How to Report Utility Payments to Credit Bureaus

Utility bills, such as electricity, gas, and water, are a regular part of most household budgets, but paying them on time doesn't automatically build your credit the way paying off a credit card or loan does. That's because utility companies don't typically report payment information to the three major credit bureaus, Experian, Equifax, and TransUnion, unless an account goes unpaid and is sent to collections.

If you consistently pay your utility bills on time, there are still ways to get that history reflected on your credit report. This article explains why utility payments aren't usually included on standard credit reports, the services available to report them yourself, and what to consider before you do.

Key points

• Utility bills typically aren't reported to Experian, Equifax, or TransUnion unless an unpaid account is sent to collections.
• You can use a self-reporting service, such as Self's rent and bills reporting, to add on-time utility payments to your credit file.*
• Reporting utility payments can be especially useful for building a thin credit file, since payment history is the most heavily weighted factor in a credit score.
• *Utility and cellphone payments are reported to TransUnion only.

Which bills are classed as utilities?

Utility bills generally include household services such as electricity, water, gas, telephone, and cable. These are the bills most often discussed in the context of credit reporting, since they're billed on a recurring basis but, unlike loans or credit cards, aren't routinely reported to the three nationwide credit bureaus. ^[1]

Reporting utility payments to credit bureaus

Utility companies generally don't report payment data to Experian, Equifax, or TransUnion the way lenders do for credit cards or loans. Most utility companies don't provide consumer payment history data to the three nationwide credit reporting companies about whether or how regularly you pay on time. ^[1]

There are two main ways utility payment information can end up factoring into your credit profile.

Specialty reporting networks

Rather than reporting to the three nationwide bureaus directly, many utility and telecom companies exchange data through industry-specific networks. The National Consumer Telecom & Utilities Exchange (NCTUE) is one example: it operates as a clearinghouse where dozens of participating telecom, pay TV, and utility companies pool new account and payment data.

Providers in this network can draw on shared payment history to assess risk, such as deciding whether a new customer needs to put down a deposit, but this information generally stays separate from the credit reports issued by Experian, Equifax, and TransUnion. ^[1]

Self-reporting tools

When a provider doesn't report payment history on its own, you can use a third-party service to add that history to your file instead. These tools work by connecting to the bank account or card you use to pay bills, scanning for qualifying on-time payments, and forwarding that data to a bureau. This works in a similar way as a rent reporting service which reports your on-time rent payments to the credit bureaus.

One example is Self’s rent and bills reporting** which, along with rent payments, reports utility and phone bill payments to TransUnion. This service comes with a monthly fee, but can help build your credit score over time.

Missed payments can follow a different path. If a utility bill goes unpaid long enough that it's handed off to a collection agency, that debt can appear on your credit report with any of the three major bureaus, regardless of whether you'd been using a self-reporting tool.

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

Can reporting utility bills help you build credit?

Yes, reporting utility bill payments can help build your credit score. Repayment history carries more weight in your credit score than any other factor, making up 35% of your FICO score. ^[2]
Because utility bills usually aren't part of that calculation in the first place, choosing to report them can give you a way to add positive payment activity to your file beyond what's normally captured from loans and credit cards.

This can be particularly useful if you have a thin credit file or are working to establish credit for the first time. If you don't have many active credit accounts, your file may not contain enough information for a credit score to be calculated at all. Adding a steady record of on-time utility payments through a reporting service may give your file more data points to draw from, without requiring you to open a new loan or credit card account.

Why don’t utility bills usually appear on credit reports?

The way utility accounts are set up and used differs from how traditional credit accounts work, which affects how, and if, they get reported. Most utility companies don't provide consumer payment history data to the three nationwide credit reporting companies about whether or how regularly you pay on time.

One reason for this may be that traditional credit accounts, like loans and credit cards, are built around extending credit, while a basic utility account is typically a service arrangement: you use electricity, water, or gas, and you're billed for what you've used. Reporting that kind of transaction to the nationwide credit bureaus isn't standard practice the way it is for revolving or installment credit accounts.

The exception is unpaid debt. If you fail to pay a utility bill and it's sent to a collection agency, the debt could show up on your credit reports from any of the three nationwide credit reporting companies. In other words, while on-time utility payments generally go unreported under the standard system, the consequences of falling behind can still reach your credit file. ^[1]

Bottom line

While utility payments aren't automatically reported to the credit bureaus, signing up for a self-reporting service can be an option to potentially strengthen a thin credit file. Just be aware that results vary by lender, and unpaid bills sent to collections can still affect your credit regardless of whether you're enrolled.

Sources

1. CFPB, “Does My History of Paying Bills Like Telephone, Cable, Electricity or Water Go Into 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/
2. MyFICO, “What’s In Your Credit Score?” https://www.myfico.com/credit-education/whats-in-your-credit-score

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.