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October 3, 2024 at 5:25 pm #1052
Kikoff
KeymasterOctober 3, 2024 at 5:38 pm #1063Kikoff
KeymasterBills can help you build credit! Banks and credit card companies will then report your bill payments to credit bureaus, who update your score. Consistently paying your bills on time and not missing payments is one of the most important and reliable ways to build credit.
Typically, two main kinds of bill accounts are reported to credit bureaus:
- Installment Credit: lump-sum loans that you pay back in installments, like mortgages, car, or student loans.
- Revolving Credit: loans that you can pay off in varying amounts, like credit card bills
While these are the most common ways bills are used to build credit, there are others.
For example, Experian, one of the three credit bureaus, has their Experian Boost® service, which lets users submit everyday recurring payments to credit bureaus. This lets you submit things like streaming service subscriptions, cell phone bills, and even utilities, like electricity and water bills. This can be a great way to share additional consistent payments with the credit bureaus.
While not exactly a bill, rent is a monthly recurring payment. Through Kikoff you can report your rent payments to credit bureaus, providing them with yet another consistent payment from you.
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