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How Rent, Utility Bills, Bank Closures, and Insurance Claims Are Reported

This guide presents selected U.S. government consumer education from CFPB. References to “we” or “us” in the source material refer to the issuing agency. Source dates and links appear below.

Will it hurt my credit if my bank or credit union closed my checking account?

It could. The big three consumer reporting companies – Experian, Equifax, and TransUnion – typically do not include information about your checking account or check-writing history in traditional credit reports. However, checking account reporting companies do collect and report on information related to your checking account.

Tip

Some banks and credit unions use additional information, such as information from your credit report, to determine whether or not to let you open a checking account. Reports from specialty checking account reporting companies are also considered.

Specialty checking account reporting companies, which include Chex Systems and Early Warning Services, collect and report information about checking accounts you’ve had in the past. If you’ve had your account closed due to an unpaid negative balance, the bank or credit union would typically report this “involuntary closure” to a checking account reporting company. You may also be reported if you were suspected of fraudulent activity by the bank or credit union. Banks and credit unions often use reports from these companies to help decide whether to offer you a checking account and the type of checking account to offer you.

Also, debts that come from negative closing balances are sometimes passed on to debt collectors, and those debt collectors might supply information to the big three consumer reporting companies that the debt is in collections. That would affect your credit report and score.

You have the right to know what information is in your report(s). Get more information about requesting a copy of your checking account report.

If you review your report and spot errors, you can file a dispute and then ask that the company correct the error. You should also dispute the inaccurate information directly with the bank, credit union, or merchant that first reported the information to the checking account reporting company. Get more information about disputing information found on your checking account report.

If you’ve had difficulty opening or managing a checking account, see our consumer guides on choosing and managing checking accounts. You might also consider getting a prepaid card.

View guide on selecting a lower risk account
View guide on managing your checking account
View guide on checking account denials

Submit a complaint

If you have a problem with credit reporting, you can submit a complaint to the CFPB online. We’ll forward your complaint to the company and work to get you a response.

Does my history of paying utility bills, like telephone, cable, electricity, or water, go in my credit report?

It might. Most utility companies don’t provide consumer payment history data to the big three credit reporting companies about whether or how regularly you pay on time. However, if you fail to pay a bill and it is sent to a collection agency, the debt could show up on your credit reports from any of the three nationwide credit reporting companies.

If you have unpaid utility bills that have been sent to a collection agency, that debt will most likely appear on your credit reports.

And at least one specialty consumer reporting company, the National Consumer Telecom & Utilities Exchange (NCTUE), shares information about new accounts and payment histories among the over 60 large telecommunications, pay TV, and utility companies that are members. A NCTUE member may use this information to decide whether to require you to pay a deposit before receiving services.

The CFPB has put together a list of some of the more common specialty consumer reporting companies, including NCTUE, along with some information about how you can obtain copies of your reports.

Does late rent affect my credit score?

Yes. The big three consumer reporting agencies, Experian, Equifax, and TransUnion, use rental payment and related debt collection information in their credit reports, although the way they handle this information varies.

There are also specialty consumer reporting agencies that compile information just for landlords to help them decide whether or not to rent to someone. These agencies collect information such as your name, previous addresses, amount of time at each residence, and payment history records from your past landlords.

Just like with the big three consumer reporting agencies, you can get free copies of your reports every 12 months from many of the specialty consumer reporting agencies. Other specialty consumer reporting agencies may charge you a fee for your report. We’ve put together a list of some of these specialty consumer reporting agencies, along with information about how you can obtain copies of your reports. Keep in mind that not every agency will have information about everyone.

If a landlord denies your rental application due in full or in part to information on your specialty report, this is called an “adverse action.” The landlord must provide you with an adverse action notice that includes the name and contact information of the consumer reporting agency from which the landlord got the consumer report. If you request it, the consumer reporting agency, including a specialty agency, must then give you a free copy of your consumer report that factored into the decision.

Tip:

Positive rental payments can help build your credit. If you’d like to have rental payments reported to credit reporting agencies, ask your landlord if they participate in a rental reporting program (often through a rental payment app). Be sure to consider any fees that might be charged for these services.

Do auto and homeowners insurance companies share my information about claims?

Yes. There are specialty consumer reporting agencies that collect and report information about the insurance claims you have made on your property and casualty insurance policies, such as your homeowners and auto policies. They may also collect and report on your driving record.

Insurance companies use information in these reports to choose the types of policies they offer you and the premiums you pay.

Just like with the big three consumer reporting agencies – Experian, Equifax, and TransUnion – you can get free copies of your reports every 12 months from many of the specialty consumer reporting agencies. Other specialty consumer reporting agencies may charge you a fee for your report.

Keep in mind that not every agency will have information on everyone. You have to request the reports individually from each reporting agency. We’ve put together a list of some of these specialty consumer reporting agencies, along with some information about how you can obtain copies of your reports.

A consumer reporting agency, including a specialty agency, must also give you a free copy of your consumer report upon request if you have received an “adverse action notice”.

If an insurance company turns you down for a homeowners insurance policy based on a consumer report, this is an example of an “adverse action.” The insurance company must provide you with an adverse action notice that includes the name and contact information of the consumer reporting agency from which they got the consumer report. You have the right to get a free report from the consumer reporting agency identified in an adverse action notice. Review the report to see what information the consumer reporting agency has on file about your insurance history. You can then ask for corrections of any errors in the report.

Tip:

Check your credit reports before you shop for insurance or if you have been denied coverage or offered higher premiums in the past. Review your reports to make sure they do not contain mistakes. If they do, you can ask for corrections of any errors in the report. Learn how to dispute an error on your credit report.

Sources and publication details

The federal agency source text is U.S. government work in the public domain. Fynoptic selected, adapted, and formatted it for this guide. No agency endorsement is implied. Follow the linked sources for current program details and the rules applicable to your circumstances.

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