The things that influence your credit score aren't always obvious, and utility bills sit in a genuine grey area.

Electricity and phone bills get paid every month like clockwork, so surely they count? It's not that straightforward.

Utility bills and your credit report#

Credit cards and loan payments are reported to the credit reference agencies and appear on your report. Utility bills have a much more selective presence.

That's because most utility companies don't routinely report your payment history to Experian, Equifax and TransUnion.

So consistently paying your gas, electricity or water bill on time might not influence your score the way traditional credit does. That doesn't make those bills less important — here's why.

How missed bills can affect your score#

Where your utility payments are reported, missed ones can do real damage.

  • Missed payments. Let the arrears build far enough and the supplier can register a default against you, or sell the debt on to a collection agency. That stays on your report for six years and can significantly affect your score and your future borrowing.
  • County Court Judgments. In severe cases where the debt remains unpaid, your provider might take court action to recover the money. A CCJ appears on your credit report and can make it much harder to get approved for credit, a mortgage, or even a rental property.
  • Debt management arrangements. If you enter a formal debt management plan or an IVA that includes utility debts, that's recorded on your file and will count against your score.

The best way to stay on top of this is simply to know where you stand.

Reporting is becoming more common#

The picture is shifting. It's increasingly common for utility companies to report payment history to the credit reference agencies.

Some mobile phone providers now report monthly contract payments, which means paying your phone bill on time could genuinely help your score.

There are also credit builder services aimed at people with little or no credit history. These let you connect your bank account to demonstrate regular bill payments — rent and utilities included — which can then be factored into your score.

If you're struggling to keep up#

If utility payments are becoming difficult, don't panic — but do act quickly.

  • Contact your provider straight away. Utility companies can set up payment plans or temporarily reduce payments if you're in financial difficulty. Get in touch before you fall behind rather than after, to avoid an impact on your credit health.
  • Get independent debt advice. Citizens Advice and StepChange both offer free, impartial guidance on managing utility debts and protecting your credit score.

Utility bills may not directly build your score the way credit cards and loans do, but they're a crucial part of your overall financial wellbeing. Missed or late payments have consequences that reach well beyond keeping the lights on.

The key things to remember#

  • Most utility companies don't report on-time payments, so paying up doesn't automatically help your score.
  • Serious arrears can lead to a default, which stays on your file for six years.
  • Unpaid utility debt can end in a CCJ, which affects credit, mortgages and renting.
  • Debt management plans and IVAs covering utility debts are recorded too.
  • Some mobile providers do report monthly payments, which can help.
  • Credit builder services can bring rent and utility payments into your score.
  • Contact your provider before you miss a payment, not after.