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Paying your cell phone bill typically does not help you build credit. That being said, there are steps you can take to have your phone bills affect your credit. For instance, paying your monthly bill with a credit card and then making on-time payments on your balance can help you build your credit score from scratch. You also could enroll in a third-party service to have your phone payment activity reported to the credit bureaus.

How Cell Phone Bill Payments Work

If you have a cell phone, each month you will likely receive a bill — either in the mail or digitally — with an amount that you have to pay for using the cell phone carrier’s service. This amount will vary depending on the type of plan you have and how many lines you have under the account, along with other potential charges such as device protection or insurance. If you’ve financed the cost of your physical cell phone, that amount will also get added into your monthly cell phone bill.

Recommended: What Is a Charge Card?

Will Paying Your Phone Bill Build Credit?

Unlike payments on your credit card or loans such as your auto loan or mortgage, cell phone payments usually don’t get reported to the credit bureaus. As such, cell phone payments typically don’t show up on your credit report and therefore don’t impact your credit score.

The only exception to this is if you finance a cell phone and the creditor reports your payments to the three major credit bureaus. In that scenario, those payments could help build your credit.

There are also a couple of ways that you can get your phone bills to help with building credit. These include:

•   Reporting payments to the bureaus through a third party: Cell phone companies usually don’t report directly to the credit bureaus, nor can you self-report your cell phone bill payments to the bureaus. Instead, you can sign up for a third-party service that will report your payment activity to the bureaus on your behalf so they appear on your credit report. You might owe a subscription fee for this service, though.

•   Paying your cell phone bill using your credit card: By paying bills with a credit card — in this case, your cell phone bill — and then making on-time payments on your credit card balance, you can help build your credit score. Beyond serving as a credit-building tactic, using one of the different types of credit cards to cover your phone bills can offer access to added perks, such as cell phone protection.

Recommended: Does Applying for a Credit Card Hurt Your Credit Score?

What Happens to Your Credit Score When You Miss Phone Bill Payments?

While your phone bill payments don’t directly impact your score, if your account becomes delinquent, the delinquency does get reported to the credit bureaus. At this stage, your cell phone bill can negatively impact your score.

Your cell phone account could become delinquent if you miss one or more payments in a row or if you end your contract with your carrier earlier and fail to pay off your balance. This information can remain on your credit report for up to seven years from the date the delinquency occurred.

What Happens to Your Credit Score When You Start a New Phone Plan?

When you apply for a new phone plan, the carrier will do a hard credit pull to help them determine how likely you are to stay on top of your cell phone payments. A hard pull can negatively impact your credit score, though its effects are usually minor and short-lived.

However, your subsequent payments on your new phone plan likely will not get reported to the credit bureaus, meaning your payment activity generally won’t affect your credit.

Recommended: Effect Paying Off Debt Has on Your Credit Score

Does Buying a New Phone Affect My Credit Score?

Buying a new phone won’t impact your credit score. And should you get financing through your cell phone carrier and enter a payment plan, your payments usually don’t get reported to the credit bureaus.

One way that a new cell phone purchase can impact your credit score is if you pay for your new phone with a credit card. If you make on-time payments on your credit card balance, that could help you build your score. But on the flipside, making late payments or missing payments entirely could negatively affect your score.

Importance of Building Credit

Establishing credit and building a strong credit score can not only help you get approved for that car loan, mortgage, or credit card in the future, but it can help you land the most favorable rates and terms.

Without a good credit score, the cost of taking out a car loan or mortgage, or carrying a balance on a credit card, could be more expensive. Getting approved is also more challenging with a thin credit history or a credit score that’s not so great.

Other Ways to Build Credit

Besides reporting your cell phone bill through a third-party company or paying your cell phone bill with your credit card, here are some ways you can build your credit from scratch.

Open a Secured Credit Card

If you’re just starting out on your credit journey, consider applying for a secured card. A secured card works just like a credit card, but it requires a deposit. Your deposit serves as collateral.

Secured cards are designed for those who are building their credit and, as such, generally have lower credit limits. The deposit you make is usually the same as your credit limit. For example, if you have a $250 credit limit, your deposit is also $250.

