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Boost Your Credit Score with Utility Bill Payments

Utility bills are a regular part of life, but did you know they can also help improve your credit score? At O1ne Mortgage, we want to help you understand how paying your utility bills on time can positively impact your credit. For any mortgage-related needs, feel free to call us at 213-732-3074.

Are Utility Bills Reported to Credit Bureaus?

Typically, utility companies do not report your payment history to the credit bureaus like Experian, TransUnion, and Equifax. However, services like Experian Boost® can integrate your utility bill payments into your credit score, giving you credit for on-time payments.

How Paying Utility Bills Can Boost Your Credit

Experian Boost scans your credit card and bank account histories for on-time utility bill payments, as well as eligible rent and streaming service payments. If it finds on-time payments, it adds them to your Experian credit report, which can improve your FICO® Score. This feature only adds on-time payments, so late payments won’t negatively affect your score.

Steps to Set Up Experian Boost

1. Sign up for Experian Boost for free on Experian’s website.
2. Provide your personal details like name, date of birth, and email.
3. Connect your credit card and/or bank accounts that you use to pay your bills.
4. Verify the payments Experian Boost finds, and choose whether to add them to your credit file.
5. Check whether your FICO® Score has increased. Many users see an immediate increase, with an average boost of 13 points.

What Utility Bills Qualify for Experian Boost?

The following utility bills are eligible for Experian Boost:

• Mobile and landline phone
• Internet
• Cable and satellite
• Gas and electricity
• Video streaming services
• Water
• Power and solar
• Trash

Rent payments can also be included if you’ve made at least three payments within six months, with one payment occurring in the last three months.

Will Lenders Use My Experian Credit Score?

It’s uncertain which credit score a lender will use. Since Experian Boost only affects your Experian credit report, utility bill payments won’t influence scores based on Equifax and TransUnion data.

Can Utility Bills Hurt My Credit?

Unpaid utility bills can be sent to collection agencies if you miss multiple payments or leave a bill unpaid for months. This can result in a charge-off or an account in collections, both of which can stay on your credit report for seven years and hurt your credit score. Additionally, the National Consumer Telecom & Utilities Exchange (NCTUE) shares customer data among its members, which can affect your ability to get services from other providers.

The Bottom Line

Utility payments are unavoidable, but you can use them to your advantage. Experian Boost can help improve your Experian credit scores if you have enough on-time payments. Additionally, Experian’s BillFixer tool can negotiate with your utility providers to lower your monthly bills.

For any mortgage-related needs, call O1ne Mortgage at 213-732-3074. We’re here to help you navigate your financial journey with confidence.

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