Credit Report affected by un-paid utility bills.

Credit Report affected by un-paid utility bills.
Your credit score report can be affect by more than your
available credit history. We talk about how credit cards,
mortgages, car loans, and any type of loan that reports to
all 3 credit bureaus will affect your credit score. We
don't always talk about utility companies and how they can
have a negative impact on your credit report. Here are
utility companies I like to consider non-creditors. In
other words these companies don't give you a line credit,
they just provide a service.

Utility companies
- Phone companies
- Electric companies
- Security companies
- Cell phone companies
- Water companies
- Gas companies
- Cable companies
- Internet Companies

Let's assume you are having a tough time currently, and you
stop paying your cable bill. The cable company will give
you a little time to pay off the debt for service rendered,
but will eventually turn that debt over to a collection
company. The collection company in return will report that
obligation to the 3 credit bureaus wanting their money.
This is how it works with any of the companies mention.
Once this collection reports to the credit bureaus your
credit rating just dropped about 100 points. Utility
companies on the other hand don't help your credit when you
are in good standing, but will also hurt your credit score
if you don't pay. Once the collection hits your credit
report, and you finally decide to pay off the collection,
the collection will be on your credit report for 7 years. 7
years of negative information will be on your credit
report. If you don't pay the collection, the collection
company can sell the collection repeatedly to different
collection companies which will ultimately drive down your
credit score even more.

Pay your bills on-time
If you get behind, call your creditors immediately and work
out a payment arrangement with them. They will typically
work with you, especially during tough economic times. A
creditor or utility company would rather get some form of
payment versus nothing. If you don't pay your bills
including utility bills it will affect your credit score
report. With lending getting extremely tough currently,
your credit scores are more important than ever. If you
have credit issues, the banks may look at your credit
history as too big of a risk for there portfolio.

Don't assume if you don't pay utility it will not affect
your credit. Because it will affect your credit, and will
not go away until you pay it off. If you are unsure what is
on your credit report, get a copy of your free credit score
report today.

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About the Author: Mike Clover is the owner of
http://www.creditscorequick.com/ . CreditScoreQuick.com is
the one of the most unique on-line resources for free
credit score report, fico score, Internet identity theft
software, secure credit cards, and a BlOG with a wealth of
personal credit information. The information within this
website is written by professionals that know about credit,
and what determines ones credit worthiness.