Once you demonstrate a history of on-time payments, you might graduate to a traditional credit card, which does not require a deposit as collateral and generally offers higher credit limits. Plus, once you move up from having a fair credit score, you may have access to lucrative rewards and perks.

Get a Credit-Builder Loan

Banks, credit unions, and online financial platforms might offer credit-builder loans, which are small loans that are stowed in a savings account. Unlike with a typical loan where you receive a lump sum upfront, you only get the loan amount once you’ve paid off the loan in full. The payments you make on a credit-builder loan are reported to the credit bureaus, which can help you build credit.

Become an Authorized User

Being added as an authorized user on someone else’s credit card means you can make purchases using their card but aren’t on the hook for payments. Instead, the authorized user, generally a family member or trusted friend, is responsible for making payments.

If the account holder maintains responsible credit card behavior, that can help you on your credit-building journey, as their activity appears on your credit report.

Use a Credit Card Responsibly

Using a credit card responsibly and making on-time payments each month can help you build your credit score. Payment history makes up 35% of your FICO^® Score, making timely payment the most influential factor among what affects your credit score. Additionally, keeping your credit card accounts open can help increase the average age of your credit accounts, another factor that influences your FICO Score.

The Takeaway

Paying your cell phone bill likely won’t help you build credit. However, there are steps you can take if you’d like your phone bills to affect your credit score. This includes using your credit card to cover your phone bill and then making on-time payments on your balance. You can also build credit with cell phone payments by getting them reported through a third-party company. No matter how you do it, building credit can be crucial, as it opens the door to future financial opportunities.

Looking for a new credit card? Consider credit card options that can make your money work for you. See if you're prequalified for a SoFi Credit Card.

Enjoy unlimited cash back rewards with fewer restrictions.

FAQ

How long does a cell phone bill stay on your credit card report?

Cell phone payments usually aren’t reported to the credit bureaus. In turn, they won’t show up on your credit card report. However, if you miss payments, the account can become delinquent, and delinquent accounts can stay on your credit report for up to seven years.

Will missed payments on my cell phone bills hurt my credit score?

Missed cell phone payments can hurt your credit score if the account falls into delinquency and gets turned over to collections. Delinquency can linger on your credit report for up to seven years.

Does upgrading my phone build my credit score?

Your cell phone carrier generally doesn’t report to the credit bureaus. Therefore, any changes to your cell phone plan, such as a phone upgrade, will not build your credit score.

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Photo credit: iStock/Kanawa_Studio

SoFi Credit Cards are issued by SoFi Bank, N.A. pursuant to license by Mastercard® International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

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If you’re in the market for a new car and are comparing financing options, it may be helpful to know that leasing a car can help you build credit. The big “if” is that this typically only applies if you manage the lease responsibly by paying your debt on time.

In most cases, you’ll need to have good credit to qualify for a lease on a car. If you have poor or no credit, you may have better luck getting an auto loan, although your interest rate may be high. Whether you opt to lease a car or buy one with an auto loan, your payment history is usually reported to the major credit bureaus. As such, making on-time and regular payments can help build your credit.

Leasing vs Buying a Car

When you buy a car, you agree on a purchase price with the seller. You can then either pay the full amount of the car at the time of purchase or use an auto loan for some or all of the purchase amount.

With a lease, you may put some money down and then pay a fixed amount each month for the duration of the lease. Your monthly lease amount will be based on how much the car is worth at the end of the lease period.

At the end of your lease, you can either return your vehicle to the lessor or buy your leased car.

It’s also important to keep in mind that leasing a car often comes with some restrictions on how you use your car, which is not the case with buying a car. If you lease, you might have limits on the number of miles you can drive during the lease term, for instance.

Both buying and leasing a car can impact your credit score since your monthly debt obligation and your payment history (positive or negative) are usually reported to the big three credit bureaus and show up on your credit report. A car lease is typically reported, as it’s considered an installment loan.

Recommended: Does Applying for a Credit Card Hurt Your Credit Score?

Pros and Cons of Leasing a Car

Beyond knowing whether leasing a car builds credit, it’s important to be aware of the pros and cons of leasing a car. By understanding the upsides as well as the drawbacks, you’ll be better able to choose between leasing or buying a car.

