Planning to buy a home in Brantford? Avoid the Experian Boost
You may have seen the television ads promoting the new “Experian Boost.” You may even have been tempted to check into using it to raise your credit scores before going shopping for a new home here in Brantford.
Instead of making it easier and faster to buy a home, using this new program can actually make it more difficult.
Experian Boost promises to raise your credit scores, and it does. Under this program, the client self-reports payments that would not normally be reported to the credit bureaus. These include rent, utility bills, private loans, child support, etc. The client also gives Experian access to their bank account, in order to verify that these amounts have been paid. Creditors now have more proof that the individual does pay his or her bills.
That’s fine, as far as it goes.
However, since these payments will show on a credit report as “self-reported,” all reject the resulting scores.
The danger comes in lenders using automated approval systems or in not carefully reading the credit reports, and thus using the scores in making a pre-approval determination. When the file goes to underwriting, they’ll require the borrower to have the self-reported information removed and the account re-scored.
This will delay the closing and could result in the borrower’s application being denied, or at the very least, in changing the interest rate.
If you need to raise your credit scores before buying a home, do it the old-fashioned way: Pay down your debts, pay all of your bills on time, and be careful in taking on new credit. If you want good advice on raising your scores, talk with your favorite Brantford mortgage lender about your specific situation.
Is Experian Boost good for anything?
Yes, it is good for individuals who are just starting out and have no credit score – good or bad. It’s also a tool for those who need to rebuild their credit. It will help these individuals show their credit worthiness in order to rent a home, apply for utility services in a new location, buy a car, obtain a credit card, or even gain employment.
In other words, it is a tool with specific uses. Buying a home is NOT one of those uses.