Credit Reporting of Bills Paid

Credit Report

The three major credit bureaus compile consumer credit reports to track your history as a borrower. Credit reports contain a listing of your trade lines, personal information, inquiries and public records. The purpose of your credit report is to give creditors an idea of your risk as a borrower. The more negative items in your credit report, the worse your credit score becomes.

Paying your bills on time is reflected in your credit report. Each bureau formats information differently, but all have identifiers for 30-, 60-, and 90-day late payments. Late payments can be identified through color coding, using the numbers "30" or "60," or with an "X" on the late months. When you seek a new loan or credit account, the lender may ask the cause of your late payments during the months you were delinquent.

Your credit limit for each account is reflected on your credit score, if applicable. Many household bills do not have credit limits but do reflect past due balances. Creditors seek borrowers who can manage credit responsibly. Carrying large balances on your revolving accounts such as a credit card or line of credit is damaging to your score. The responsible use of credit includes keeping your balances below 30 percent of your available credit and paying household bills within your billing cycle.

Length of credit history is a major factor influencing your credit score. The longer you keep your accounts open, the stronger your credit score. The open and close dates of each of your bills are included on your credit report. Accounts closed in bad standing are reflected by a note from the creditor in the account description. Generally, the notes also include who initiated the closing of your account.

Not all creditors report to the three major credit bureaus. Some bills are only included on your credit report once they are closed or go into collections. If you are looking to use your bill payment history to raise your credit score, open credit accounts such as credit cards and car loans that will be reported monthly to the credit bureaus. Avoid overlooking small debts such as library fines, as these tiny bills can leave a negative impact on your credit if they go unpaid.