Do Utilities Report to the Credit Bureaus?

An easy way to improve your consumer credit score is to establish a history of paying your utility bills on time and at the full amount requested. Your utility company is eligible to report bill payment history to the three major consumer credit bureaus, TransUnion, Equifax and Experian.

Identification

According to a consumer alert published by the Michigan Public Service Commission, "A utility company is a creditor eligible under federal guidelines to report bill payment histories of its customers to credit reporting agencies." However, not all utility companies exercise this right. Some only report utility credit history for those customers with delinquent accounts. Contact your local utility provider and ask about the company's policy regarding how it reports your bill payment history to the credit bureaus.

Time Frame

Like any other creditor, a utility company reports credit history either as activity occurs on an account or according to a pre-determined schedule, such as at the end or the first of the month. Utility companies have different practices regarding how and at what frequency payment information is provided to credit reporting agencies.

Benefit

The benefit of having your utility credit payment history appear on your consumer credit file is the boost it gives to your consumer credit score. Every time you make an on-time payment, your credit score improves. If, on the other hand, you miss payments or pay less than the required amount, your consumer credit score drops.

Warning

Failure to pay a delinquent utility bill could result in a collection account. Collection accounts remain on your consumer credit report for up to seven years and are reported as a potentially negative item. In addition to reporting a collection account on your consumer credit report, a utility company can also bring legal proceedings against you for unpaid bills. If a civil court judge rules against you, a judgment for the debt amount will appear on your consumer credit report for seven or more years depending on your state of residence.