Do Credit Boosters Really Work?

Now more than ever, maintaining a good credit score is vital. Your credit score influences your ability to secure loans, gain favorable interest rates, and can even impact some job prospects. Given its importance, some of us might want to turn to “credit boosters” to improve our scores. But do these credit boosters really work? 

What are Credit Boosters? 

We can define credit boosters as strategies, tools, or services specifically designed to improve your credit score. These can include credit repair services, credit-builder loans, and apps that report additional payments to the major credit bureaus. 

The purpose of these tools is to address the key factors that impact your credit score: payment history, credit utilization, length of credit history, and more. 

Atlantic Bay and Credit Boosting  

At Atlantic Bay, we’re happy to perform a “soft pull” on your credit (in which your credit scores will not be affected) and look at ways to pay down accounts and resolve delinquencies. You may have other options, such as opening a secured credit card, or becoming an authorized user for a loved one with solid credit. We’ll help you find out!  

Expert Tip

A "soft pull” is a review of your credit that is not tied to any lending decisions. For example, an apartment complex, insurance company, or even you yourself can do a soft pull merely to examine your credit. Soft pulls do not affect your credit score in any way.

Credit Rescoring  

We also offer credit rescoring tools to help our borrowers increase their credit scores more quickly. Credit history changes can take time to be reflected in credit scores, and a rapid rescore can speed up the process. 

We utilize a third-party technology solutions model to facilitate credit rescore requests. Here’s how the process works: 

1. Initial Evaluation: We start by running "What If" scenarios to determine the best course of action. This helps us identify the most effective steps to boost your credit score. 

2. Document Submission: We request statements or proof from you, the borrower, and upload these documents. 

3. Research and Contact: The model conducts the actual research, contacts the credit bureaus, and if necessary, initiates a 3-way call involving the borrower, creditor, and the bureaus. This ensures that all parties are on the same page and any discrepancies are promptly addressed. 

4. Completion Notification: Once the rescore is complete, we’re notified. We then re-issue or refresh the existing credit report to reflect the changes.

5. Timeline: All these steps must be completed within 30 days of the initial credit pull.  

And while paying down a credit card or settling a small medical collection can often provide a quick boost to your credit score, there are times when the situation is a little more complex. In such cases, our team typically refer borrowers to credit repair companies. These companies specialize in addressing more complicated issues and can provide the necessary expertise to resolve them. 

So, Do Credit Boosters Really Work? 

Like anything in life, the answer is...it depends. 

Credit repair services can be highly effective if there are errors or inaccuracies on a credit report, as they can dispute incorrect entries and potentially improve scores. However, they cannot remove accurate negative information; choose a reputable service to avoid scams and ensure the best results for you. Meanwhile, credit-builder loans are beneficial for those with little to no credit history, as making on-time payments can help establish a positive credit history, though the impact on the credit score can take time. 

And those apps that report additional payments, such as rent or utilities, can help individuals with thin credit files build a more robust credit history, but improvement may be less noticeable for those with an already well-established credit history. Just be mindful that some of these services use the VantageScore system, while mortgage lenders use traditional FICO scoring. No matter what that cool commercial says, it’s your FICO scores that matter most. 

The Bottom Line  

The best way to maintain a strong credit score is through responsible financial behavior. Pay your bills on time, keep credit card balances low, and avoid unnecessary hard inquiries. Combining these habits with or without the use of a credit booster can lead to a healthier credit score over time. 

If you’re seriously considering using a credit booster, be sure to do your research and choose only the most reputable options. And always remember, there's no substitute for good financial habits when it comes to maintaining a strong credit score.