Building credit isn’t only about loans and credit cards. Many everyday bills you already pay—like rent, phone, or utilities—can help strengthen your credit profile when handled wisely. The key is understanding which bills actually count toward your credit score, how to make sure they’re reported, and how to use them strategically.
This guide breaks down which bills can help you build credit, how to report them properly, and common mistakes to avoid if you want to improve your financial standing.
Why Building Credit Matters
Your credit score affects nearly every aspect of your financial life. It determines whether you can:
- Get approved for loans, credit cards, or mortgages
- Qualify for better interest rates
- Rent an apartment without a co-signer
- Avoid higher insurance premiums or deposits
A strong credit score shows lenders that you’re financially responsible. But if you’re new to credit or rebuilding after past issues, traditional methods like credit cards might feel risky. That’s where alternative credit-building options—like using certain bills—come in.
Which Bills Can Help Build Credit
Not all bills are automatically reported to credit bureaus. However, several types of recurring payments can boost your credit score when reported through the right channels.
1. Rent Payments
Rent is one of the most consistent monthly expenses, and it can be a powerful credit-building tool.
- How it helps: On-time rent payments show lenders that you can manage large, regular payments responsibly.
- How to report: Services like Experian Boost, RentTrack, or Rental Kharma can report rent payments to credit bureaus on your behalf.
- Tip: Ask your landlord if they work with any rent reporting programs—some property management companies already use them.
2. Utilities (Gas, Electric, Water, Internet)
Your utility bills are essential for daily living, but they typically aren’t included in your credit history unless you take specific steps.
- How it helps: Paying these bills consistently and on time demonstrates financial responsibility.
- How to report: Tools like Experian Boost or eCredable Lift can include your utilities in your credit report.
- Caution: If you miss payments, your account could eventually go to collections—negatively affecting your score.
You might wonder, do utility bills affect credit score? Normally, they don’t—unless you opt to have them reported through credit-building programs or, conversely, fail to pay them and they end up in collections.
3. Cell Phone Bills
Your phone bill can also play a role in credit building when properly reported.
- How it helps: Monthly payments are predictable and can show long-term reliability.
- How to report: Many carriers don’t report directly, but Experian Boost or Self can include phone payments in your credit data.
- Pro Tip: If you’re financing a new phone, those installment payments are often reported automatically, helping your score over time.
4. Streaming Services and Subscriptions
Yes—even your Netflix or Spotify account can contribute to your credit history if you use certain programs.
- How it helps: Regular, on-time subscription payments demonstrate consistency.
- How to report: Platforms like Experian Boost can track payments for eligible services linked to your bank account.
- Example: Paying for multiple subscriptions through one account can generate a steady history of small, reliable payments.
5. Credit Builder Loans
While not a traditional “bill,” credit builder loans are an excellent way to grow your credit using predictable monthly payments.
- How it works: You make fixed payments toward a small loan held in a secured account. Once the loan is repaid, you receive the money—and the payment history boosts your credit.
- Where to find them: Many local credit unions and online platforms like Self or CreditStrong offer them.
- Why it works: These loans build a record of timely payments, one of the biggest factors in your credit score.
6. Student Loan Payments
If you have student loans, you already have a credit-building opportunity—provided you pay on time.
- How it helps: Each on-time payment contributes positively to your payment history.
- What to avoid: Missing payments or defaulting can have a severe, long-term negative impact.
- Tip: Setting up autopay can help prevent accidental missed payments.
7. Auto Loan Payments
Like student loans, car loans report directly to credit bureaus. Paying them consistently is one of the most effective ways to establish and maintain good credit.
- How it helps: It demonstrates that you can manage long-term debt responsibly.
- Tip: Even one late payment can cause a credit score drop—so schedule reminders or automatic transfers.
8. Credit Card Bills
While obvious, credit cards remain one of the most powerful tools for building credit.
- How it helps: Responsible use—keeping balances below 30% of your credit limit and paying on time—shows excellent financial discipline.
- What to avoid: Carrying large balances or missing payments can quickly damage your score.
- Pro Tip: If you’re new to credit, start with a secured credit card to build a history safely.
How to Get Bills Reported to Credit Bureaus
If your bills don’t automatically impact your credit score, you can take action to make sure they do. Here’s how:
1. Use Credit-Reporting Services
Programs like Experian Boost, eCredable Lift, or LevelCredit let you connect your bank account to automatically track and report eligible payments—like utilities, rent, and phone bills.
- Pros: Quick and easy to set up
- Cons: Not all bills are eligible, and only certain bureaus receive reports
2. Ask Service Providers About Reporting Options
Some landlords, utility companies, and telecom providers offer their own reporting partnerships. Ask whether they can report your payments directly to credit bureaus.
3. Monitor Your Credit Report
Regularly check your credit report (from AnnualCreditReport.com) to ensure the right accounts are being reported and that all information is accurate.
Common Mistakes That Hurt Credit-Building Efforts
Even if you’re paying bills responsibly, certain habits can hold you back from improving your credit score.
Avoid These Pitfalls:
- Late or missed payments: Even one late payment can hurt your score for years.
- Closing old accounts too soon: This can shorten your credit history and lower your score.
- High credit utilization: Keep credit card balances under 30% of your limit.
- Ignoring small debts: Unpaid bills, even small ones, can end up in collections.
- Not monitoring your credit: Errors on reports can lower your score without you realizing it.
How Long It Takes to See Results
Credit-building takes time—it’s a long-term commitment, not an overnight fix.
- 1–3 months: You may start seeing small changes if your payments are newly reported.
- 6–12 months: Consistent payments can significantly strengthen your credit history.
- 12+ months: A solid year of on-time payments establishes lasting credibility with lenders.
Remember, the most influential factor in your credit score is payment history, which makes up 35% of your total score. The more months you show consistent reliability, the better.
The Smart Way to Build Credit with Bills
To get the most benefit from your bills:
- Pay on time—every time. Automate payments whenever possible.
- Use reporting services strategically. Focus on recurring, stable bills like rent and utilities.
- Track progress. Review your credit report quarterly to confirm positive changes.
- Avoid unnecessary credit inquiries. Too many applications can temporarily lower your score.
By using your existing bills to your advantage, you can gradually turn routine payments into credit-building opportunities—without taking on risky debt.
The Bottom Line
Building credit doesn’t have to mean opening new accounts or borrowing large sums. Many of the bills you already pay—like rent, utilities, or your phone plan—can help you establish a strong credit history when reported correctly.
The key is consistency. Pay every bill on time, monitor your credit report, and use modern tools that connect everyday payments to your credit score.
With patience and good financial habits, you’ll not only build better credit—but also gain access to more financial freedom and stability in the future.