Do Utility and Phone Bills Build Credit?

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If you've paid the electric bill and the phone bill on time for years, it feels like that should count for something. For most people, it doesn't show up on a credit report at all.

Why they usually don't report

Credit reports are built from information that lenders and other "furnishers" choose to send to the credit bureaus. Credit cards and installment loans do it routinely. Many utility and telecom companies don't, because they aren't lenders and sending monthly data takes work. Your on-time payments just sit in the company's own records.

That's the same reason a debit or prepaid card builds nothing and why rent only helps if it gets reported.

The catch: late bills can show up

Here's the unfair part. On-time payments generally stay private, but an unpaid utility or phone bill can still end up on your report. If the company sells or hands the debt to a collection agency, the collection account can be reported and can hurt your score. That's a different path from the original bill, and we cover how it plays out in how a collections account affects your score over time.

If you've already moved out and left a final bill unpaid, check your report for it. You can get free reports from the three bureaus at AnnualCreditReport.com, as described by the FTC.

Opt-in options that can add the good side

Some services let you add on-time payment data yourself. These are optional and work differently, so check the details before you sign up:

Bureau-run programs. Some let you connect a bank account so recurring bills like utilities and phone service can be added to your file. Because these are tied to one bureau's data, they may not show up in the other two, or in every scoring model a lender uses.
Rent and bill reporting services. These may report to some or all bureaus, and some charge a fee.

Ask any program three things: which bureaus get the data, which bills qualify, and what it costs. We explain why bureau coverage matters in why your first account should report to all three bureaus.

Be realistic about the size of the effect. If you have no history at all, adding payment data can help a lender see something. If you already have an account reporting, the added benefit may be small.

Will a utility company check your credit?

Often, yes. Some utility and phone companies run a credit check when you open service. If your file is thin or has marks, they may ask for a deposit instead of turning you away. A deposit isn't a credit account, and getting it back doesn't build history either.

If the check is a hard inquiry, it can appear on your report. Ask beforehand whether they pull your credit and whether it's a soft or hard pull.

What actually builds history

Reporting accounts do the work: a credit-builder loan or a secured card paid on time, kept at a low balance. Utility and phone bills can be a useful supplement if you pick a program with eyes open, but they shouldn't be your whole plan.

Wherever you're starting

Pay the bills on time anyway, since a collection is what hurts. Don't expect them to build your score by default. When you're ready to compare accounts that do report, you can see options that fit where you're starting →.