Paying Bills on Time?

Anonymous · ‎01-11-2016

Jan 1, 2016 marks my rebuilding journey.

I also want it to be the date that I drop some bad habits that I picked up along the the way.

So everyone puts emphasis on the importance of paying bills on time and the impact it has on your score

My question is: Are we talking bills like 1) Car Note 2) Credit Cards 3) Mortgage

or does it also include 1) Rent (Apartment) 2) Cable bill 3) Cellphone bill 4) Car Insurance etc.....

Are these things also reported to the credit agencies? I confess that I am guilty of taking a $15 late fee here and there if it means waiting another week or so to pay a bill.

After joining this forum, I find myself in "shoulda, woulda, coulda" mode

AutoBot · ‎01-11-2016

Technically, you would want to pay all your bills on time, but paying the ones that report to the CRAs on time is monumental in increasing your FICO score. Certainly car loans, mortgage, credit cards, and possibly rent (depends on if your rental company reports) all report to the CRAs. Typically, your utilities do not report to the CRAs. On time payments is a big portion of your FICO scoring so make sure you keep on top of things because it takes a while to repair late payments. I know tis first hand.

Anonymous · ‎01-11-2016

@AutoBot wrote:
Technically, you would want to pay all your bills on time, but paying the ones that report to the CRAs on time is monumental in increasing your FICO score. Certainly car loans, mortgage, credit cards, and possibly rent (depends on if your rental company reports) all report to the CRAs. Typically, your utilities do not report to the CRAs. On time payments is a big portion of your FICO scoring so make sure you keep on top of things because it takes a while to repair late payments. I know tis first hand.

Your utilities will report if you DO NOT pay them.

Gunnar419 · ‎01-11-2016

My best to you and much success to your new plan, DustStorm!

As you've assumed and others have said, utility bills and such generally don't report to the CRAs UNLESS you abuse them. However, newer scoring models are starting to look at utilities and other regular payments, so that could change in the future.

Above all I think the bottom line for you is that you're trying to change bad habits (good for you!) and changing bad habits is the central issue here. Are you sometimes late on those bills because you're living beyond your means? Or are you late on them just because you're forgetful or casual about bill paying? Whatever the reason, the real question isn't whether you can get away with paying those bills late but how you can get into the good, solid, sound, healthy habit of paying them all on time.

MyFico can help!

Anonymous · ‎01-11-2016

The honest answer:

At first,it was because I was literally living paycheck-to-paycheck after finally landing a part-time job after unemployment. It became a cycle of trying to simply stay afloat until my situation improved. After a few months of putting my entire checks towards bills and not having anything left over to treat myself, it was frustrating. Not to mention, unforseen situations. Like needing to get home for a funeral but not really having the money to travel, but went anyway.

That is kind of where it began. I would treat myself here or there (eating out, movies etc....) but sacrificing an on-time bill payment to do so.

Gunnar419 · ‎01-11-2016

@Anonymous wrote:
The honest answer:

At first,it was because I was literally living paycheck-to-paycheck after finally landing a part-time job after unemployment. It became a cycle of trying to simply stay afloat until my situation improved. After a few months of putting my entire checks towards bills and not having anything left over to treat myself, it was frustrating. Not to mention, unforseen situations. Like needing to get home for a funeral but not really having the money to travel, but went anyway.

That is kind of where it began. I would treat myself here or there (eating out, movies etc....) but sacrificing an on-time bill payment to do so.

Thanks for the very candid reply, DustStorm. I think a lot of people (including me) can identify with your situation.

Are you now past the point of living paycheck to paycheck or would you say you're still there? Or close to there? If you're still there do you have some idea yet of how to get past that point?

BTW, I particularly understand giving yourself small treats even when money is tight. There will probably be people saying it's not the right thing to do, but to me those little treats (as long as they stay little) are a form of encouragement and incentive.

Anonymous · ‎01-11-2016

My situation has improved somewhat for the better. I started pretty small. Puting away $50-$75 a week to start the credit repair.

As long as I stil have things to fix on my credit, I wont feel like Im yet on solid ground.