Does Your Phone Bill Affect Your Credit Score in Canada?

Yes, your phone bill can affect your credit score in Canada, but it depends on your wireless provider.

Some providers report payment activity to Equifax or TransUnion, while others may only report unpaid accounts sent to collections.

Paying your bill on time can help build credit if positive payments are reported, but it does not guarantee a higher score.

KOHO Credit Builder

KOHO Credit Builder helps Canadians establish or improve their credit history through consistent monthly payments, without relying on a traditional credit card.

With KOHO Credit Builder, you can:

• See an average credit score increase of 74 points*

• Get approved without a hard credit check or minimum deposit

• Pay no interest on the line of credit

• Track your credit score and credit report directly in the KOHO app

• Build credit history through monthly payments reported to the credit bureaus

Does Paying Your Phone Bill Build Credit?

It can, but only if your provider reports your positive payment history to a credit bureau.

Some wireless providers report postpaid accounts, which means your monthly payments may contribute to your credit history.

However, reporting practices vary. Some providers do not report regular on-time payments.

Before signing up, ask your wireless provider whether it reports payment history to Equifax, TransUnion or both.

Can Missing a Phone Payment Hurt Your Credit Score?

Yes.

If your provider reports late payments, missing a due date can negatively affect your credit history.

Even if your provider does not regularly report account activity, an unpaid phone bill that gets sent to a collection agency may appear on your credit report.

Collection accounts can remain on your report for several years, even after you repay the debt.

If you're having difficulty paying, contact your provider before the account becomes seriously overdue.

Does a Prepaid Phone Plan Affect Your Credit Score?

Generally, no.

With a prepaid phone plan, you pay for your service before using it. There is usually no monthly credit arrangement or outstanding bill to report.

This means prepaid phone plans generally do not help build credit through regular payments.

However, financing a device separately may involve a credit agreement.

Does Applying for a Phone Plan Affect Your Credit?

It can.

Some wireless providers perform a credit check when you apply for a postpaid plan or device financing.

If the provider performs a hard credit inquiry, it may temporarily affect your score.

Prepaid phone plans generally do not require a traditional credit check.

How Can You Check if Your Phone Bill Is Being Reported?

You can check your credit reports for free through Equifax and TransUnion.

Look for your wireless provider under your credit accounts.

If the account appears, review its payment history to make sure the information is accurate.

If it does not appear, contact your provider to confirm whether it reports accounts and which credit bureau it uses.

Checking your own credit report does not hurt your credit score.

Should You Get a Phone Plan Just to Build Credit?

Not necessarily.

A phone plan should primarily meet your communication needs and budget. There is little reason to choose an expensive plan solely because it might help your credit.

The important thing is to confirm your provider's reporting practices and pay your bills on time.

Positive phone payment history may help your credit, but unpaid bills can create problems even when regular payments are not reported.

*Based on users with a starting score of 450 or under and who used all of our credit building tools (i.e. Credit Building, Secured Credit Building) for 12+ months with on time payments. Credit building tools we offer are not a credit repair tool and does not guarantee an improvement in credit score. Credit scores are based on complex models involving a variety of factors. Consistent on-time payments help improve scores and missed or late payments may cause credit scores to decrease. Outcomes may vary among users.