Will paying my Cell Phone or Utility bill help my credit score?
I’m 19 and have fairly good credit for my age. I’ve been paying my cell phone bill for over a year (not a single late payment) and my credit card bills are always paid in full when the bill is ready. I am getting an apartment next month and wanted to know if paying the utility bill would help my credit score…same with the cell phone I have been paying for over a year now.
Thanks so much!
Credit scores are based on CREDIT. Utility, cable, and phone bills don’t count because no credit is extended (no one is loaning you anything). If you wanted to pay the phone bill with a credit card and then pay off the card, that would increase activity on the card.
A large part of credit is history. That takes time and there is no way around it.
credit score is a calculation of several factors. The part that is easiest to control (in normal situations) is to pay off any credit be it closed or open in full and on time. (closed credit are loans, open are credit cards). Bills by themselves are not a form of credit.
Also do not over use your credit cards. If you max them out it reflects negativity on credit scores. the recommend is to use <= 30% of your limit.
But like I said that is only a part of how the score is calculated. You might what to learn more.
payments for utilities such as phone electric cell phone water etc… etc… wont affect your credit unless you fail to pay them then it shows on your credit score.
paying off your bills in full is always good because you don’t pay anything interest.
the best way to increase your credit is to have 3 revolving accounts. a revolving account is basically half of your max credit limit with the minimum amount being paid monthly.
silly isnt it? but creditors and banks want to see that you are able to maintain steady payments. that means more money for them!!
FICO system is total bs and needs to get thrown out the window! but that is another story altogether.
Rent, cell phones, and utilities are not extensions of credit and not reported to the credit bureaus unless you default and the debt is turned to collections. The collection agency reports the defaulted debt.
It is smart to pay your credit card in full every month. That way you build credit and don’t pay interest.
A credit score is based on a 12 month activity. Cell phones do not report monthly but in the event that you default, that will be reported. Most banks, dept stores and credit cards do report monthly to the credit bureaus.
No it will not…put is will hurt your score if you don’t pay what you owe as agreed.
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