Experian Boost Can Affect Your Ability To Get A Loan

Why Experian Boost Might Be Hurting Your Chances of Getting Funded

There is something that I’ve seen trip up more clients looking for funding than you might expect: Experian Boost.

At first glance, it sounds great. You sign up, link your utility bills, cell phone payments, your streaming and insurance bills — and Experian gives you a bump in your credit score. Easy win, right?

Unfortunately, not always!

If you’re applying for an Unsecured Bank Loan — and keep in mind these lenders typically require a Debt-to-Income (DTI) ratio of 35% or less — Experian Boost could actually do more harm than good.

Here’s why Experian Boost can be a concern:

When you use Boost, those self-reported accounts get added to your credit report. That might sound like a good thing. But lenders don’t just look at your score — they also look at how much debt you’re already paying each month.

So when Boost adds things like your cell phone bill, utility payments, and insurance premiums to your report, those monthly payments may now be counted as debt. That means your DTI goes up — sometimes just enough to push you out of the qualifying range.

I’ve had to inform clients that their debt ratios are too high for unsecured loans based on their self-reported accounts. We have had to explain to clients how self-reported accounts added to Experian Boost can affect their debt ratios. Clients then need to remove the accounts from Boost and allow their credit reports to update. I haven’t seen clients with established credit who have had decreases in their scores due to the client removing Boost.

It’s especially disappointing because most lenders don’t typically care that you pay your light bill on time. It’s not that they think you're irresponsible — it’s just that those payments don’t reflect your ability to repay a loan in the way credit cards or installment loans do. Anyone can get a utility account. That’s not the kind of financial responsibility lenders, particularly unsecured lenders, are trying to measure.

Additionally, if you already have an established credit history — meaning you’ve got credit cards, maybe a car loan, and a solid record of on-time payments — Boost probably isn’t helping you much anyway. The score increase, if you see one at all, is often small. But the impact on your DTI can be big.

That’s why I don’t recommend Experian Boost for clients who are planning to apply for unsecured bank loans. These programs typically cap your DTI at 35%, and if Boost pushes you over that line, it doesn’t matter how good your score is — you're not getting funded until you remove the Boost accounts and allow your credit report to update.

So what should you do instead?

Focus on keeping your actual debt low. Pay down your credit cards and keep each card under 25% utilization. Don’t take on new monthly obligations if you’re planning to apply for funding soon. And if you’re not sure whether something like Boost is helping or hurting you — ask someone who knows how lenders think.

At Flourish Commercial Capital, we walk clients through this all the time. Our goal is to help you get approved — not just for the sake of getting a loan, but so you can confidently build or grow your business without unexpected setbacks.

Questions? Contact us at Flourish Commercial Capital. We’re Here and We’re Happy to Help!