How does electric bill affect credit score?

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Rickey Legros asked a question: How does electric bill affect credit score?
Asked By: Rickey Legros
Date created: Fri, Jun 11, 2021 4:55 AM
Date updated: Mon, Jul 11, 2022 9:59 AM

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Top best answers to the question «How does electric bill affect credit score»

Your electricity or gas bill is not a loan, but failing to pay it can hurt your credit score. While utility companies won't normally report a customer's payment history, they will report delinquent accounts much more quickly than other companies you may do business with.

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In the past, utility bills could only hurt your credit score. If you defaulted on your payments, your provider could close your account and enlist a collection agency to obtain payment—negatively affecting your credit report for seven years.

The way that a utility bill can affect your credit is if you stop paying the bill. If you go long enough without paying the bill, the utility company will send your account to collections.

To add insult to injury, having bad credit can also affect a group of basic resources that can be easy to take for granted: utilities. That’s right, even the electricity coming out of your wall could cost more with a bad credit score. Meanwhile, your on-time utility bills are less likely to improve your credit score, even though late payments can further hurt it.

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