What Bills Help Build Your Credit?

You probably know that skipping bill payments can drop your credit score. The reverse is also true—paying your bills on time can positively impact your credit.

But that’s only true when creditors or others report to the credit bureaus. Find out what bills help build your credit—or potentially harm your credit.

What Bills Affect Credit Score?

– Rent payments – Utility bills – Cable, internet or cellphone bills – Insurance payments – Car payments

Bills Commonly Reported To Credit Bureaus

In general, car payments, mortgage payments, student loan payments and credit card payments are often reported to the bureaus.

Payments Not Always Reported To Credit Bureaus

That includes regular payments you make for rent, insurance or services such as utilities, cellphones, internet or cable.

Reporting Only Late Payments

Some lenders and service providers only report to the credit bureaus if you’re late with your payments.

Payments That Don’t Ever Make It To Your Credit Report

When you owe municipal fees such as library fines and parking tickets, those accounts don’t generally make it to your credit report. Neither do tax liens or civil court liens.

When Late Payments Become Collections

Even if your payments aren’t usually reported, a creditor might turn you over to collections if you fall behind on your bills.

The Importance Of Paying On Time

Your payment history accounts for 35% of your credit score. It’s the biggest factor in whether that number rises or falls.

You Can Build Your Credit—It’ll Just Take Time

Also remember that building your credit is completely doable, but it might take some time. Be patient—pay your bills on time and in the meantime, try a few other methods to bump up your credit.