Does Paying Your Phone Bill Build Your Credit for a Mortgage?
Several ways to boost a credit score exist. The most important way to improve it is to pay your bills on time. The credit reporting agencies give it a weight of 35%. Utility companies issue you credit indirectly. You use electricity. They calculate the amount used. Then, they send you the bill. Technically, they issue you credit. At the end of the billing cycle, you pay it.
Landline phones operate in the same manner. Thus, if you have one in your name, it helps build your credit score. In 2022, the most common phone has become the smartphone. If you have a cell phone plan in your name, the phone bill helps build your credit. Young adults can enter into contracts at the age of 18. Therefore, a cell phone plan is a great way to start building credit at a young age.
The only caveat is individuals must ensure that they have a post-paid plan, not a pre-paid plan. The post-paid plan works in the same manner as utility bills. The provider is technically issuing you credit. Then, based on your usage, the provider bills you at the end of the cycle.
Our mortgage repayment calculator is a great resource for homebuyers.
Can a Phone Bill Build Your Credit Conclusion
A phone bill can help build your credit. You simply need to obtain a post-paid plan. Landlines help too since they count as utilities. If you need to work on your credit score, you can apply for a Mortgage House bad credit home loan. Our loan specialists can provide more information today.