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Subject:  Re: Credit Boost Date:  4/9/2019  4:37 PM
Author:  aj485 Number:  726 of 741

*experian is acting like a data mining company and not a credit bureau*

I would say that Fair Isaac (the company that developed credit scoring) and the credit bureaus are actually some of the original data mining companies. They were mining data back in the 50s and 60s.

As far as the 'credit boost' - it's another attempt to be add a population without conventional credit to he credit bureaus list of potential lending customers, which will then be sold to lenders. Alternatives to credit scoring have been tried in the past, but are generally not as successful as credit scoring. For instance, FHA allows alternative credit information, like proof of rent payments, utility payments, etc. But FHA loans generally have higher default rates than conventional loans. And subprime lenders have tried (and mostly failed) to profitably make loans to the 'unbanked' population.

As Joel pointed out, the 'boost' in credit score may or may not actually occur. Even the Experian link you provided has fine print that says:

Results may vary. Some may not see improved scores or approval odds.

And even if the customer sees a 'boost' to their credit score, that doesn't mean that any lenders will want to use the higher score. Also in the fine print from the link:

Your lender or insurer may use a different FICO® Score than FICO® Score 8, or another type of credit score altogether.


Not all lenders use Experian credit files, and not all lenders use scores impacted by Experian Boost.

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