Learn How To Repair Bad Credit Using Utility Bills!

How to Repair Bad Credit

We can show you how to repair bad credit. Paying your utility bills late can hurt your credit score.

That statement was one of the biggest myths about credit repair for many years. Some consumers believed that paying their utility bills on time every month would boost their credit scores, but that wasn’t true.

Until recently, utility bills were never reported to the credit agencies unless an account was closed and placed in collections.

Today, that statement is still untrue, but there is a way to use your on-time utility bill payments to boost your credit score.

It may not make a dramatic difference for every consumer, but it does substantially impact select people. Let’s dig into the details so you can determine whether this credit repair trick is worth your time.

Utility Bills and Your Credit Score

Utility Bills and Your Credit Score

Utility bills are not automatically added to your credit report. 

Whether you pay your bills on time every month, occasionally have to pay late, or are always late, your credit report will never reflect that information without your approval. You don’t have to panic if you need to request an extension for your electric bill.

How to repair bad credit with this method is when you voluntarily allow the credit agencies to access your bank account to verify that you pay your utility bills on time every month.

These programs are becoming more popular with responsible consumers who want to benefit from their history of paying bills on time.

If you sign up for a credit boosting program that utilizes utility bill payments, you can expect the following:

  • You authorize the program to access your bank account or another applicable account. An automated system will scan your account for on-time bill payments that are then reflected on your credit report.
  • That authorization doesn’t give the reporting agency the power to withdraw money from your account. They cannot take over your account or do anything beyond collecting information about payments to your utility companies. There’s always some risk when you give a third party any level of access to a bank account, but the risk exposure is low here.
  • Every on-time payment reported has the potential to boost your credit score and will enhance your financial reputation with lenders. There is no guarantee of how many points your score will gain, and that boost may happen one time.
  • Late payments will not go on your credit report and will not lower your score. There are only benefits to these programs.
  • You should have the ability to pre-approve all payment information before it is placed on your credit report. If you don’t want anyone to see it, you can decline to add it to your credit report.
  • It would be best if you never had to pay for a credit boost with your utility bills. There’s only one legitimate program offering this service, and it is FREE.

How to Repair Bad Credit Quickly with Your Utility Bills

Only one reputable program can legitimately add your utility payment history to your credit report: Experian Boost. You can learn how to repair bad credit using its service. It’s managed directly by Experian and will report to all three credit agencies.

It’s completely free, and you will receive free access to your Experian credit report while you’re enrolled. That means you can check your credit report as often as you want without a fee, and that doesn’t include your credit score.

Don’t fall for scams offering to provide this service for a fee or through another agency or company. Go directly to Experian and do it for free while protecting your financial information.

Can You Raise Your Credit Score by Paying Utility Bills on Time?

If one or more of these statements apply to you, then there’s a chance adding your utility bills to your credit report could boost your score to some degree.

I was wondering how to repair bad credit with this method?

  • You need to pay your utility bills on time every month, or at least most months.
  • You don’t have many open lines of credit on your credit report. You’re interested in adding volume to your credit report without applying for more credit cards.
  • You don’t have a variety of credit types on your credit report. For instance, you may have five credit cards but no auto or home loans.
  • Your credit score needs a good boost as quickly as possible.

If you already have a high credit score, a mix of credit types, and a low credit utilization ratio, you may find that your credit boost is minor when signing up for Experian Boost.

It may still benefit you by giving potential lenders more information when determining your required down payment and interest rate for future loans or lines of credit.

This is how to repair bad credit with the most dramatic benefits for consumers who have low credit scores and limited positive lines of credit on their reports.

They may see a quick jump in their credit score once utility bills are introduced, but that score can drop just as quickly if they make late payments on credit cards, default on loans, or have new collections accounts added. Credit scores are constantly changing.

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