Here’s an overview of the major pros and cons of leasing a car to consider:

Pros	Cons
Leasing can often offer lower monthly payments than buying the car outright.	There may be restrictions on how you use the vehicle, such as the number of miles you can drive during the lease.
You can potentially upgrade your car every few years.	You don’t actually own the car, so you won’t build any equity to show for your monthly payments.
The lease may include coverage for maintenance and some repairs.	You may get charged for excessive wear and tear on the vehicle.

Recommended: What Is a Charge Card?

Ways Leasing a Car Builds Credit

In most cases, your lessor will report the payments you make on a leased car to the major credit bureaus. This means that what’s on your credit report will include a car lease listed as an installment loan and your payment history will be recorded. This can help your credit if you make on-time payments, but it may have a negative impact if you miss a payment or the lease becomes delinquent.

Recommended: When Are Credit Card Payments Due?

Can You Lease a Car With Bad Credit?

The exact credit score needed to lease a car will depend on the lender or lessor that you use, but you generally will need to have good credit (typically 700+) to qualify for a lease. If you don’t have a good credit history or are still working on building your credit, leasing a car may not be the right fit for you.

When credit is extended to those with a lower score, it can be associated with a higher rate of car repossessions, meaning the lessee defaulted on the loan.

Alternatives to Leasing a Car

If you’re not able to or don’t want to lease a car, you do have some other alternatives.

Buying a Car With an Auto Loan

You might qualify more easily for a car loan rather than a lease if your credit isn’t great. While your monthly payment may be higher with a purchase as compared to a lease (since you’re buying the car rather than just leasing it for a short period of time), that may still end up being the right option for you.

You will want to keep in mind that auto loan interest rates often vary depending on your credit score. That means that someone with fair credit will likely have a higher interest rate than someone with good or excellent credit.

Recommended: Understanding Purchase Interest Charges on a Credit Card

Using a Cosigner

Another possibility if you can’t qualify for a lease is to use a cosigner. If you have a trusted friend or family member with good or excellent credit who is willing to cosign on your auto lease, you may stand a better chance of getting approved.

When you use a cosigner, the potential lessor can use the credit score and profile of both the primary applicant and the cosigner in determining whether to approve the lease.

Making a Large Down Payment

If you’re able to, you might consider making a large down payment as part of your auto lease. While you still may not be approved, providing a large down payment shows the potential lessor that you are serious and committed. Making a large down payment also will lower your required monthly lease payment, which may help you get approved as well.

Tips for Building Your Credit for the Next Lease

If you want to build your credit to prepare for your next car lease, there are a couple of things you can do:

•   Improve your overall financial situation. For one, you can work on solidifying your finances overall, including setting up a budget and paying down debt. Remember that owning a car means you have to pay not only for your monthly car payment but also auto-related expenses, such as repairs, gas, and car insurance.

•   Use credit cards responsibly. Responsibly using credit cards is another way to build your credit profile. Make sure you’re paying off your monthly statement in full each and every month.

The Takeaway

Leasing a car can build credit in much the same way as taking out an auto loan. When you lease a car, it is reported as an installment loan on your credit report. Your payments (either on time or late) are also reported to the major credit bureaus and can have a positive or negative impact on your credit score, depending on how you manage your debt.

If you’re looking to build your credit profile, another path to consider might be a credit card.

Looking for a new credit card? Consider credit card options that can make your money work for you. See if you're prequalified for a SoFi Credit Card.

Enjoy unlimited cash back rewards with fewer restrictions.

FAQ

Does leasing affect your credit score?

Yes, leasing can affect your credit score since activity is usually reported to the major credit bureaus in a very similar way to an auto loan. A lease will be reported as an installment loan, and your payment history will be included on your credit report. That means that regular and on-time payments can help build your credit score, while late payments or delinquencies can hurt your credit score.

Can I lease a car with a low credit score?

Generally, potential lessors are looking for lessees with good credit or better. There are a variety of reasons for this, including a higher rate of delinquencies or car repossessions associated with less favorable credit. If you have a low credit score, you may not be able to qualify for a lease and may need to consider alternatives.

