• Skip to primary navigation
  • Skip to main content
  • Skip to footer

FinanceJar

FinanceJar

Take the next step on your journey

  • Credit Scores
    • Get Free Credit Score
    • Get Your Free FICO Score
    • Credit Score Range
  • Credit Repair
  • Credit Reports
    • Credit Inquiries
  • Debt
    • List of Collection Agencies
  • Loans
  • About Us

Home Credit Scores Does Paying Utility Bills Help Build Credit?

Does Paying Utility Bills Help Build Credit?

Credit score gauge made out of bricks with utility bill icons

At a glance

You won’t automatically build credit by paying your utility bills—you’ll need to take active steps to have your payments added to your credit reports.

Instantly access your report and discover your credit score from all three credit bureaus.

Checking your score won't hurt your credit.

Written by Jesslyn Firman and Yi-Jane Lee

Reviewed by Victoria Scanlon

Aug 5, 2022

Fresh advice you can trust

We promise to always deliver the best financial advice that we can. Our writers and editors follow strict editorial standards and operate independently from our advertisers and affiliates. Learn more about how we make money.

It’s common knowledge that paying your credit card and loan bills can boost your credit score, but what about your utility bill payments?

The bad news is that utilities aren’t treated quite the same way as other payments, and they don’t normally build your credit. The good news is that it’s possible for you to change this. Read on to learn exactly how to use your utility bills to boost your credit.

Table of Contents

  1. Do utility bills show up on your credit reports?
  2. How to add utility bills to your credit report
  3. Other ways to build credit without reporting your utility payments

Do utility bills show up on your credit reports?

Utility providers don’t usually report your account information to the three credit bureaus (Experian, Equifax, and TransUnion). This means that by default, utility payments aren’t included in the information that shows up on your credit reports, which is why they don’t normally affect your credit score.

However, utility bills are considered a type of alternative credit data. This means that they technically can be included in your credit reports, even though this doesn’t usually happen.

If your utility bills do appear on your credit report, they can be used by lenders to evaluate your creditworthiness, and they can contribute to your FICO and VantageScore credit scores. 1 2

The table below lists several types of alternative data, alongside the standard data that is almost always included on your credit report.

Standard Credit Data vs. Alternative Data

Graph showing standard vs. alternative credit data

As you can see, loans and credit cards are all added to your credit reports by default. Most of your other regular bills are not.

How utility bills can damage your credit score

Although we’ve said that utility bills (and other bills considered alternative data) don’t normally affect your credit score, this is actually an oversimplification. The truth is that it’s possible for utilities to have a negative effect on your score if you fail to pay them.

If you go long enough without paying your utility provider, they may charge off your debt (formally write it off as a loss) and send it to a debt collector.

Although utility companies don’t generally furnish information to the credit bureaus, debt collection agencies usually do. Once they receive your debt, they’ll probably add a negative mark called a collection account to your credit reports, which can severely damage your credit.

The upshot is that by default, utility bills can hurt your credit if you fail to pay them, but they never help it, even when you pay them on time. This obviously isn’t ideal. However, there are ways you can actually improve your credit score by having your utility payments added to your credit report—you just have to do a little extra work.

How to add utility bills to your credit report

There are four ways you can get your utility payments reported to the credit bureaus:

1. Ask your utility provider to report your payments

Although it’s rare, some utility providers offer credit-reporting services. Try calling a customer service representative on the phone and ask them whether they’re able and willing to start reporting your on-time payments to the credit bureaus.

Make sure to take into account any service fees they charge and which credit bureaus they report to. Some companies only report to one or two credit reporting agencies instead of all three. If your provider reports to TransUnion and Equifax, for instance, but not Experian, then your bills will improve your credit score with the first two bureaus but won’t affect your Experian credit score.

2. Use Experian Boost

An easy way to get credit for paying your utility bills is to self-report your payments by using one of the most popular free credit builder apps—Experian Boost.

Experian Boost is free to use. It allows you to add your phone, cable, internet, and other utility bills to your Experian credit report. You can add up to 24 months of payment history to your account, which can immediately increase your credit score.

Boost your credit for FREE with the bills you're already paying

experian boost logo

5.0/5

Sign Up

No credit card required. Results may vary, see website for details.

Boost your credit for FREE with the bills you're already paying

  • Experian Credit Report and FICO® Score updated every 30 days on sign in
  • Instantly increase your credit scores for FREE with Experian Boost™
  • Daily Experian credit monitoring and alerts

How to use Experian Boost to report your utilities

To use this service, you first connect your bank account to Experian Boost, and the app will automatically search for qualifying bill payments to add to your credit file.

Experian Boost ignores late payments, so you don’t have to worry about negative information being added to your credit report. You can also change your mind at any time and remove any payments that you’ve decided you don’t want on your report. 3

However, bear in mind that Experian Boost will only add your utility payments to your Experian credit report and not your Equifax or TransUnion credit reports.

