website hero image reads.  And yes, the product can do what it says - boost a user's credit scores.  That's great news, right!?!?  Well, no.

 

     All that glitters is not gold, and Experian Boost is a perfect example.  While yes, scores may go up, the product could also cause delays in the mortgage process, and disappointment for borrowers who find that their boosted scores aren't worth anything when it comes to getting a loan.

 

     Here's how it works:  A consumer signs up for Boost, and self-reports their own utility or other non-traditional tradelines to Experian.  The consumer's bank account is linked to Experian, so Experian sees payments being made to the utilities, reports them on their reports using FICO model 8, and BOOM - scores are up!   BUT, and a big ole' but, is that the report notates the account is self-reported:

Experian Boost self reported

     Therein lies the problem.  When a mortgage lender sees these self-reported tradelines, they'll require a borrower to remove them from their credit report - causing delay, and uncertainty over their credit scores, rates, and mortgage insurance costs.  As of now, Fannie Mae, Freddie Mac, and HUD will all require a borrower to "correct" their report before they'll approve their loan - that means conventional, FHA, VA, and USDA financing is off the table for any borrower using Experian Boost.  

 

     For those looking to get a home loan, it's important to know this information in advance.  One of the first questions a lender will ask is "do you know your credit score?".  A lender that doesn't know any better may overlook the self-reporting and set a borrower (and their real estate agent) up for failure.  Without an accurate credit report, a preappoval is worthless.  An approval through DU or any other automated system isn't accurate, and uncertainty prevails for anyone using Experian Boost.  

 

     Why would they create this product, then?  Well, although it's a hinderance to mortgage financing, it could benefit someone trying to build their credit from scratch.  If a consumer has a "thin" credit file, they may not have any score at all reporting.  Again, even if a score IS generated, it'll be useless for getting a mortgage, but it COULD help get other credit, open cards and other accounts that could eventually lead to a healthy credit profile, or offer other benefits.  So the program isn't all bad - it's just important to note that if you're going to be buying a home, using Experian Boost could cause delays and disappointment - and you won't see that in the program's advertising.

 

 

Want to work with a lender on top of the latest industry news and the best ways to make getting a mortgage easy?  Give us a call at 484-680-4852 or reach out and ask an expert!

 

This article was originally published at JMLoans.com

John Meussner

NMLS# 138061

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Comment balloon 10 commentsDebra Leisek • May 16 2019 07:42AM

Comments

Or world is changing Debra Leisek.  All trying to get something from us and not caring about the consequences.  We went through Homer 2018, Too bad we could not have had a get-together when Vanessa and I came there to visit our son and Vanessa's cousins in Anchorage this past Christmas.  Son is back here in Hawaii.

Posted by Bruce Hicks, Your Lifetime Friend/Helper! (Best Homes Hawaii) 4 months ago

So True Bruce Hicks 

If you are ever back in Homer please do stop in! we are easy to find in the middle of Downtown Homer! 

Thank You!

Posted by Debra Leisek ( Bay Realty,Inc Homer Alaska) 4 months ago

This is an eye opener for people who believe that there is an easy way to boost credit.

Posted by Sally K. & David L. Hanson, WI Realtors - Luxury - Divorce (EXP Realty 414-525-0563) 4 months ago

Good morning, Debra Leisek this is a good reblog...I read this post first this morning and sent the link to many people.... there is no easy fix.... pay your bills and stop spending...

Posted by Barbara Todaro, Marketing Agent for The Todaro Team (RE/MAX Executive Realty ) 4 months ago

Good morning Debra. If it sounds too good to be true, it usually is! Thanks for John's reblog. Enjoy your day!

Posted by Wayne Martin, Real Estate Broker - Retired (Wayne M Martin) 4 months ago

Good afternoon Debra. John always provides good information and this is terrific.

Posted by Sheila Anderson, The Real Estate Whisperer Who Listens 732-715-1133 (Referral Group Incorporated) 4 months ago

Thanks for the reblog, Debra Leisek , I think this info is definitely something to let the whole world know : )

Posted by John Meussner, #MortgageMadeEasy Walnut Creek, CA 484-680-4852 (Mason-McDuffie Mortgage, Conventional Loans, Jumbo Loans, FHA, 203(k), USDA, VA,) 4 months ago

Debra, so funny I just went to Marte Cliff  post and she reblogged this same one... clearly a total winner, Endre

Posted by Endre Barath, Jr., Realtor - Los Angeles Home Sales 310.486.1002 (Berkshire Hathaway HomeServices) 4 months ago

Thank you John Meussner Your post was chock full of good advice and we all appreciate it!  

Sally K. & David L. Hanson

 Barbara Todaro

 Wayne Martin 

Sheila Anderson 

  all agree!!! 

Thank you everyone!!

Posted by Debra Leisek ( Bay Realty,Inc Homer Alaska) 4 months ago

Endre Barath, Jr.  they wouldn't let me include you in the thank you post!!

So Thank you!! It really is a worthwhile post

Posted by Debra Leisek ( Bay Realty,Inc Homer Alaska) 4 months ago

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