What is the minimum credit score I can lease a car with?

The exact minimum credit score that you’ll need to lease a car will depend on a variety of factors, including the specific lessor you’re working with, the car you’re considering leasing, and your overall financial situation. Many lessors are looking for people with good credit or better, often 700 or higher. If your credit is below that, you may not be able to qualify for a lease.

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Photo credit: iStock/EmirMemedovski

SoFi Credit Cards are issued by SoFi Bank, N.A. pursuant to license by Mastercard® International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

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Marriage doesn’t directly affect your credit scores since you and your spouse will each still maintain separate credit histories. However, both of your credit histories can affect any shared accounts and future possibilities of taking out a loan together.

Or, if you live in a community property state and take out loans after getting married, both of you could be responsible for that debt. Here’s a closer look at what happens to your credit when you get married.

What if Your Spouse Has a Bad Credit Score?

First off, if your spouse has a bad credit score, your credit won’t directly be impacted once you get married, since your marital status doesn’t show up on your credit reports.

If either of you had loans before you got hitched, then they’ll simply remain on your respective credit reports. The same goes for any individual loans you take out after you’re married. One notable exception is if you were to apply for loans, such as a mortgage, together. In this case, the rates and terms you may qualify for could be less competitive if your spouse doesn’t have a good credit score.

Or, if you were to open a credit card with both your names on it (or an account where one person is the primary cardholder and the other is an authorized user on a credit card), both of your financial behaviors will affect your future credit score. Say your spouse has a history of late payments, which would have a major impact on their credit score. If they were to miss a payment on your joint account, then both your credit scores could be affected, since your name is also on the account.

If possible, discuss the pros and cons of joint accounts and other financial matters with your spouse. This includes coming up with a plan to help them build their score before you apply for joint loans.

Tips for Building Your Credit Score With Aid From Your Spouse

If either you or your spouse wants to build credit, here are some best practices for doing so:

•   Review your credit report. Checking your credit history reports from all three major credit bureaus (Experian^®, Equifax^®, and TransUnion^®) can give you some insight into what is affecting your score. That way, you can use those insights to change your financial behavior. Plus, if there are any errors that may affect your score, checking your credit report will help you spot and dispute them.

•   Continue to make on-time payments. Paying your credit card bills on time is a major factor affecting your credit score. Doing so consistently signals to lenders that you’re being responsible with credit.

•   Hold off on opening new accounts. Each time you apply for a loan, a hard inquiry will occur, which could temporarily lower your score by several points. Too many hard inquiries within a short period of time could signal to lenders that you’re stretched thin financially and need to rely on credit. As such, be mindful about when and how often you’re applying for new accounts.

•   Request a credit limit increase on your credit cards. Credit utilization is another major factor affecting credit scores. It looks at the overall credit limit of your revolving accounts (such as credit cards) compared to your overall balance. If you can increase your credit limit, it could lower your credit utilization, which is favorable for your credit score.

Will Changing Your Name Affect Your Credit?

Changing your last name to your spouse’s last name after you’re married won’t affect your credit. However, it will result in an update to your credit report. The major credit bureaus should update your credit report automatically once lenders start reporting your credit activity using your new name. When this happens, your old name will still remain on your credit history, but as an alias.

To ensure your new name gets reported on your credit report, you’ll need to notify your lenders. It’s also a good idea to update your name with the Social Security Administration and any other relevant official entities.

Recommended: Breaking Down the Different Types of Credit Cards

How Cosigning a Credit Card With a Spouse Can Impact Your Score

Becoming a cosigner means you’re legally agreeing to be responsible for the other party’s debt. In other words, acting as a cosigner can affect your score positively or negatively, depending on your spouse’s financial behavior.

For example, if your spouse consistently makes on-time payments when credit card payments are due and keeps their credit utilization low, then your credit score could be positively affected.

However, if they make late payments or, worse, the account gets sent to collections, your score and theirs could take a hit. Still, you might decide it’s worth the risk if you’re hoping to help your spouse establish credit.

Do You Share Debt When You Get Married?

