If my parents put our cable bill or any of the utilities bills in my name will that build me credit?

Question

keeping in mind that they will be paid on time. Im only 18 so im trying to establish some creit

Answer 1

Utilities will not help your credit...the only thing they can do is hurt your credit if your parents don't pay. Utilities don't build credit, they don't report to your bureau every month like a student loan, credit card, auto, or mortgage. The only time they will contact the credit bureau is to show that you are past due. If you want to build your credit find someone with good credit and get him/her to put you on his/her credit card as an authorized buyer. It will report to your credit bureau and will look like you have had the account as long as they have and have been making payments on it for that length of time(called piggy-back credit). Be careful, since it reports to your credit bureau if that person misses a payment it can report negatively on your report. Another really good way to build credit is by taking out a student loan.

Answer 2

When you don't pay your utilities on time, the most that will happen is she will keep receiving phone calls or threats of them shutting off her service. If you or her do not call the utility company and make payment arrangements and stick to them, they WILL come out and shut off her service. It will then cost her a good chunk of money to get them turned back on ( I know the water here is like $98 to get it turned back on the same day after you make the outstanding payment! ) and the utility may even require that the delinquent account holder put down a deposit. (deposits are usually $100 or more!) Now, if her utilities get shut off and she cannot get the money together to put them back on, they will go to a collection agency at some point. Usually in about 3 to 4 mos. If they are sold to a collection agency it WILL go on your credit report. Late utility bills that do get paid before service is shut off do NOT affect your credit as far as your credit report, BUT, do affect your standing with the utility company. As I said, keep up the late payments, or being shut off and the utility company will definitely assess a deposit charge to your account. Also, if she is renting this place, anytime the guy comes out and actually shuts off the utility, the landlord or whomever owns the property will get notice the utility was shut off. This could get her in hot water with her landlord!

Answer 3

Is there a reason they can not keep the utility bills in their name? In addition, it doesn't make ones credit any better because utilities don't report to credit bureaus unless they default.

Answer 4

it might and it might destroy it, as well. Remember, YOU are the one that will be responsible for the bill and if they don't pay, you go down. that is a big gamble and honestly, I would question the reasoning.
don't let your parents talk you into something that may jepardize your future. you are 18 and can make your own decisions.
I am a 46 yr old mother of 3 and I have never thought of doing such a thing!
I have encouraged my kids to be wise in their credit choices explaining the flip side of bad credit.
If YOU can not afford to pay for these bills - don't do it!!

Answer 5

Unfourtanately it could go either way if you or them stop paying it would damage you before you even get real credit..It can help though just pay the bills on time all would be fine..Wait untilyou are about 19 so that it will show at least 1 year of credit worthiness& have a job....you will be fine

Answer 6

they can't put in in your name
for that to happen they have to terminate services and you have to establish services
and since you have no credit profile
they either want large up front deposits
or may just deny you period
even if it is in your name utilities are not reported to credit agencies ( unless of course you fail to make a payment ), so they are worthless pretty much in establishing credit, 2 years at a job and living in one place for 2 years min is better option for getting credit.

Answer 7

Most but not all utilities only report to credit reporting agencies when the accounts go delinquent, so in general I advise against it.

Answer 8

I have to ask why your parents are putting the utilities in your name. Have they defaulted in they own name, because my mom has done that to nearly everyone in the family. I wouldn't let my name be used. My mom has ruined the credit of her grand children for Pete's sake.

Answer 9

The answer is yes but it's a bad idea. Bear in mind if the account goes delinquent you will take the hit, not your parents. Unless you are 110% confident the money will be made available each month to pay the bills then say thanks but no thanks.