Experian Smart Money Digital Checking Account review: A checking account that builds credit

Normally you build credit by responsibly using credit products such as installment loans and credit cards. But if you don't have access to credit products or refuse to take on any kind of debt, you have few options for raising your score.

To address this need Experian, one of the three major credit bureaus, now offers a digital checking account designed to help users build credit without taking on any debt. Available with a free Experian membership, the Experian Smart Money™ Digital Checking Account also currently offers a $50 bonus when you set up direct deposit, along with a few attractive perks.

CNBC Select breaks down how Experian Smart Money works and how to decide whether it's a good option for you.

• APY
• Access to your cash
• Perks
• Fees
• Bottom line

The APY for Experian Smart Money is 0%, meaning it doesn't earn any interest on the account balance. While it's possible to find interest-bearing checking accounts with rates comparable to those of high-yield savings accounts, checking accounts traditionally offer no yield on your cash — and Experian Smart Money is no exception.

After you're approved for the account, you receive an Experian Smart Money™ Debit Card that you can add to your digital wallet and use right away. You can also request a physical debit card that gives you access to more than 55,000 surcharge-free ATMs in the Allpoint ATM network (Visit www.Allpoint.com to find an Allpoint ATM location). If you withdraw at an out-of-network ATM, a $3 fee applies per withdrawal.

You can withdraw up to $1,515 at an ATM per day (up to $505 per transaction) and make up to $5,000 in daily purchases.

The main benefit of the Experian Smart Money Digital Checking Account is its ability to improve your credit. It does this by working with another tool called *Experian Boost®. This tool helps you potentially raise your credit score by adding to your Experian credit report payment activity the credit bureaus usually ignore. This includes eligible on-time rent, utility, telecom and streaming service payments.

When you pay your bills with the Experian Smart Money account, these qualifying payments will be added automatically thanks to its integration with Experian Boost.

Note that Boost only affects your FICO® Score 8 based on Experian data. Your lender may use a different credit scoring model or pull your history from a different credit bureau altogether.

Additionally, if you set up direct deposit, you can get your paycheck up to two days early with the Experian Smart Money account. However, early availability isn't guaranteed and may vary.

Finally, you also can get a $50 bonus after you sign up for direct deposit. To qualify for the offer, you need to have at least $1,000 credited to your account in direct deposits within 45 days of account opening.

Experian's digital checking account charges no monthly fees and requires no minimum balance. You can also move your money free of charge. Still, there are a few fees you can potentially encounter, including:

• Foreign transaction fee: 3% or $3.25, whichever is higher
• Out-of-network ATM fee: $3
• Physical card replacement fee (except for when your card expires): $5

If your biggest financial goal is to build credit, the Experian Smart Money checking account can be a helpful tool. That said, remember that you can connect your third-party accounts to Experian Boost and reap the same credit-building benefits. While Experian Smart Money is a decent digital checking account in its own right, it's wise to consider multiple other options to find the best checking account for you.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every checking account review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of banking products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.

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*Results may vary. Some may not see improved scores or approval odds. Not all lenders use Experian credit files, and not all lenders use scores impacted by Experian Boost.