Any debt that you or your spouse had before you got married will remain each of your own responsibilities. Once you’re married, however, any joint debts are shared. Whether debt that’s only taken out in one person’s name is considered shared debt will depend on the state you reside in.

If you live in any of the following community property states, both you and your spouse will be responsible for all debts acquired during the time you’re married, even if they’re not joint debts:

•   Arizona

•   California

•   Idaho

•   Louisiana

•   Nevada

•   New Mexico

•   Texas

•   Washington

•   Wisconsin

In five other states, residents can opt into community property laws. These states are Alaska, Florida, Kentucky, South Dakota, and Tennessee.

If you’re unsure of what you and your spouses’ responsibilities are, or if you have any concerns related to marriage and credit scores, it’s best to seek the advice of a legal expert.

Should You Join Your Credit Accounts After Getting Married?

Merging your credit accounts is a decision that only you and your spouse can make, and it will require a discussion about your expectations and the basic credit card rules. One of the main benefits of merging your accounts is the ability to simplify your finances. Doing so could make it easier to keep records and compile documentation for tax returns.

However, if you will both be responsible for debt, both of your credit scores could be affected if either one misses a payment, for example. You can consider keeping one credit account in each of your names in case of an emergency, even if you do decide to merge your accounts. And whether you’re choosing a joint bank account or a joint credit card account, make sure to shop around and compare your options.

Recommended: Comparing Joint and Separate Bank Accounts in Marriage

Discussing Credit With Your Spouse Before Marriage

Communication is key in your relationship, even before you’re married. It’s crucial that you have a detailed conversation with your partner about both of your financial situations. This includes any debt incurred, as well as any behavior that could negatively affect your finances. After all, it’s “‘til death do us part” (and what happens to credit card debt when you die could impact your finances as well).

To help prepare for your financial future together, consider discussing plans you have that may involve the need to rely on your credit, such as buying a house. That way, if neither you nor your spouse has an ideal credit score, you can come up with a plan to work on it together.

The Takeaway

Getting married doesn’t impact your credit score, but securing joint credit cards and loans could influence your scores, for better or for worse. It’s wise to understand each other’s credit positions and how your management of lines of credit and installment loans can contribute to both of your credit scores. For instance, you may decide to have separate credit cards in some situations.

Looking for a new credit card? Consider credit card options that can make your money work for you. See if you're prequalified for a SoFi Credit Card.

Enjoy unlimited cash back rewards with fewer restrictions.

FAQ

Do lenders look at both spouses’ credit scores?

Lenders will look at both spouses’ credit scores if they’re applying for a loan jointly. Otherwise, if you only want one name on the account, the lender will only look at that person’s credit.

Can credit be denied based on marital status?

Credit issuers and lenders are not allowed to deny credit based on your marital status. This is due to protections offered by the Equal Credit Opportunity Act against discrimination when applying for credit.

What happens if I marry someone with low credit?

Your credit score won’t be directly affected if your spouse has a low credit score since your individual credit report is still yours. However, it could impact your score if you apply for credit jointly and your spouse doesn’t handle the shared account responsibly. It could also impact you in terms of what joint loans you may be able to qualify for, as well as what terms you receive.

Does my spouse’s debt merge with mine?

Any debt that you and your spouse have before you get married will remain separate. You’ll share debts if you have joint loans. In some community property states, both spouses are considered responsible for all debts acquired during the marriage, even if only one name is on them.

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Photo credit: iStock/LightFieldStudios

SoFi Credit Cards are issued by SoFi Bank, N.A. pursuant to license by Mastercard® International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

This article is not intended to be legal advice. Please consult an attorney for advice.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

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Gas credit cards are an option that can help cut the costs of getting around. There are a few different types of gas credit cards to consider: branded gas cards that only work at specific gas stations, branded gas credit cards that you may be able to use elsewhere, and regular rewards credit cards that offer cash back or other incentives at the pump.

If you’re curious about the pros and cons of these cards, read on.

What Is a Gas Credit Card?

The term “gas card” can refer to a variety of different products (more on that in a moment). But at its most basic level, a gas credit card is a credit card that allows the cardholder to save money on gas, either with per-gallon discounts, cash back rewards, or other incentives.

