Many people have no idea just what kind of information is contained in their credit reports. Did you know your cell phone payment history may affect your credit score? Just like other creditors, cell phone companies report to credit bureaus. Negative remarks from cell phone companies--such as late or missed payments, account closures, and account collection--may reduce your credit score.
One of the most important factors in determining your credit score is your payment history. Thirty-five percent of your credit score is calculated based on your payment history. Miss a few payments, and it shows up on your credit report. Some financial advisors believe missed payments may affect your score even more than paying your home mortgage on time.
Your credit report contains information on all types of accounts. When you applied for your cell phone account, you probably had to provide personal information so the provider could check your credit history. Your cell phone provider reports open accounts to credit bureaus. Your credit report contains information such as open accounts and closed accounts, as well as accounts that are past due. Even your previous cell phone payment history may show up on your credit report.
Your credit report is basically a measure of your credit worthiness. It's the first thing potential lenders consider when determining if they want to work with you. If you don't take care of your cell phone bill as you would any other credit card bill or line of credit, you may pay for it the next time you try to take out a loan or apply for another credit card.