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What Bills Help Build Credit? | Full List With Detailed Information!

Building good credit is important. It can help you get a loan when you need it and also save you money on interest rates.

There are a lot of factors that go into your credit score. But one way to increase your score is by paying your bills on time.

What bills help build credit? There are plenty of bills that can help you build your credit score which I will discuss in this article.

Key Takeaways

  • Bills that help build credit are bills that you pay on time. These bills can be rent payments, utility bills, or credit cards.
  • They also show longevity (because the longer an account is open, the better your score).
  • In general, you want to pay your bills on time and not miss any. That way, you'll build good credit history over time.
  • Bills are one of the most important things you can have on your credit reports because they show that you are responsible with money and that you pay your bills on time.

What is a Credit Score?

Your credit score is a three-digit number that lenders use to determine your creditworthiness. It's based on the information in your credit reports, which list your borrowing history.

A high score means you're a reliable borrower and can get approved for loans at more favorable interest rates. On the other hand, low scores can make it difficult to obtain car loans, mortgages, and other types of credit.

Credit score on a mobile phone


What Makes a Credit Score?

The FICO score which stands for the Fair Isaac Corporation, the creator of the most widely used credit scoring system is based on five factors:

  • Payment history 35%
  • Amounts owed 30%
  • Length of credit history 15%
  • The types of accounts you have 10%
  •  Recent credit activity 10%

The best way to build a great credit score is by paying your bills on time and never missing on a payment. If you have bad credit, it can take years to build up a strong score again.

Payment History

Payment history makes up 35 percent of your FICO score and is used by lenders to determine whether or not they will approve your application.

Man paying with a credit card


If there are any late payments on your record, it may indicate that you have trouble managing money or that there are other financial problems in your life that could cause problems with repayment. Payment history includes how often you pay or miss a payment, and if you make payments on time, just to name a few.

Amounts Owed (30%)

The amount of debt you have is considered by lenders while applying for a loan or credit card. Maxing out your credit cards and high balances will lower your credit scores. The vice versa is true, small balances of loans will increase your credit scores.  

Length of Credit History (15%)

This indicates how long you have had active accounts with a particular lender. The longer it has been since you opened an account with a specific lender and have been paying your loan on time, the better it is for your score.

Credit history on a mans phone


The Types of Accounts You Have (10%)

It shows how many types of accounts you have opened with different lenders and how much balance you hold on each account separately. Having different accounts such as home loans, credit cards, and auto loans improves your score.

Recent Credit Activity (10%)

If recently you are trying to get more loans or apply for new lines of credit, this may not be good for your score as it tells lenders that they need to do a credit check and look for any problems with your finances.

What Bills Can I Pay to Build My Credit?

Your Mortgage Payment

A mortgage is usually paid in a series of monthly payments over a long period of time (typically 15 years or more). If you make your monthly mortgage payments on time, it will help improve your credit score.

Mortgage papers with a little keychain house

Three Major Credit Bureaus

If you have a mortgage, your lender reports your payment history to three main credit bureaus; Experian, Equifax, and TransUnion so they'll know how much you owe on your house and how often you make payments on time.

If you pay off your mortgage early or pay it ahead of schedule, this will help improve your credit score because it shows lenders that you're capable of managing large amounts of debt.

Phone and Utility Bills

This includes gas and electric bills. Some utility companies send out monthly statements of their clients to credit bureaus with the due date listed on them.

Do Phone Bills Build Credit?

A phone bill can help to build a positive payment history on your credit report because some phone companies send out monthly statements to credit bureaus with their due dates listed on them.

If your utility company does not submit your utility payments, you can do that yourself to improve your credit score. You can use Experian Boost™ and CreditBoost to report utility payments who will in turn report to the major credit bureaus.

Cartooned phones chasing each other

Can Late Phone and Utility Bill Payments Affect Credit?

If you make timely payments for your phone bill, this will help improve your score over time because it shows that you are responsible when it comes to paying off debts in a timely manner. If you don't make timely payments for your cell phone bill, then this will negatively affect your score since it shows that you aren't paying off debts in a timely manner.

Auto Loan Payments

A car loan is a good way to boost your credit score, especially if you make your payments on time.

Here’s How It Works

A car loan is an installment loan, meaning that you pay off a certain amount of money every month until the entire balance is paid off. When you make payments on time, the lender reports them to credit bureaus as positive payment history. This helps improve your credit score over time.

Car loan application form


Medical Bills

Does Paying Medical Bills Build Credit?

A medical bill is a bill you get from a hospital, doctor, or other health care provider. If you pay yours on time, it will help build your credit by showing that you have a history of paying your bills on time.

They show on the Credit Report

Medical bills are usually sent to collection agencies if they aren't paid after 90 days. They become part of your credit reports and can make it harder for you to get approved for credit in the future

Medical bill statement document


This means they will hurt your credit if you don’t pay them on time. If you have unpaid medical bills, it's important to work with your doctor or hospital to resolve them before they become bad debts.

If you have insurance coverage and only need to pay a portion of the bill yourself, make sure you pay on time so that the entire payment gets reported to the credit bureaus, not a small portion. If possible, set up automatic payments through your bank account so it takes care of itself without having to remember each due date.

Credit Card Payments

When you use a credit card, you're borrowing money from a lender and agreeing to pay it back. It’s important to understand how credit cards can help you, and how they can hurt you.

Payment History

This is the most important factor in determining your credit score. You must make at least the minimum monthly payment on time each month or risk damaging your score.

Three credit cards


Can You Build Credit Just by Paying Bills?

Yes, you can build credit by paying bills. But it's not the only factor that affects your credit score. Paying on time and not missing any payments are two other factors that affect your credit score

 Paying your bills on time and in full whether it's a utility bill or rent will help you build a positive payment history that lenders look at when determining whether to approve or deny your application for credit.

Does Paying Insurance Build Credit?

We are often asked if paying insurance such as car insurance can build your credit score. The answer is no; it does not affect your credit score as the insurance company has not lent you any cash.

About Dusan Stanar

I'm the founder of VSS Monitoring. I have been both writing and working in technology in a number of roles for dozens of years and wanted to bring my experience online to make it publicly available. Visit https://www.vssmonitoring.com/about-us/ to read more about myself and the rest of the team.

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