Will unpaid cell phone bills affect my credit score?

Filed in Credit Monitoring by on October 12, 2017 0 Comments

Unlike some regular expenses such as your mortgage or car lease payments, paying your cell phone bills late will not always affect your credit score.
If you miss a payment on your Rogers, FIDO or Bell cellphone bill, the most likely outcome is that you will be charged a late fee on your next bill. In some cases, such as with Freedom Mobile, your cell phone service may be cut off until you make the payments.

However, like most bills, if you miss a payment or you’re extremely delinquent on paying your bill, you can damage your credit score. Cell phone companies are likely to resolve billing issues with their customers first before reporting it to the credit agencies. However, if Rogers or Bell have tried repeatedly to collect the late payment without success, they will send your file to a collections agency. Once it gets sent to the agency, it will start to affect your credit score.

My suggestion is to pay your bills on time, all the time! A delinquent account that’s gone to collections can linger on your credit report for up to seven years! If you are having difficulties paying your bills, the best thing to do is to call Rogers and Bell and inform them of when you will be paying your bill. This way, the cell phone company will wait before reporting you to the bureau.

If you are trying to rebuild your credit, paying your cell phone bills on time will not have any positive impacts on your credit score. The reason is that cell phone plans are not considered loans and they are not reported to the credit agency until a problem arises. The best way to help improve your credit score is to have your cell phone bills charged to your credit card and then pay your credit card.

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About the Author ()

Pat Drummond is the author of Credit Reports Canada and considered by many to be one of the leading experts on productivity and simplicity in relation to financial planning. He started this online credit score & reporting site to chronicle and share what he’s learned in over 20 years of counseling families and individuals on debt management, obtaining loans and improving credit scores.

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