Title: How Utility Bills Might Affect Your Credit History
Headings: Does Paying Utility Bills Affect Your Credit Score?
Does Paying Utility Bills Affect Your Credit Score?
Alternative Credit-Scoring Methods
Utility Accounts in Collections
Service Provider Payment History Checks
Building Your Credit
Monitor Your Credit
Fix Errors in Your Credit Reports
Keep Paying on Time
Get Current on Bills That Affect Your Credit Score
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Content: She specializes in divorce, death, career changes, and caring for aging relatives. Article Reviewed on August 29, 2020
Read The Balance's Financial Review Board
Marguerita Cheng
Updated August 29, 2020
To build credit, you need to borrow money and make loan payments on time. The longer you do that, the better your credit will be in general. 1 ﻿ But since you also need to pay utility bills before their due date, you may wonder if paying these bills positively affects your credit scores. It may seem like on-time payments are on-time payments whether you’re repaying a loan or keeping the electricity on. Unfortunately, paying your utility bills typically doesn't impact your credit scores since utility companies don't report payment history to the credit bureaus. 2 ﻿ But there are some important exceptions: If lenders use an “alternative” credit-scoring method, utility payments can help your score. If you fall too far behind on utility payments, your credit will most likely suffer if accounts get transferred to collection agencies. Your history of utility payments can affect your ability to get other utility services.