Most people realize that utility bills are probably more important to pay than cell phone bills. Sadly, you usually don’t get much of a choice in your utility provider. These members have an average credit score of just 550-the high end of bad credit. Members in their 40s have the highest average cell phone collection balance of all.Īverage for members in their 40s: $ 1,019Ĭell phone debts cause serious harm to your credit. Lest you think that younger consumers are most likely to have problems paying for their phones, that’s simply not true. Unfortunately, for many Credit Sesame members, the damage is already done.Īverage cell phone collection account balance: $ 939 You can lower your cell phone bill by opting for a pay-as-you-go cell phone plan or a discount carrier like Cricket or Republic Wireless. It’s no wonder some people can’t afford to keep up with payments. Cell phone collectionsĬell phone bills often reach $100 or more per month. We decided to take a look at a sample of 5,000 anonymous Credit Sesame members who have these types of debts to find out how damaging they really are. How badly do cellular, medical and utility collections hurt your credit? If you see one of those types of accounts on your credit report, chances are, it’s hurting you. NOT paying the bill can torpedo your score. Put another way, paying your cell phone bill, doctor’s bill or electric bill does nothing to help you build credit. These payments generally do not appear on your credit report unless and until the creditor has negative information to report: Not so with cellular, medical, and utility debt. ![]() ![]() As long as you pay on time, these types of accounts help you build healthy credit as you use the account responsibly. More traditional forms of debt like credit cards and loans report your payment status on a monthly basis. My Home Buying Power (Free for Members).
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