Borrowing money to pay for goods and services, with the expectation to repay it, is considered purchasing on credit, and responsibly repaying that debt helps build your credit. However, your cable bill doesn’t quite affect your credit the same way. That’s because your payments on your cable bill generally are not reported to the credit bureaus — unless they’re seriously late.
In other words, if you’re responsible about paying your cable bill on time, your cable bill likely won’t affect your credit score, either positively or negatively. But not paying a cable bill can affect your credit, namely if your account becomes delinquent and gets sent to collections.
Recommended: Does Applying For a Credit Card Hurt Your Credit Score?
What’s a Cable Bill?
A cable bill is a statement for an unpaid entertainment service or subscription, like a cable television subscription or package plan. It might include costs like the base price of the plan or service, along with other fees.
Cable bills fall under the “utility bills” category, which includes other household expenses, like electricity, water, and gas. However, unlike those essential utilities, cable service might be one of the first expenses to cut if you’re living on a budget.
How Not Paying Your Cable Bill Affects Your Credit
Your cable bill generally doesn’t affect your credit score — that is, unless you fail to pay it.
On-time cable bill payments won’t help you build credit, nor will they strengthen it. That’s due to the fact that cable servicers don’t traditionally report timely payments to the major credit bureaus (Experian, Equifax, and TransUnion).
If you’ve missed multiple payments, servicers can do one of two things: charge off the unpaid balance or send it to collections. In both situations, your credit score will take a hit.
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How Do Late Cable Bill Payments Affect Credit Score?
Whether paying a cable bill late affects your credit depends on how late you are with payment. Typically, late payments are reported to credit bureaus when they’re at least 30 days overdue and are marked delinquent.
If you provide a late payment after your due date, but before it’s sent to the bureaus, the consequences are at your service provider’s discretion. However, if the payment was made after the late payment was reported, or you missed a payment entirely, your credit score will drop.
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How Long Does Late Cable Bill Payment Hurt Your Credit?
Late payments that are reported to the credit bureaus have a lasting effect, whether it was one indiscretion or a chronic occurrence. Late cable bill payments can stay on your credit report for up to seven years.
As such, if you’re finding yourself routinely struggling to put aside enough for your cable bill, you might look into methods for saving on streaming services.
How to Use Your Cable Bill to Build Credit
Paying bills with a credit card is a straightforward way to establish credit when you’re new to it. If you’ve been approved for your first credit card, you might consider using it to pay for your cable bill.
Then, when your credit card statement is due, make a manual payment. Even better, set up automated bill payments ahead of time so you never miss a bill.
As you make on-time payments on your credit card, your card issuer will routinely report your positive payment data to the credit bureaus. Over time, with responsible credit card repayment and keeping your revolving debt manageable, you can build your credit.
Alternative Ways to Build Credit
If you’re credit invisible, meaning you’ve never had credit, or you want to take steps to mature your credit profile, here are a few other strategies to build credit.
• Get a secured credit card. A secured card can offer a small credit line to new credit users. It requires a small deposit, which the card issuer mirrors for your credit limit. As you use your card up to this limit and repay it, the issuer reports your payment activity to the bureaus.
• Get a retail card. Store-branded credit cards, such those from department stores, gas stations, or retail brands, can be easier to get than traditional credit cards. However, they usually have lower credit lines.
• Make payments on time. When you do open a new credit card or installment loan, stay on top of monthly payments as they account for 35% of your credit score. Organize bills to identify when your due dates are, and consider enrolling in auto-pay to conveniently pay your bills on time.
• Apply for an installment loan. This might include consumer loans, like a secured personal loan or an auto loan. If you’re a college student and need additional financial aid beyond scholarships, grants, or work-study, a student loan can help pay for your education and establish your credit profile. Always seek out federal student loans first, before a private student loan. Federal loans offer greater borrower protections and benefits.
• Ask your landlord to report rent payments. Most landlords don’t report your on-time rental payment data to the credit bureaus. However, more third-party services, including Experian’s own Experian RentBureau, are making this possible. Ask your landlord if they are willing to share your good rent payment activity with credit bureaus for your credit file.
• Become an authorized user. Ask someone with whom you have a close relationship, like a parent, grandparent, spouse, or sibling, if they will add you to their credit card account as an authorized user. Some lenders report good payment habits to the credit bureaus for all users on the account. Even if you’re not liable for making payments on the credit card, the reported data can establish your credit and help your score.
The Takeaway
Although your cable bill has little positive effect on your credit score, staying in good standing on the account can help keep your credit out of trouble. That’s because seriously overdue payments can show up on your credit report, where they’ll remain for up to seven years.
FAQ
Does paying cable bills on time build your credit score?
Cable providers typically don’t report on-time payments to the credit bureaus. Since this data isn’t shared with the bureaus, timely payments don’t directly affect your credit score.
