Which Bills Help Build Credit?


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22 April 2020

Everyone knows that paying certain bills on time makes a big score impact. But what’s the nitty gritty here? What bills really help build credit?

Everyone wants to build their credit score. A good score – defined by Credit Karma as anything above about 670 – helps with all of life’s major financial moments. Everyone knows that paying certain bills on time makes a big score impact. But what’s the nitty gritty here? What bills help build credit?


Bills that DO help build credit:

  • Car Payments 

Any payment you make to auto lenders directly impact your credit score. Once you have taken out a loan or a lease on a car, the lender will report your payments to the credit bureaus. If you miss even one payment by several days, this could reflect negatively on your credit score. 


  • Mortgage Payments

What bills help build credit? This is one of the big ones. Just like auto loans, mortgage loans are tracked monthly, and any information about late payments are submitted to credit bureaus. Again, any late payments will damage your credit scores. If you miss mortgage payments for several months, you risk foreclosure, which has a lasting negative impact on your credit.


  • Student Loan Payments

If you're using federal student loans to pay for college, you have already taken advantage of one of the few times a credit check isn't required to get a loan. However, repaying these loans will be a critical part of your credit history. Though you don't have to start paying off your student loans while you're still in school, there's usually only a six-month grace period after graduation before you have to start paying off your student loans. You could easily miss that first payment and damage your credit score right out the gates if you're not careful. And past the six month, any missed repayments will start hurting your credit score. Remember: It’s possible to start building your credit score when you’re still in college.


Bills that DO NOT help build credit:

  • Auto and Health Insurance Payments

Many people pay health insurance payments out of their own pocket every month. Many people also for auto insurance. These bills, though, are not regularly reported to credit bureaus. (Though insurance companies sometimes charge fees or higher rates if you don't pay on time.)


  • Cable and Internet Bills

Cable and internet bills, even if unpaid, will not damage your credit score. Only unpaid bills that are sent to collections will have an impact. ]


Bills that CAN help build credit:

  • Rent and Utilities Payments

Less than 1% of Americans see rental payment history in their credit report. But reporting rent payments can have a big positive impact on your credit score. So too can reporting utilities payments. 

However, your rent payments won’t be reported automatically. You need the help of a “data furnisher” like LevelCredit.LevelCredit will apply the rent and utility payments you're making to your credit file, so you can really build your credit score.

Your credit score impacts every area of your finances, from credit cards and loans to insurance and deposits. But at a deeper level, your credit score can impact your sense of wellbeing and security. The average increase of 20+ points that LevelCredit user's first see, can help give you and your family the freedom to live life the way you want.

Learning what bills help build credit is a big part of lifting your credit score. And a better credit score has myriad positive benefits throughout your life. To learn more, read our blog on simple ways to boost your credit scores.


Get you the credit you deserve. Try LevelCredit now.