Does Paying Your Phone Bill Build Your Credit?
Having a good credit score is important when applying for a home loan. One of the easiest and best ways to improve your credit score is by paying all of your bills on time and in full. This includes your phone bill. Paying your phone bill regularly can help improve your credit score, allowing you to slowly build credit. Your phone bill can affect your credit score in other ways too.
How Does My Phone Bill Affect My Credit Score?
There are a few ways your phone bill can affect your credit score. For one thing, it can help you build your credit, especially if you’re just starting out. Making your monthly phone bill payments on time and in full can boost your credit score, showing potential future lenders that you are a responsible with your finances. Another way your phone bill can affect your credit is that when you apply for a phone plan, the telephone company will usually check your credit score. This enquiry will show up on your credit report for five years. If you apply for a loan or other credit, the lender or companies you apply with can see this enquiry. Finally, if you miss making your monthly repayments or go into default on your phone bill, this could negatively impact your credit score. This default and missed repayments will show up on your credit report for five years also, which could decrease your chances of being approved for a loan later on.
If you’re concerned about how your credit score may affect your chances of being approved for a home loan, consult with the lending specialists at Mortgage House.