One of the best ways to keep your credit score healthy is by paying your bills on time. That said, it is important to know that most bills payments you make every month have no direct impact on your credit score. For a payment to either positively or negatively impact your credit score, it has to be reported to the credit bureaus, namely Equifax, Experian, and TransUnion. And, most companies to which you make monthly payments don’t do this.
Bills That Are Not Reported To Credit Bureaus:
Utility Payments
Credit bureaus do not receive records of your utility bill payments. So, while it is recommended that you pay your utility bills on time to keep your home in working condition, it’s not going to affect your credit score. Keep in mind that if you skip paying your utility bills altogether, the company may have a debt collector contact you. This could, then, affect your credit score.
Insurance Payments
A number of people have auto and health insurance policies for which they pay out of their pockets. A common misunderstanding is that insurance premium payments affect your credit score. The thing is, insurance companies do not report late payments or payment defaults to credit bureaus. However, you may be charged a penalty if you don’t pay your premium or coverage may be withheld by the insurance company.
Medical Bills
Bills from healthcare or medical providers are not normally recorded by credit bureaus. So, you don’t have to worry if you paid your medical bills a few days late. That said, if you skip paying the bill, your healthcare provider could get a collection agency involved, which can then affect your credit score.
Cable Service
If you delay paying your cable or internet bills, it won’t necessarily affect your credit score. However, you will not be able to continue streaming your favorite movies or shows. Like in the case of utility bills, service providers may refer your case to a collection agency if you don’t pay your bills at all.
Cell Phone Payments
Credit bureaus also don’t get records of your cell phone payments. However, if you don’t pay them. you can expect your service to be shut off. Leaving your cell phone bills unpaid for a long time or repeatedly may prompt your service provider to sell your case to a collection agency to cover the amount.
Gym Or Health Club Memberships
Millions of Americans have a gym or healthcare membership. If you’ve used the services of a gym or health club, you should ideally pay the due amount at the end of the month. Your gym fees are a recurring bill and while delaying your payment by a few days won’t affect your credit score, your gym or health club can send your account to a collection agency.
Remember that while delaying certain bill payments may not have a direct effect on your credit score, it is best to pay the bill on time to avoid getting penalized or contacted by a debt collection agency.