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You may be curious and want to know, What bills help build credit?
Find out how with this guide.
What Does It Mean to Build Credit?
Building credit benefits you because you will have a history that shows you pay your bills on time.
It also means you could rent an apartment without needing a cosigner.
Working toward building credit and creating a positive credit history means you will likely get lower interest rates.
Also, remember, payment history makes up 35% of your credit score.
What Bills Help Build Credit Automatically?
There are some bills that automatically get reported to thecredit bureaus.
These payments can benefit your credit history, especially if you make them on time.
There are services that can make rent payments, utility and phone/internet bills count.
Streaming services can also be added to count toward your credit history.
To get credit for those payments, you will have to use a rent reporting service.
How Does a Rent Reporting Service Work?
Most utility and phone companies dont report payments.
The only way these payments are reported is if you do not pay them.
Unpaid and missed payments may push your account into collections.
To get credit for on-time payments, you could use Experian Boost.
This service links to your bank account and tracks payments for utilities, phone and streaming services.
Bills That Do Not Help Build Credit
There are some bills that do not impact your credit.
Best Practices to Use Bills to Build Credit
What can you do to build credit?
How you build your credit is largely in your hands.
Late payments will hurt yourcredit score.
Sign Up for Reporting Tools
Some bills arent automatically counted.
Utilities, phone and internet bills, and rent payments arent included in your credit history.
However, it’s possible for you to change that by signing up for reporting tools like Experian Boost.
you could check your credit report every year for free withAnnualCreditReport.com.
Consider using a service that tracks and reports these payments on your behalf.
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