Bills that build credit are typically those for loans and credit cards (mortgages, auto, student loans, credit cards) when paid on time, but you can also get credit for rent, utilities (phone, internet, gas, water), and even streaming services through special services like Experian Boost or by paying them with a credit card. The key is on-time payments reported to the major credit bureaus (Experian, TransUnion, Equifax).
Paying your monthly utility bills — water, gas, trash, electric, streaming services, and internet — can help you build your credit if those payments are paid on time as agreed and are reported to the credit bureaus.
Bills that do impact your credit score
Here are the kinds of bills that may qualify:
Pay your bills on time.
One of the most important things you can do to improve your credit score is pay your bills by the due date. You can set up automatic payments from your bank account to help you pay on time, but be sure you have enough money in your account to avoid over- draft fees.
While paying your credit card bill early can help lower your credit utilization, which may improve your credit score, it doesn't directly increase your credit score. Rather, credit card issuers would report those payments as “on time” as there is no special category for early payments.
The 2-2-2 credit rule is a guideline for building strong credit, suggesting you should have two active credit accounts (like cards or loans) for at least two years, with consistent on-time payments for those two years, often with a minimum credit limit of $2,000 per account, to demonstrate financial responsibility to lenders, especially for mortgages. It's a benchmark to show you can handle credit well over time, reducing lender risk and improving approval odds for major loans.
Paying cell phone, rent and utility bills can help you build credit if your on-time payments are reported to the credit bureaus. But even if they're not directly impacting your credit, it's a good idea to pay all your bills on time if you can.
Paying your bill on time is an important factor. Paying for minor purchases like groceries and gas can help build credit. Major purchases, such as cars and home appliances, also contribute to credit building. Keeping credit utilization low is essential for maintaining a good credit score.
The 7-in-7 rule (or 7x7 rule) in debt collection, part of the CFPB's Regulation F , limits how often debt collectors can call a consumer about a specific debt: they cannot call more than seven times within seven consecutive days, nor can they call again within seven days of a conversation about that debt, preventing harassment and abusive practices, though these are rebuttable presumptions of compliance.
5 Factors That Affect Your Credit Score
Getting utility services ― gas, electricity, water ― has a lot to do with your credit history. The better your credit history, the easier it can be for you to get services. And your on-time (or late) payment history with utility companies can be an important factor for your credit in the future.
Character, capital (or collateral), and capacity make up the three C's of credit. Credit history, sufficient finances for repayment, and collateral are all factors in establishing credit. A person's character is based on their ability to pay their bills on time, which includes their past payments.
It may seem obvious, but a history of consistent on-time payments is one of the biggest factors in building a good score. Thirty-five percent of your FICO® Score is based on your payment history, so be sure to always make at least your minimum payment, and more if possible, on or before your due date every month.
Getting an 800 credit score in just 45 days is challenging, as significant scores usually take time, but you can make rapid progress by focusing on paying down credit card balances to lower utilization (under 30%, ideally under 10%), paying all bills on time, disputing errors on your credit report, and possibly becoming an authorized user on a trusted account, while avoiding new credit applications. The most impactful actions for quick changes involve reducing high balances and fixing mistakes, as payment history and utilization are key factors.
The "15/3 rule" for credit cards is a strategy to improve your credit score by making two payments during your monthly billing cycle: one about 15 days before the statement closing date and another three days before, aiming to lower your reported balance and credit utilization. While the specific 15-day/3-day timing isn't magical, making multiple payments to reduce your balance before the statement closes helps lower credit utilization, a key factor in credit scoring, though it doesn't increase the number of on-time payments reported.
For most people, increasing a credit score by 100 points in a month isn't going to happen. But if you pay your bills on time, eliminate your consumer debt, don't run large balances on your cards and maintain a mix of both consumer and secured borrowing, an increase in your credit could happen within months.
Yes, you can likely get a $50,000 loan with a 700 credit score, as this falls into the "good" credit range (670-739) that unlocks better rates, but approval also hinges on your income, debt-to-income (DTI) ratio (ideally below 36%), and overall credit history, with lenders looking for stability and repayment ability, so prequalifying with multiple lenders helps compare terms.
The golden rule of credit cards is to pay your statement balance in full every single month. This practice is crucial for maintaining a good credit score and avoiding costly interest charges.
Ways to improve your credit score
If you want to increase your score, there are some things you can do, including: Paying your loans on time. Not getting too close to your credit limit. Having a long credit history.