Do late cable bill payments hurt your credit score?
Late cable bills affect credit scores if they’re marked as a charge-off by your provider or are sent to a debt collector. Accounts with these statuses are reported to credit bureaus and harm your score.
Are cable bill payments reported to a credit bureau?
Cable bill payments typically aren’t reported to credit bureaus, unless you’ve missed multiple payments that have been charged off or are in collections.
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This article originally appeared on SoFi.com and was syndicated by MediaFeed.org.
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Does refinancing hurt your credit score?
Most people want to refinance their student loan to help their financial situation. So, the possibility of hurting your credit by going through the process of refinancing is alarming.
Fortunately, any harm done to your credit in applying should be pretty minor–and temporary. It’s just a part of going through obtaining a loan.
As for whether student loan refinancing will inflict any other kinds of damage to your credit, it definitely shouldn’t. To make sure your credit score is safe, learn more about how refinancing works and how you can best protect yourself.
DepositPhotos.com
A credit score is the number assigned to you by any of the credit rating agencies. Those agencies include Experian, TransUnion, and Equifax.
Whenever someone looks at your score–a lender considering whether to give you a loan, a landlord deciding if you’d make a good tenant–they’ll see a number that tells them how good a risk you are. Credit scores are like a snapshot of your financial health.
If you have a good credit score, you’re going to get more green lights to what you want: a loan with low interest, an affordable car insurance policy, a high-limit credit card. On the flip side, if your score isn’t good, you’re going to be turned down for loans, lose out on homes and cars, and only be able to get high–interest credit cards.
Judgements vary, but anything 700 or above is considered a strong score. Your credit score is influenced by:
- On-time payments for bills
- Steady (but not excessive) use of credit
- History of paying balances in full
DepositPhotos.com
It’s all about choices in paying off student loans. With student loan refinancing, you take your existing loan, one you’ve been paying down, and approach a private lender to ask for a new student loan. The goal is to get a better deal: lock into savings-producing lower interest rates, sign up with more favorable terms. The lender–a bank or other financial institution–basically buys the old loan and issues a new one with you.
Student loan debt has reached staggering amounts in the U.S.
Generally, people refinance a federal student loan issued while they were in college and take out a private loan with lower interest. It should be noted that with student loan refinancing, if you do so, you lose the protections of federal loan forgiveness and cancellation programs.
Damir Khabirov / istockphoto
So, to dig deeper into the question “Does refinancing student loans hurt your credit?” we’ll scrutinize the loan application process. The bank, credit union, or online lender you’ve gone to will perform what is known as a “hard credit check” when you apply for a loan. The intent is to see your number and the history behind the number.
Why does a hard credit check affect your number? After all, you didn’t do anything “wrong.” One explanation is that a hard inquiry means a lender is assessing your credit report and that creates uncertainty. You may be trying to get a personal loan, a student loan, or a mortgage. Something could be about to happen that could shake up your financial “health.”
simonapilolla / istockphoto
Sometimes this hard check doesn’t do anything to your credit. But other times the check will lower your credit score. How much? Occasionally as much as 10 points. More often 5 points or less. And fairly soon your score will return to where it was before the hard check.
The problem is if you submit multiple full applications for loans over the course of several months, your credit score could take a bigger hit. The reason is this suggests more volatility. So, if you put through these full applications over a long stretch of time, then the question of “Does refinancing student loans hurt credit?” carries the answer “Yes.”
There are proactive steps you can take to make sure your credit score makes it through the process in good shape.
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You can pre-qualify for a loan offer, and it won’t affect your score. Take advantage of that when you decide who you want to put in an application with. A full application is the only type that will nudge down your credit score. So try to submit to the lenders you consider your best options.
Also, and this is key, try to apply with your chosen few lenders for a student loan within the same month. That keeps the damage to your credit score to a minimum.
Note: Your FICO score won’t be significantly hurt by multiple inquiries if they occur within a 30-day window. Your Vantage credit score may have a shorter window of 14 days.
Anhelina Pikas / iStock
When you’re trying to refinance, your money moves are under a spotlight. You need to be meticulous about continuing to make payments on your loan throughout the process. If you are late with a payment now, your credit score might suffer just when you want it to be perfect.
Keep on top of the payments for your original student loan until you are totally sure that the refinancing process is complete.
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When you analyze the question of whether refinancing student loans hurts your credit, you need to acknowledge the importance of making payments on time.
Yes, the application process could be finished, but any late payments will be reported to the credit agencies and lower your score. When choosing the terms of the loan–which is how long you will need to pay it off–make sure the repayment isn’t going to be too hard for you to cover. When refinancing, some people choose a shorter loan term and higher payments to get their loan over with. But the most important thing is making payments on time. Then refinancing is unlikely to hurt your credit.
