Does Verizon Report to Credit Bureaus? Everything You Need to Know!

Phone that says tap to receive or pay with a dollar sign in the middle of the screenPhone that says tap to receive or pay with a dollar sign in the middle of the screen

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Verizon allows you to lease cell phones through them if you can’t afford to purchase the phones outright. This is a popular way to get the newest models of the most popular films.

Verizon does not report your monthly payments to credit bureaus if you always pay on time. Verizon only reports to a credit bureau if you miss payments on your cell phone or your monthly service.

Please continue reading to learn about how Verizon reports to credit bureaus. We will discuss when they report, how this affects your credit score, and what to do if Verizon sends you to collections.

Situations Verizon Will Report to Credit Bureaus

Many people sign up for Verizon under the impression that they get monthly reports to credit bureaus.

Younger people often see this as a way to build credit when they don’t have any.

However, Verizon will not report your monthly payments to a credit bureau unless it is a negative report.

Unfortunately, that means that leasing a phone through Verizon and making phone payments is not a good way to build credit.

The following are situations that Verizon may report you to a credit bureau.

  • When you have an outstanding bill that goes into collections.
  • If Verizon loses communication with you for an extended amount of time.

Both of these reports are negative situations that you will definitely want to avoid.

Otherwise, they can negatively impact your credit score for years.

What to Do if Your Verizon Bill goes to Collections

If you don’t pay your Verizon bill and they send it to a collections agency, Verizon is washing its hands of the problem.

Unfortunately, this can make things difficult for you.

After Verizon calls a collection agency to handle your outstanding debt, you’ll have to interact with collections instead of paying Verizon directly.

Follow this test below to pay a debt in collections:

  1. Call the recovery options team at Verizon to figure out which collection agency you need to contact.
  2. Pay your collection step over the phone after you figure out which collection agency needs your payment.

It would be best to pay this collection debt as soon as possible so that it doesn’t tarnish your credit report for long.

How Long Will Your Bill Stay in Collections?

Unfortunately, you may be in a situation where you can’t afford to pay your collections debt.

You may also prefer to let the debt drop off if you don’t plan to take out any loans.

Your debt will remain in collections until you pay it, but it’s unlikely to appear on your credit report after seven years.

So, you might be clear if you don’t intend to take a loan out in seven years.

Will Verizon Increase Your Payments After Missing a Bill?

Verizon will not increase your payments after you miss a bill.

However, if they send you to collections, they might not accept you as a customer again.

If you miss a bill, Verizon will charge you a late fee to reinstate your service.

This late fee increases every month you go without paying your bill.

If you don’t pay your Verizon phone bill for 180 days, they will cancel your service and send it to collections.

This bill can include your phone payments and what you owe from unpaid months.

Will Financing a Verizon Phone Build Your Credit?

You may be surprised to discover that financing a phone through Verizon will not improve your credit score.

Verizon only reports to credit bureaus after they send your bill to collections. So, if you miss a payment, you have 180 days before they file a collections report which can damage your credit score.

However, you can get a personal loan through your bank to purchase a Verizon phone and use that payment to build your credit.

Your bank will report these payments to a credit bureau.

Setting up a financing plan can be a great way to build credit if you go through the right people.

Unfortunately, many people make the mistake of financing through Verizon instead of their bank.

Final Thoughts

Verizon only reports bad information about your payments to major credit bureaus.

So, if you’re making monthly payments on a cell phone or a service bill, these payments aren’t improving your credit.

However, if you have an outstanding debt that you owe to Verizon from unpaid phone bills, they will send this information to a collections agency which can damage your credit score.

If you can’t afford to pay your bill, it would be best to communicate your situation to a Verizon representative so that you can find a resolution together.

If you have open communication with Verizon, they’re less likely to send your information to collections immediately.

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