Does Paying Utility Bills Build Credit?

Utility bills are not typically reported to credit bureaus. However, you may be able to use a third-party service to report them.

Perhaps you don’t have much in the way of traditional credit (like loans and credit cards) and you want to find another way to build credit. You have monthly bills — rent, utilities, internet, phones and subscriptions — and you pay them on time. So you may want to get credit for your positive payment history.

This article discusses how utility payments can affect your credit (both positively and negatively), whether you can use your utility bills to build credit and other ways to lift your credit score.

Table of contents

• Does paying utility bills help build your credit?
• Can utility bills hurt your credit score?
• How to use utility bills to build your credit
• What bills are automatically reported to the credit bureaus?
• Other ways to build your credit
• Building your credit

Key points

• Paying utility bills generally doesn’t build credit on its own because most utility providers don’t report on-time payments to the major credit bureaus, so those payments don’t appear on a credit report.
• Utility bills, cell phone bills, and rent can help build credit only when a third-party reporting service is used to add positive payment history to a credit report, since these bills aren’t automatically reported.
• Missed utility payments can still hurt your credit if the account is sent to collections, because collection accounts may appear on a credit report and negatively affect your credit score.

Does paying utility bills help build your credit?

Utility companies generally don’t report positive payment history to the three major credit bureaus (Experian, Equifax and TransUnion).^[1]

However, you can choose to add your payment activity to your credit report by signing up for third-party credit reporting services.

Can utility bills hurt your credit score?

Missing payments on your utilities and defaulting on your payments altogether can cause your account to end up in the hands of a collection agency, as a collection account. ^[1]

The single largest factor in your FICO® credit score is payment history which makes up 35% of your score. ^[2] Suppose you miss payments and your utility account becomes delinquent and is charged off, utilities could impact your credit. In that case, these negative marks may appear on your credit report and impact your score in a negative way.^[2]

How to use utility bills to build credit

Because utility bills won’t automatically appear in your credit file, we will show you a few ways to submit your positive payment history to the credit reporting agencies.

Consider a third-party reporting service

To receive credit for on-time bill payments, you may consider using a third-party reporting service that adds positive payment history to your credit file.

Self’s Rent and Bills Reporting subscription at $6.95 per month reports positive rental, utility and cell phone payments each month to the credit bureaus. Rent payments are reported to Equifax, Experian and TransUnion, and utility and cell phone bills can be reported to TransUnion. There's no credit history required and no hard pull.

Pay your utilities with a credit card

Many service companies allow you to pay bills — cell phone, internet, waste management even rent — with a credit card. While not exactly the same as reporting your utility bills to credit bureaus, on-time credit card payments can have a positive impact on your credit.^[2] However, paying bills with your credit card has a few potential downsides.

Credit card payments on utilities may come with convenience fees where you get charged extra by the vendor because you use a credit card for payment. In addition, if you spend a high percentage of your credit limit, you risk pushing your credit utilization ratio (CUR) too high.^[3] If you aren’t sure you can pay the credit card balance in full each month, you'll likely accumulate interest charges and open yourself to credit card debt.

Weigh the pros and cons before paying your bills with a credit card. While it can help pay your bills right away, it could impact your (CUR) depending on how much you owe on the bill. Your CUR impacts your amounts owed category, which makes up 30% of your FICOⓇ score. Your CUR offers creditors an idea of how you manage your finances and credit. Keeping balances on your credit cards close to your credit limits may indicate to lenders that you’re having a difficult time keeping up with your various financial obligations each month.^[3]

What bills are automatically reported to the credit bureaus?

The types of accounts that traditionally appear in credit reports are installment loans like mortgages and student loans, and revolving credit accounts, such as credit cards and home equity lines of credit (HELOCs). For that reason, responsibly managing these types of accounts can help you build credit. Of course, making late payments, becoming delinquent, or having a high credit utilization rate on revolving accounts can hurt your credit score.^[4]

Other ways to build your credit

While reporting your utility payments to the credit bureaus may bump up your credit score, you may also find the following strategies useful for building credit.

Pay all your bills on time

Since payment history counts for over a third of your FICO® score, paying your bills on time forms the foundation of healthy credit. If you find yourself in danger of getting off track, you may want to get in touch with a non-profit credit counseling service or even contact your creditors to see if they will work with your situation.^[2]

Consider a credit builder loan

If you have poor credit or no credit at all, credit builder loans can help you grow your credit. Taking out a credit builder loan helps you to build credit history, but it works differently from traditional installment loans. A credit builder loan is designed to help you build credit while growing your savings. When you open the account, the loan amount is placed into a secured savings account or certificate of deposit (CD). You then make fixed monthly payments toward the loan.

