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It is both a money making scheme and it does serve a logical purpose. You might have phone service for 20 years, pay each month by check, and never miss a paym
by cptskippy 7y ago
It is both a money making scheme and it does serve a logical purpose.
You might have phone service for 20 years, pay each month by check, and never miss a payment. That will never show up on your Credit Report. But if you miss one payment, the phone company will gladly report you, regardless of the reason, to credit reporting agencies.
Financial Institutions however do report to credit reporting agencies regularly regardless of whether it's a loan or a credit card.
Having nothing on your credit report isn't necessarily a bad thing, but having a record of making monthly payments is even better. A loan costs money, in the form of interest, but a credit card doesn't necessarily cost you anything. So the theory is that you can acquire a credit card with little or no credit history, and demonstrate your ability to pay off a monthly balance and the credit card company will report that activity.
- fjsolwmv 7y agoThat's not true. Post-paid subscription accounts are generally reported as open credit accounts, since they are.
- cptskippy 7y agoAre they not required to show that information on Credit Reports? I'm only asking because I don't see any of my post-paid subscriptions like my telephone bill or Netflix account which have both been open for 10+ years on any of my 4 credit reports. I can however see that 2 week period in 2006 when a loan I had was sold three times over and each company that touched it said I was a good paying customer despite never having sent me a bill.