Be sure to weigh this priority when you study the pros and cons of refinancing student loans.
tommaso79/ iStock
How will refinancing affect credit score? When you refinance your student loan, the private lender will do a hard check of your credit, which could cause a dip in your rating for a short time. If you apply to as few lenders as possible and keep it within a short time frame, that will minimize the chance of any credit damage. And be diligent in timely loan payments.
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This article originally appeared on LanternCredit.com and was syndicated by MediaFeed.org.
The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website on credit (https://www.consumer.ftc.gov/topics/credit-and-loans)
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This Lantern website is owned by SoFi Lending Corp., a lender licensed by the Department of Financial Protection and Innovation under the California Financing Law, license number 6054612; NMLS number 1121636. (www.nmlsconsumeraccess.org)
All rates, fees, and terms are presented without guarantee and are subject to change pursuant to each provider’s discretion. There is no guarantee you will be approved or qualify for the advertised rates, fees, or terms presented. The actual terms you may receive depends on the things like benefits requested, your credit score, usage, history and other factors.
*Check your rate: To check the rates and terms you qualify for, Lantern and/or its network lenders conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, the lender(s) you choose will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
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Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website on credit.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Personal Loan:
SoFi Lending Corp. (“SoFi”) operates this Personal Loan product in cooperation with Even Financial Corp. (“Even”). If you submit a loan inquiry, SoFi will deliver your information to Even, and Even will deliver to its network of lenders/partners to review to determine if you are eligible for pre-qualified or pre-approved offers. The lenders/partners receiving your information will also obtain your credit information from a credit reporting agency. If you meet one or more lender’s and/or partner’s conditions for eligibility, pre-qualified and pre-approved offers from one or more lenders/partners will be presented to you here on the Lantern website. More information about Even, the process, and its lenders/partners is described on the loan inquiry form you will reach by visiting our Personal Loans page as well as our Student Loan Refinance page. Click to learn more about Even’s Licenses and Disclosures, Terms of Service, and Privacy Policy.
Personal loan offers provided to customers on Lantern do not exceed 35.99% APR. An example of total amount paid on a personal loan of $10,000 for a term of 36 months at a rate of 10% would be equivalent to $11,616.12 over the 36 month life of the loan.
Student Loan Refinance:
SoFi Lending Corp. (“SoFi”) operates this Student Loan Refinance product in cooperation with Even Financial Corp. (“Even”). If you submit a loan inquiry, SoFi will deliver your information to Even, and Even will deliver to its network of lenders/partners to review to determine if you are eligible for pre-qualified or pre-approved offers. The lender’s receiving your information will also obtain your credit information from a credit reporting agency. If you meet one or more lender’s and/or partner’s conditions for eligibility, pre-qualified and pre-approved offers from one or more lenders/partners will be presented to you here on the Lantern website. More information about Even, the process, and its lenders/partners is described on the loan inquiry form you will reach by visiting our Personal Loans page as well as our Student Loan Refinance page. Click to learn more about Even’s Licenses and Disclosures, Terms of Service, and Privacy Policy.
Student loan refinance loans offered through Lantern are private loans and do not have the debt forgiveness or repayment options that the federal loan program offers, or that may become available, including Income Based Repayment or Income Contingent Repayment or Pay as you Earn (PAYE).
Notice: Recent legislative changes have suspended all federal student loan payments and waived interest charges on federally held loans until 05/01/22. Please carefully consider these changes before refinancing federally held loans, as in doing so you will no longer qualify for these changes or other future benefits applicable to federally held loans.
Auto Loan Refinance:
Automobile refinancing loan information presented on this Lantern website is from Caribou. Auto loan refinance information presented on this Lantern site is indicative and subject to you fulfilling the lender’s requirements, including: you must meet the lender’s credit standards, the loan amount must be at least $10,000, and the vehicle is no more than 10 years old with odometer reading of no more than 125,000 miles. Loan rates and terms as presented on this Lantern site are subject to change when you reach the lender and may depend on your creditworthiness. Additional terms and conditions may apply and all terms may vary by your state of residence.
Secured Lending Disclosure:
Terms, conditions, state restrictions, and minimum loan amounts apply. Before you apply for a secured loan, we encourage you to carefully consider whether this loan type is the right choice for you. If you can’t make your payments on a secured personal loan, you could end up losing the assets you provided for collateral. Not all applicants will qualify for larger loan amounts or most favorable loan terms. Loan approval and actual loan terms depend on the ability to meet underwriting requirements (including, but not limited to, a responsible credit history, sufficient income after monthly expenses, and availability of collateral) that will vary by lender.
Life Insurance:
Information about insurance is provided on Lantern by SoFi Life Insurance Agency, LLC. Click here to view our licenses.
fizkes / istockphoto
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Featured Image Credit: Damir Khabirov / iStock.