3. Sign up for a paid bill-reporting service

If you want your utility bills to contribute to more than just your Experian credit score, then you can sign up for a paid bill-reporting service that reports your payments to TransUnion and/or Equifax as well.

Here are some companies that add utility bills to your credit reports:

  • LevelCredit: Adds rent, cell phone, electric, gas, and water payments to your credit reports. It reports rent payments to all three credit bureaus, but only reports utility payments to TransUnion.
  • eCredable: Adds up to eight utility accounts (power, water, gas, waste, mobile phone, cable TV, satellite TV, internet, or landline phone bills) to your TransUnion credit report.
  • SimpleBills: Adds various utility bills to your Equifax credit report and combines all of your utility bills so that you only need to make a single payment.

As mentioned, all of these services cost money, but they’re quite affordable. You can usually get your utilities reported for under $10 per month, and sometimes for substantially less than that (eCredable’s cheapest plan costs just under $25 per year, or around $2 per month).

4. Pay your utility bills with a credit card

If you don’t like any of the methods above, you can always just pay your utility bills with a credit card. Credit card companies almost always report to the credit bureaus, so a record of your payments will show up on your credit reports.

Provided that you pay your credit card bills on time every month, you can boost your credit because timely payments benefit your payment history—the most important factor affecting your credit score.

However, make sure to only use a small fraction of your credit limit on the card you use to pay, or else your credit score may suffer. A good rule of thumb is to keep the amount you spent on the card (known as your credit utilization rate or your debt-to-credit ratio) below 30% of your limit, although under 10% is ideal. 4

You should also make sure that your utility provider won’t charge you steep processing fees for paying by credit card. Call them to make sure.

Other ways to build credit without reporting your utility payments

Don’t worry if none of the methods above work for you. There are several other ways to build credit that don’t involve having your utility bills reported to the credit bureaus:

  • Become an authorized user: Get someone with good credit to add you as an authorized user on their credit card Being an authorized user can boost your credit score, assuming they use the account responsibly and the credit card company reports authorized users to the credit bureaus.
  • Get a credit-builder loan: Unlike a traditional installment loan, you can get a credit-builder loan with no credit or a bad credit score. However, you won’t get access to the funds you borrow until you’ve made all your payments.
  • Report your rent payments: In addition to getting credit for your utility bill payments, you can get credit for your rent payments. Ask your landlord to report them or sign up for a rent-reporting service like Rental Kharma, PayYourRent, or RentReporters.
  • Get a secured credit card: Secured cards are credit cards that require a security deposit, which means they don’t require good credit. Using them allows you to build credit by establishing a strong credit history and increasing your available credit without the risk of spending beyond your means. We’ve listed a few secured credit cards that are suitable for credit-building in the table below.

Regardless of whether you’re trying to start building your credit at 18 or you’re looking for ways to rebuild your credit after a few slip-ups somewhere along the line, there are many ways to build up a strong credit profile.

Make sure to always pay your utilities and other bills on time, be proactive about exploring your options, and you’ll be well on your way.

Takeaway: Paying your utility bills can help you build credit if you get your payments added to your credit reports.

  • Utility bill payments aren’t usually reported to the credit bureaus, meaning they won’t automatically appear on your credit reports or contribute to your credit score.
  • Not paying utility bills can hurt your credit score if your utility provider sends your account to collections.
  • To get utility payments added to your credit report, ask your utility provider to report your payments, sign up for a bill-reporting service, or pay your bills with a credit card.
  • Other ways to build credit include becoming an authorized user, getting a credit-builder loan, applying for a secured credit card, or reporting your rental payments.

Article Sources

  1. FICO. "FICO Fact: Do FICO Scores Consider Telco and Utility Data?" Retrieved May 30, 2022.
  2. VantageScore. "5 Questions with Steve Ely" Retrieved May 30, 2022.
  3. Experian. "Add Your Cell Phone Payments with Experian Boost" Retrieved May 30, 2022.
  4. VantageScore. "Debunking a Credit Score Myth: Forget What You’ve Heard. Use Much Less Than 30% of Your Available Credit Card Limit" Retrieved May 30, 2022.

Jesslyn Firman

Credit Analyst

View Author

Jesslyn Firman is a credit analyst for FinanceJar. Her work covers credit repair and credit scores, and in the past she's extensively researched and written about the insurance industry. Jesslyn has a B.S. in Finance and Accounting and an MBA in Management.

Yi-Jane Lee

View Author

Yi-Jane Lee is a credit analyst who writes for FinanceJar. Her work covers credit repair, the credit scoring industry, budgeting, and debt. She has a BA from McGill University in Montreal, Quebec.

Related Articles

Credit report showing SYNCB/PPC
Credit Inquiries

Nov 5, 2021

SYNCB/PPC: What Is It and Why Is It on My Credit Report?

SYNCB/PPC stands for Synchrony Bank/PayPal Credit. There are a few...