Given the fluctuations in the average price of gas, these cards can be an excellent way to lower your overall transportation costs, especially if you drive often. However, like any credit card, they do come with both risks and benefits

Types of Gas Cards

As mentioned above, “gas credit card” and “gas card” can actually refer to several different products. Here’s a closer look.

Closed-loop gas cards

What is known as a closed-loop gas card is a card that can only be used at a specific gas station brand. They earn the cardholder discounts or rewards on money spent on that brand of fuel. They cannot be used at other gas stations or stores. This can make them convenient for those people who almost always go to the same gas station.

Of course, that limitation can also be too restrictive. Some people may want a card with more flexibility and capabilities. In addition, closed-loop gas cards can come with high interest rates, so if you don’t pay off your balance in full each month, you may actually end up spending more on gas overall.

Cobranded Gas Station Credit Cards

When comparing gas station credit cards vs. gas credit cards, it’s important to note that the latter are cobranded. That means they bear the logo of both the gas station and a major credit card issuer, such as Visa or Mastercard. These cards may offer specific rewards at the pump. However, because they’re part of a major card network, they can also be used elsewhere.

These credit cards offer the benefit of being available for more general, all-purpose use. Of course, they also make it more possible to rack up debt on non-gas-related expenses, like cool shoes, the latest mobile device, or just about anything. As is true with any credit card, paying off your balance on time and in full each month is the best way to avoid paying interest on your purchases, which can quickly eclipse any rewards you might earn.

Recommended: Understanding Purchase Interest Charges on Credit Cards

Traditional Gas Rewards Credit Cards

Finally, regular rewards credit cards may offer cash back, miles, points, or other rewards at the pump and elsewhere. Some rewards credit cards may allow borrowers to choose specific categories in which they’ll earn rewards at a higher rate, and the fuel pump might be one of those categories.

Traditional rewards credit cards can offer significant flexibility in how and where you get rewarded for spending your money, so this could be an excellent choice for those whose budget fluctuates over time.

For instance, perhaps you spend a lot on gas over the summer because you’re taking road trips, but less so during the fall and winter. A traditional rewards credit card may allow you to choose gas stations as a category for part of the year — and another, more relevant category (like grocery stores) for the rest.

However, like all credit cards, they do come with the risk of falling into debt by carrying an ever-larger revolving balance.

How Do Gas Credit Cards Work?

Here’s how a gas card works in most situations: Although there are several different types of gas credit cards, they typically sync up with how any credit card works. You use the card at the point of sale to purchase gas and reap rewards or discounts. Usually this is done by swiping or tapping the card at the fuel terminal or, if it’s not a closed-loop card, at another point-of-sale system.

With non-closed-loop gas credit cards, you may also be able to use the card to make online purchases by typing in the relevant card information. (Always make sure the website you’re purchasing from is legitimate and secure before supplying your credit card number to avoid credit card fraud.)

Like any credit card, gas credit cards usually charge interest on revolving balances. That is, money you charge on the card and don’t pay off at the end of the statement period. Interest rates can be hefty — upwards of 20% APR (annual percentage rate) — which is part of what makes falling into credit card debt so possible. That’s why paying off your balance in full and on time, each and every month can be crucial.

If you can’t, you might consider consolidating your debt with a 0% balance transfer or personal loan or you might work with a skilled credit counselor.

Things to Consider Before Applying for a Gas Credit Card

While a gas credit card can help you save money at the pump, like any other credit card, it can also put you at financial risk, especially if you’re already struggling to make ends meet and pay down debt.

In addition, applying for a gas credit card will result in a hard inquiry on your credit report, which can lower (although usually only in the short-term) your credit score and possibly shift your credit score range.

How to Get a Gas Credit Card

In terms of how to get a gas card, it’s similar to applying for a credit card of any kind. There will be information you need to share about yourself and your finances on a gas card application.

You can usually apply for gas credit cards at the gas station offering one or online. The application process will typically require basic demographic information, including your name and address, as well as financial information such as your employment situation and annual income. Once you’re approved for the card, you’ll receive it in the mail and can start using it for gas purchases — and, if it’s a major network credit card, purchases elsewhere too.

