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Utility Reporting FYI - Michigan

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Utility companies do not extend credit. They are service providers. So, inclusion of a typical utility account on a CR is not really appropriate. However, when a consumer fails to pay a utility, that's indicative of risk to potential lenders and other service providers. Risk estimation is what credit scores is all about.

Most consumers pay utility bills in a timely manner, because if they don't, services get terminated rather quickly. It's really only an issue if someone doesn't pay...

To build credit history, a consumer needs to have credit accounts.

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Why is it that the utility co's are so quick to report bad info. but never seem to report if you pay on time for a year straight?

Because until you are delinquent on the account, they are generally not creditors. Being paid up means you don't owe them anything; and, if they have a security deposit, it is actually they that owe you money.

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