Experian Smart Money™ Checking Account review: Build credit with no fees
A strong credit score is a powerful financial asset, potentially saving you thousands of dollars in interest on auto or personal loans. Beyond lower rates, it is also a vital factor in securing a credit card with favorable terms.
However, building or repairing credit often feels like a “Catch-22.” It typically requires a decent score to qualify for the very loans and cards needed to prove your reliability through on-time payments. To bridge this gap, the credit reporting agency Experian offers a way for consumers to boost their scores without taking on any additional debt.
Experian’s Smart Money Digital Checking Account can lead to an increased credit score when you use your debit card to make routine payments such as utility bills, rent, internet or insurance payments on time. Keep reading to learn more about the features, benefits and potential drawbacks of Experian’s new checking account.
What is the Experian checking account?
At 35%, payment history accounts for the largest portion of your credit score. If you don’t have any loans or other forms of consumer debt, it can be hard to get a good rating in the payment history category.
Experian’s Smart Money Digital Checking Account can lead to a modest boost in your credit score. Experian tracks payments made on time for regular monthly bills and rewards you with a bump-up in your credit score. Experian’s checking account is federally insured just like a traditional checking account from a bank or credit union. Experian isn’t a bank, though – accounts are offered through a banking partner, Community Federal Savings Bank (CFSB).
Experian checking account basic overview
| Banking partner | Community Federal Savings Bank |
| FDIC Insurance | Up to $250,000 per account |
| Account Type | Digital checking with credit-building integration |
| Primary benefit | Boost credit through routine banking transactions |
How does Experian’s digital checking account work?
When you open an Experian digital checking account, you’ll link your checking or any other accounts used to pay bills to a virtual debit card. When you make those payments, Experian will automatically detect payments made on time and add eligible payments to your credit file.
Once you’ve linked bills and any rental payments, Experian Boost can scan up to two years of your payment history for qualifying bills that have been paid on time for at least three months during the past six months. Once you verify the information, Experian will add that payment history to your credit file, and you may realize a jump in your credit rating by an average of 13 points.
Here’s a closer look at the key features and benefits of Experian’s Smart Money Digital Checking Account:
| Monthly fees | $0 | No monthly maintenance fees or balance requirements |
| Minimum balance | $0 | No penalties for low balances |
| Opening deposit | $0 | Fund account with any amount |
| Overdraft fees | $0 | Transactions charged against insufficient funds will be denied |
| ATM access | More than 55,000 free ATMs | Allpoint nationwide network |
| Out-of-network ATM fee | $3 | Applies to non-Allpoint ATMs |
| Direct deposit bonus | $50 | Applied to qualifying direct deposits |
| Early Payday | Up to 2 days in advance | Applicable with direct deposit |
Credit-building features
Experian Boost is completely free to use and can lead to a rapid improvement in your credit score.
- Experian Boost payment integration: Experian Boost requires you to link your checking and other accounts used to make routine bill payments so it can scan your payment history.
- Eligible payments: Recurring bills that qualify for Experian Boost include rent, internet and phone, utilities, insurance, and streaming services.
- Measurable impact: According to Experian, the average increase to credit scores from Boost is 13 points.
- No debt required: Unlike building credit through loan or credit card payments, you won’t have to incur any additional debt to increase your credit score using Experian Boost. You’ll use the payments you are already making to potentially increase your credit score.
Digital banking tools
Experian’s digital checking and savings accounts come with a wealth of digital banking tools, including:
- Real-time transaction notifications so you always stay on top of your account balance.
- Built-in budgeting tools via the Experian app to help you better plan and manage your finances.
- A virtual debit card when you open an account that can be used to pay all your routine bills.
- Free credit monitoring and FICO score updates so you always know where your credit score stands.
Experian checking account requirements
There are a few conditions that have to be met to open a checking account through Experian. These requirements include:
- An Experian membership. Experian offers a basic free membership tier, but more robust membership plans require an ongoing monthly fee.
- Valid government-issued ID
- Social Security number
- Residential address in the United States
- Email address and phone number
- Age 18 or older
Benefits of an Experian membership include credit monitoring, identity theft protection and customer support available seven days a week. There’s no credit check required to open an account, so it’s a great way for people with poor or no credit to begin their journey to better credit scores.
Pros and cons of opening an Experian digital checking account
Improving your credit score is one of the biggest potential benefits of opening a checking account with Experian. There could be some drawbacks, though.
5 pros of an Experian Smart Money Digital Checking Account
- You can build credit without taking on any additional debt.
- There are no recurring monthly maintenance fees or balance requirements.
- Access funds up to two days early with early direct deposit.
- You’ll have access to more than 55,000 surcharge-free ATMs nationwide through Allpoint Network.
- Comprehensive credit monitoring.
5 cons of an Experian Smart Money Digital Checking Account
- It’s a pure digital account – there are no physical branch locations.
- You can’t deposit checks through the mobile app.
- Out-of-network ATM’s have a $3 surcharge, in addition to any point-of-contact charges.
- You don’t get any overdraft protection. Instead, charges that are over your account balance will be denied.
- Boost only works with Experian – TransUnion and Equifax credit reporting agencies won’t recognize your credit-building efforts through Boost.
The verdict: Experian’s Smart Money Digital Checking Account can be a great option for building and repairing credit, as well as for consumers looking for no-cost banking services.
Is the Experian Smart Money Checking Account right for you?
Building and repairing credit can be a long journey – even more so when you can’t access credit. Experian’s Smart Money Digital Checking Account is a way for consumers to improve their credit scores simply by paying their bills on time. Qualifying payments are bills you already pay, such as rent, utilities, internet, phone and streaming services.
The account doesn’t cost anything to open, and there are no ongoing maintenance fees or balance requirements, so it’s also a good option if you are seeking alternatives to traditional banking services that come with routine fees. You’ll also get access to credit monitoring and budgeting tools so you can better manage your credit score and personal finances.