Putting Money on a Gas Card

In addition to gas credit cards, there are also reloadable prepaid gas cards which are not credit cards. They’re more like debit cards in that you can use them only to access a finite amount of preloaded money on the card. These types of cards can be a useful tool for managing gas spending and controlling your budget. You can load them with money at the gas station or online.

How to Pay With a Gas Card

How to pay for gas with a card works just as it would with any other card. You use it at the point-of-sale system (or present it to the person at the pump if you’re in New Jersey).

If you’re using a refillable gas card, you’ll need to load money on it ahead of time. If you’re using a credit card, you’ll get a monthly statement listing everything you’ve spent over the billing period and will have the opportunity to pay it off in full, which is a wise move vs. paying the minimum amount.

Is a Gas Credit Card Right for You?

If you find yourself spending a lot of money at the fuel pump, a gas credit card could help you pinch some pennies and get where you’re going for less. But like other credit cards, the risk of going into debt — or at least paying more than you need to after interest — is real. A prepaid credit card for gas could be a good middle-ground option to help you stick to your transportation budget and manage your gas money budget more easily.

The Takeaway

There are multiple different types of gas credit cards, but they all generally have the same benefit: making the cost of gas more affordable by providing discounts or rewards at the pump. Whether you opt for a gas credit card or a reloadable gas card, this kind of product can make budgeting simpler, as long as used wisely.

Looking for a new credit card? Consider credit card options that can make your money work for you. See if you're prequalified for a SoFi Credit Card.

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FAQ

What is the difference between a gas card and a credit card?

People may use the term “gas card” to refer to prepaid gas cards or gas credit cards specifically designed to offer the cardholder rewards at the pump. A regular credit card doesn’t necessarily offer any specific fuel savings, but a gas credit card can.

Does a gas card affect your credit?

If you apply for any credit card, the issuer will run a hard inquiry on your credit history, which may have a short-term negative effect on your credit score. In addition, late payments and high balances can drive your score down, but paying off your debt in full and on time can help create a healthy credit history.

Can you buy other things with a gas card?

That depends on the particular gas credit card you have. Some are cobranded by Visa or Mastercard and can be used for other purchases. However, some may be used strictly for gas purchases at certain outlets.

Can you get cash back from a gas card?

Some gas credit cards offer cash back rewards. You can also find unlimited cash back rewards credit cards that aren’t specifically designed for gas savings but can still help you earn back a percentage of every dollar you spend.

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Photo credit: iStock/Eleganza

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

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If you’re responsible about paying your cable bill on time, your cable bill likely won’t impact your credit score at all. Payments on your cable bill generally are not reported to the credit bureaus — unless they’re seriously late. In that case, if your payments are late enough to be sent to collections, you could see your score drop.

Also, if you use a credit card to pay your cable bill, it could impact your score, depending on how you manage those payments. Learn more here.

What’s a Cable Bill?

A cable bill is a statement for an unpaid entertainment service or subscription, such as a cable television subscription or package plan. It might include costs such as the base price of the plan or service, along with other fees.

Cable bills fall under the “utility bills” category, which includes other household expenses, such as electricity, water, and gas. However, unlike those essential utilities, cable service might be one of the first expenses to cut if you’re living on a budget.

Recommended: Does Applying for a Credit Card Hurt Your Credit Score?

How Not Paying Your Cable Bill Affects Your Credit

Your cable bill generally doesn’t affect your credit score — that is, unless you fail to pay it.

On-time cable bill payments won’t help you build credit, nor will they strengthen it. That’s due to the fact that cable servicers don’t traditionally report timely payments to the major credit bureaus (Experian®, Equifax®, and TransUnion®).

If you’ve missed multiple payments, servicers can do one of two things: charge off the unpaid balance or send it to collections. In both situations, your credit score will take a hit.

Recommended: What Is a Charge Card?

How Do Late Cable Bill Payments Affect Credit Score?

Whether paying a cable bill late affects your credit depends on how late you are with payment. Typically, late payments are reported to credit bureaus when they’re at least 30 days overdue and are marked delinquent.

If you provide a late payment after your due date but before it’s sent to the bureaus, the consequences are at your service provider’s discretion. However, if the payment was made after the late payment was reported or you missed a payment entirely, your credit score will usually drop.