Your payment activity is reported to the three major credit bureaus, so making on-time payments may help you build credit history. Once the loan is paid in full, you receive the money back, minus interest and fees.

Self offers a Credit Builder Account that follows this model. The loan amount is held in a certificate of deposit, while you make fixed monthly payments, and your payment activity is reported to Equifax, Experian, and TransUnion. Once the loan is paid in full, you receive the money back, minus interest and fees.

Consider a secured credit card

If you don’t have a good credit score, you might find it difficult to qualify for a credit card or other traditional forms of credit. Individuals with no credit or low credit scores could consider a secured credit card. A secured credit card is often designed to help you build credit and may be easier to qualify for than some traditional credit cards. To open an account, you apply and once approved you provide a refundable security deposit, which typically becomes your credit limit.

As you use the card and make on-time payments, your activity is reported to the three major credit bureaus, which may help you build credit history. When choosing a secured card, check for fees and confirm that the issuer reports to all three credit bureaus.

Self offers a secured credit card, which can help you build credit through on-time payments and responsible use.

As always, remember to read the fine print: look out for hidden fees or excessive interest charges and make sure the card issuer reports to all three of the major credit bureaus.^[5]

Become an authorized user

One of the simplest ways to get started on your credit journey — especially if you don’t have much of a credit history — is to become an authorized user on a friend’s or family member’s credit card. This strategy doesn’t tend to impact your credit score as much as opening your own account, but it may help if you can’t qualify on your own.

Just remember that your credit score may rise and fall along with the primary cardholder’s. If they have an account in good standing, low credit limit in relation to available credit and make on-time payments, being an authorized user could better your credit score. If they default on the account, however, your credit score may suffer alongside theirs.^[6]

Building your credit

As you research how to build credit, keep in mind that good credit always starts with following general good credit habits. If you pay your bills on time, keep your credit utilization low, get back on track after making late payments and pay down any remaining debt, you’ll help lay a solid foundation of good habits that may positively impact your credit score.

*Results vary. You may not receive an improved credit score. Not all lenders use scores impacted by rent/utility payments.

Sources

1. Consumer Financial Protection Bureau. “Does my history of paying utility bills like telephone, cable, electricity, or water go in my credit report?” https://www.consumerfinance.gov/ask-cfpb/does-my-history-of-paying-utility-bills-like-telephone-cable-electricity-or-water-go-in-my-credit-report-en-1817/. Accessed January 29, 2026.
2. MyFICO. “What is Payment History?” https://www.myfico.com/credit-education/credit-scores/payment-history. Accessed February 10, 2026
3. MyFICO. “What Should My Credit Utilization Ratio Be?” https://www.myfico.com/credit-education/blog/credit-utilization-be. Accessed February 10, 2026
4. Experian. “What Kinds of Bills Affect Credit Scores?” https://www.experian.com/blogs/ask-experian/what-kinds-of-bills-affect-credit-scores/. Accessed January 29, 2026.
5. Experian. “What Is a Secured Credit Card?” https://www.experian.com/blogs/ask-experian/what-is-a-secured-credit-card/. Accessed February 10, 2026.
6. Experian. “Credit Card Authorized User: What You Need to Know” https://www.experian.com/blogs/ask-experian/what-is-credit-card-authorized-user/. Accessed February 10, 2026.

About the author

Ana Gonzalez-Ribeiro, MBA, AFC® is an Accredited Financial Counselor® and a Bilingual Personal Finance Writer and Educator dedicated to helping populations that need financial literacy and counseling. Her informative articles have been published in various news outlets and websites including Huffington Post, Fidelity, Fox Business News, MSN and Yahoo Finance. She also founded the personal financial and motivational site www.AcetheJourney.com and translated into Spanish the book, Financial Advice for Blue Collar America by Kathryn B. Hauer, CFP. Ana teaches Spanish or English personal finance courses on behalf of the W!SE (Working In Support of Education) program has taught workshops for nonprofits in NYC.

About the author

Becca has over 10 years of experience as a content writer, working across various industries including finance, digital marketing, education, travel, and technology. Her work has been featured in publications including Forbes, Business Insider, AOL, Yahoo, GOBankingRates, and more.