Does Credit Affect Getting Utilities in Your Name?

When you move to a new home, you must typically put the utilities, such as water, sewer, cable and telephone, in your name. Even though utility companies don't loan you money, most of them still check your credit report. If you have a history of missed or late payments, utility companies may refuse to grant you an account.

Utility Credit

According to the Federal Trade Commission, utility companies extend utility credit to consumers of gas, electricity, water and other services. The FTC considers utility accounts credit-based because you typically receive services before you pay for them. Because utility companies must trust that you will pay these bills in full and on time, they may require you to pass a credit check before opening an account.

Process

When you transfer a utility account or open a new one, most companies will collect several pieces of information from you, including your Social Security number. They use this information to check your credit history. If you have made late utility payments in the past, the company may deny your account or ask you to pay a security deposit. It may also ask you to provide a cosigner with better credit who agrees to pay the bills if you default.

Spousal Credit

If your spouse has a bad utility credit history, the utility company may deny your account, require you to pay a deposit or ask you to provide a guarantor. However, if your spouse has a good utility credit history, the utility company must regard your history as the same as his even if the accounts weren't in your name.

Discrimination

Utility companies can't discriminate based on sex, race, religion, age, marital status or national origin. They also can't discriminate against individuals receiving public assistance. Utility companies can only require a customer to pay a deposit if it is a policy for all new customers, or if the customer has a bad utility credit history. If you can show that a utility company has denied you service or asked you to provide a deposit on a discriminatory basis, the company may incur a penalty.