Recommended: When Are Credit Card Payments Due?

How Long Does Late Cable Bill Payment Negatively Impact Your Credit?

Late payments that are reported to the credit bureaus have a lasting effect, whether it was one indiscretion or a chronic occurrence. Late cable bill payments can stay on your credit report for up to seven years.

As such, if you’re finding yourself routinely struggling to put aside enough for your cable bill, you might look into methods for saving on streaming services.

How to Use Your Cable Bill to Build Credit

Paying bills with a credit card is a straightforward way to establish credit when you’re new to it. If you’ve been approved for your first credit card, you might consider using it to pay for your cable bill.

Then, when your credit card bill is due, you can make a manual payment. Even better, set up automated bill payments ahead of time so you never miss a bill.

As you make on-time payments on your credit card, your card issuer will routinely report your positive payment data to the credit bureaus. Over time, with responsible credit card repayment and keeping your revolving debt manageable, you can build your credit.

Recommended: Tips for Using a Credit Card Responsibly

Alternative Ways to Build Credit

If you’ve never had credit or you want to take steps to positively impact your credit profile, here are a few other strategies to build credit:

•   Get a secured credit card. A secured card can offer a small credit line to new credit users. It requires a deposit, which the card issuer typically sets as your credit limit. As you use your card up to this limit and repay it, the issuer reports your payment activity to the bureaus.

•   Get a retail card. Store-branded credit cards, such as those from department stores, gas stations, or retail brands, can be easier to get than traditional credit cards. However, they usually have lower credit lines.

•   Make payments on time. When you do open a new credit card or installment loan, stay on top of monthly payments, as payment history accounts for 35% of your credit score. Organize bills to identify when your due dates are, and consider enrolling in autopay to conveniently pay your bills on time.

•   Apply for an installment loan. This might include consumer loans, such as a secured personal loan or an auto loan, to help you build your credit file. If you’re a college student and need additional financial aid beyond scholarships, grants, or work-study, a student loan can help pay for your education and establish your credit profile. Always seek out federal student loans first before a private student loan. Federal loans offer greater borrower protections and benefits.

•   Ask your landlord to report rent payments. Most landlords don’t report your on-time rental payment data to the credit bureaus. However, more third-party services, including Experian’s own Experian RentBureau®, are making this possible. Ask your landlord if they are willing to share your good rent payment activity with credit bureaus for your credit file.

•   Become an authorized user. Ask someone with whom you have a close relationship, such as a parent, grandparent, spouse, or sibling, if they will add you to their credit card account as an authorized user. Some lenders report good payment habits to the credit bureaus for all users on the account. Even if you’re not liable for making payments on the credit card, the reported data can establish your credit and build your score.

Recommended: Understanding Purchase Interest Charges on Credit Cards

The Takeaway

Although your cable bill typically doesn’t impact your credit score, staying in good standing on the account can help keep your credit out of trouble. That’s because seriously overdue payments can show up on your credit report, where they’ll remain for up to seven years. On the other hand, one way that you can get your cable bill payments to have a positive effect on your credit is by using your credit card to pay it and always paying your bill on time.

Looking for a new credit card? Consider credit card options that can make your money work for you. See if you're prequalified for a SoFi Credit Card.

Enjoy unlimited cash back rewards with fewer restrictions.

FAQ

Does paying cable bills on time build your credit score?

Cable providers typically don’t report on-time payments to the credit bureaus. Since this data isn’t shared with the bureaus, timely payments don’t directly affect your credit score. However, if you pay on time with a credit card, that could positively affect your score.

Do late cable bill payments hurt your credit score?

Late cable bill payments affect credit scores if they’re marked as a charge-off by your provider or are sent to a debt collector. Accounts with these statuses are reported to credit bureaus and harm your score.

Are cable bill payments reported to a credit bureau?

Cable bill payments typically aren’t reported to credit bureaus. However, multiple missed payments may be reported if they have been charged off or are in collections.

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Photo credit: iStock/damircudic

SoFi Credit Cards are issued by SoFi Bank, N.A. pursuant to license by Mastercard® International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

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