How to Apply Utility Payments to Improve Credit Rating

Utility payments are usually not factored into credit reports unless the bills become delinquent. This is because the utility companies don't bother reporting customers to the credit bureaus because of the hassle of doing so. Despite this, if you request it from the utility company, you can get a current account reported to the bureau. It's just a matter of making it worth the company's time to report your account. Such accounts in good standing can improve your credit rating, but only if the utility company consents to report to the bureaus.

Instructions

1

Request copies of your credit report from the three major credit bureaus (Transunion, Equifax, and Experian). You can acquire your credit report either online or on paper by visiting the websites of the credit bureaus and following all posted instructions. You're also entitled to one free credit report per year from each bureau so long as you have a valid social security number. Follow the link to the Annual Credit Report web page in the resources below for more information on how to get it. Look at your credit reports to determine if your utility accounts have already been reported. Utility accounts in good standing can build up your credit history, improving your chances of winning approval for loans and credit cards.

2

Contact your utility company using the phone number on your bill and request that it begin reporting your current account to the credit bureaus. All utility companies have accounts with the credit bureaus, so it doesn't necessarily cost them anything extra to do so. Some companies will provide the service as a courtesy to an existing customer, while others will request a fee for reporting the account. You can get electricity, water, heating, and other utility bills reported to the agencies. There are some third-party companies that can perform this service for you, but it's relatively simple to make the reporting request yourself.

3

Monitor your credit report for the new account by ordering a new report at least 30 days after your request for utility bill reporting has been accepted. Check to make sure that the bill payments have been reported accurately. Utility bills in good standing will not have a massive affect on your credit score, but the information builds the length and quality of your credit history. If you have a "thin" credit history (approximately less than 10 credit entries on your report), this technique can make you more attractive to lenders.