Costa Mesa-based Experian North America said its “Boost” program has let Americans nationwide add more than 11 million points to their FICO credit risk scores in the first six months, with plenty of Orange County residents taking advantage of it.
The idea is simple: let people add positive news about their bill-paying history into their all-important credit score. The company said the potential impact is significant as consumers with low or subprime credit scores often face higher interest rates when seeking loans and mortgages.
“We want to make sure that everybody in the U.S. has access to the best and appropriate credit for them as an individual,” Craig Boundy, CEO of Experian North America, told the Business Journal.
Experian is one of three major credit reporting agencies operating in the U.S.
Its parent, which is incorporated in Dublin, posted revenue of $4.9 billion in its fiscal year ending in March, according to its annual report. Experian North America posted revenue of $2.9 billion during the same period.
13K in OC
Millions of consumers have used the Boost program, available at no cost to all credit active adults in the United States, the information services company said late last month.
The Boost program lets consumers contribute positive phone, internet, cable and utility payment histories directly into their Experian credit file for an opportunity to instantly increase their scores.
“We built a product from our headquarters here in Costa Mesa,” said Boundy, with “most of the key people” in the Orange County office.
The Boost system lets the user log in for free, pull up his or her FICO score and then add points to the report—if warranted.
Boundy told the Business Journal that his personal testing of the program took less than two minutes to recalculate and increase his rating.
Others in Orange County are doing likewise with more than 13,000 people completing the process since the system launched in March, translating into a total of over 114,000 points boosted or an average 12 points apiece as of this month.
By way of comparison, the “fair” range for credit worthiness and risk is between 580 and 669.
Experian said the FICO scores increased for two out of three users of Experian Boost, while 24% of those in the “poor” credit tier moved to a “fair” tier in the first six months.
