How to Improve Your Credit Score with Your Cellphone Bill

Your cellphone bill might help you build credit and improve some of your credit scores, but only if your payments get reported to at least one of the credit bureaus: Experian, TransUnion, or Equifax. Even when your account isn’t being reported, you don’t want to fall behind on payments. If you do, the carrier might send your account to collections, which could hurt your credit.

How to Sign Up for Experian Boost

Experian Boost is a free feature that comes with Experian accounts. In addition to cellphone bills, you can use Experian Boost to get credit for rent, insurance, utility, and select streaming service payments.

1. Create a free Experian account. You’ll also receive free access to your Experian credit report, FICO® Score, and ongoing credit report and FICO® Score tracking.
2. Go to the Experian Boost page. Once you’re logged in, you can get to the Experian Boost feature by going to the Credit tab at the top of the page and selecting Experian Boost under tools.
3. Link your eligible bank or credit card account. Experian uses bank-level encryption and a third-party service to link your accounts without storing your username or password.
4. Add your cellphone bills. Experian Boost will look through up to two years of account history for your eligible bill payments. You can choose which bills to add and can remove bills later.

What Happens When You Don’t Pay Your Phone Bill?

Missing a phone bill can have several repercussions, but it might not hurt your credit scores right away. Experian Boost doesn’t report late payments. However, your carrier could charge you fees, suspend your service, or send your account to collections, which can hurt your credit score.

Why It’s Important to Build Credit

Building your credit can be important because your credit history can affect your eligibility and offers on new credit accounts, home rental, security deposits, employment, and insurance premiums.

Additional Ways to Build Credit

Adding your cellphone bills to your credit report isn’t the only way to raise your credit scores. Making your current credit card and loan payments on time can help, as can paying down credit card balances. Here are some traditional ways to add new accounts to your credit reports:

• Apply for a new credit card.
• Open a secured credit card.
• Become an authorized user.
• Take out a credit-builder loan.
• Apply with a cosigner.

Contact O1ne Mortgage for Expert Mortgage Services

At O1ne Mortgage, we understand the importance of a good credit score in securing favorable mortgage terms. If you need assistance with your mortgage needs, don’t hesitate to call us at 213-732-3074. Our team of experts is here to help you every step of the way.