Consumers’ cell phone bill and utility payments will be added to one of their major credit reports (Experian), a move that will likely boost the credit scores of millions of people and increase loan approvals.
This data will be added to your credit report starting in early 2019. This will be seen and factored into your loan approval from a lender. This is the first time U.S. consumers will be able to provide this data for their credit scores. Actions done by Experian will help those consumers who have low to no credit scores because they have a history of limited or subprime borrowing from banks and other mainstream lenders. This move could also help subprime borrowers whose scores are currently lower than what some lenders require.
This new service, called Experian Boost, has been in development for the past three years in order to help those with low credit scores. Experian will also include landline phones and cable-TV accounts.
Approximately 46 million U.S. consumers with thin credit files could see their credit score increase instantly after the new data is added. In a sub-section of the 46 million U.S. consumers, 1.5 million could receive a score after adding their data. This will improve their chances of getting credit cards, personal and auto loans, because paying your phone bill could be a sign that consumers will pay their bills as well.
Credit: Realtor.com