FinanceJar Team
Polar bear guarding credit report in ice, representing how to freeze your credit
Credit Reports

Sep 22, 2021

How to Freeze Your Credit

A credit freeze prevents prospective lenders and creditors from...

Samuel Osbourne
Black car being repossessed which has an impact on credit
Credit Repair

Aug 5, 2022

How Long Does a Repo Stay on Your Credit?

A repossession takes 7 years to come off your credit report,...

FinanceJar Team
Gauge representing credit utilization rate
Credit Scores

Oct 6, 2021

Credit Utilization: What It Is and How It Affects Your Credit Score

Your credit utilization is the amount of your revolving credit that...

FinanceJar Team
Man disputing an item on his credit report with the credit bureaus
Credit Repair

Sep 13, 2021

How to Dispute an Item on Your Credit Report

If you suspect you have inaccurate information on your credit...

Victoria Scanlon
erasing and removing late payment from credit report
Credit Repair

Sep 24, 2021

How to Remove Late Payments from Your Credit Report

You can get late payments removed from your credit report by...

FinanceJar Team
FinanceJar

Footer

Credit

  • Credit Scores
  • Credit Repair
  • Credit Reports
  • Debt

Company

  • About Us
  • Contact Us

Legal

  • Terms & Conditions
  • Privacy Policy

How We Make Money

We make money from advertising. We place links on our website to our affiliates, and when you click those links, our affiliates compensate us for it. Our relationships with our affiliates may affect which products we feature on our site and where these products appear in our articles.

Facebook Twitter Instagram TikTok YouTube LinkedIn Pinterest

© 2023 – ONR Financial Networks LLC – All Rights Reserved.

  • Credit Scores
    • Get Free Credit Score
    • Get Your Free FICO Score
    • Credit Score Range
  • Credit Repair
  • Credit Reports
    • Credit Inquiries
  • Debt
    • List of Collection Agencies
  • Loans
  • About Us

We hope this template helps you achieve your goals.

Would you please review us?

A review would mean a lot to us — and takes less than 20 seconds. Let us know what you think. Thanks!

Leave My Review

What you’ll get

  • Assess

    Fill in your information and we will securely pull your TransUnion credit report.

  • Address

    We challenge inaccurate negative items with the bureaus and your creditors.

  • Advise

    We will give you advice for how you can improve your credit. Don’t want to wait? Call us now.

Don’t want to wait? Call us!

Monday to Friday, 10AM - 7PM EST

FinanceJar

Get a FREE 5-minute credit consultation.

Get a credit improvement plan that works for you with 1 phone call.

What you’ll get

1
Assess

Fill in your information and we will securely pull your TransUnion credit report.

2
Address

We challenge inaccurate negative items with the bureaus and your creditors.

3
Advise

We will give you advice for how you can improve your credit. Don’t want to wait? Call us now.

This is completely secure and won’t hurt your credit score.

By clicking "Submit" I agree by electronic signature to: (1) be contacted about credit repair or credit repair marketing by a live agent, artificial or prerecorded voice and SMS text at my residential or cellular number, dialed manually or by autodialer, and by email (consent to be contacted is not a condition to purchase services); and (2) the Privacy Policy and Terms of Use.

Don’t want to wait? Call (888) 859-0871 now

FinanceJar

Advertising Disclosure

Some of our articles feature links to our partners, who compensate us when you click them. This may affect the products and services that we showcase in our articles and how we place and order them. It does not affect our evaluations of them, which our writers and editors create independently, without considering our relationships with our partners.

FinanceJar

Editorial Standards

We promise to always deliver the best financial advice that we can. That’s our first priority, and we take it seriously.

To ensure that our articles and reviews are objective and unbiased, our writers and editors operate independently from our advertisers and affiliates. Our writers do not take FinanceJar’s relationship with its affiliates into consideration when writing their reviews and articles.

Everything we publish is as accurate and as complete as we can make it. All of our articles undergo several rounds of fact-checking before we publish them, and we do our best to keep them as no-nonsense and jargon-free as possible while still delivering the information that you need.

We know that taking financial advice from us requires a lot of trust on your part. We’re grateful for that trust, and we won’t abuse it. Learn more about our editorial standards.

FinanceJar

How We Make Money

FinanceJar partners with other companies in the credit and finance industry, such as credit card issuers and credit repair companies.

We make money through advertising. Our pages feature links to our partners’ websites. If you click on one of those links, we get paid.

The links to our partners are always clearly marked. You’ll always be able to tell what you’re clicking. We’ll never try to trick you into clicking anything you’re not genuinely interested in.

That’s the only way that we make money. We don’t accept compensation in exchange for reviews or articles, and we don’t directly sell any products or services ourselves. Our editorial team operates independently (with no influence from our affiliates or our advertising team) so as to avoid compromising the objectivity of our reviews. Learn more about how we make money.