A missed phone or utility bill is generally viewed as one of the less serious entries a mortgage lender might see, but whether it shows at all, and how, depends on the type of bill. A missed mobile phone payment can appear much like a missed credit payment, while a missed gas, electricity or water bill often does not show unless the debt is passed on or reaches a formal default.
This page looks at how these small, everyday bills are recorded, why size is not the only thing that matters, and what to check on your credit file. See our main page on remortgaging with missed payments for the wider picture.
On this page
This page covers
- Credit issue
- Missed paymentsUsually stays on your credit file for 6 years from the date recorded.
- Amount
- Smaller amountsSome lenders treat low-value issues, such as a small utility default, differently from larger debts.
In short
- A mobile phone contract is a credit agreement, so missed payments can show like any other credit account.
- Gas, electricity and water bills are not usually credit agreements, so missed payments often do not show unless the debt is passed on.
- A small missed payment still stays on your file for 6 years once it is recorded.
- A missed bill that reaches a debt collector or a default is treated more seriously than the size of the bill alone.
Do missed phone bills show on your credit file?
A mobile phone contract, particularly one that includes the cost of a handset, is usually a credit agreement, so the provider can report your payment history to the credit reference agencies much like a credit card or loan. Missing a payment can result in a missed payment marker in the normal way, and repeated missed payments can eventually lead to a default being recorded.
A SIM-only contract with no credit element attached may be treated differently by some providers, but many still report payment history. If you are not sure, checking your statutory credit report is the most reliable way to see what has actually been recorded.
What about missed utility bills, gas, electricity and water?
Energy and water bills are usually for a service you have already used rather than a credit agreement, so most suppliers do not report routine late payment to the credit reference agencies in the same way a card provider would. That does not mean a missed utility bill is risk free.
- Paid a little late: often not recorded on your credit file at all, though you may still be charged or chased by the supplier.
- Unpaid and passed to a debt collection agency: can appear on your credit file once it reaches that stage.
- Formally defaulted by the supplier: treated as seriously as a default on any other account, and stays for 6 years from the default date.
For a debt at the more serious end of this scale, our page on remortgaging with defaults explains how a default is generally treated.
Does a small missed payment matter as much as a large one?
Not usually, in terms of how a lender scores it. A missed payment marker generally records that a payment was missed, rather than exactly how much it was for, so a small missed phone bill and a much larger missed loan payment can look similar on the surface. In practice, many lenders and advisers do give more weight to missed payments on larger, ongoing commitments such as loans, cards or mortgages.
That said, a small missed payment is not automatically ignored, particularly if there are several of them, or if it is one of a wider pattern across different accounts. Our page on remortgaging with a low credit score explains how lenders look at your file as a whole rather than any single entry in isolation.
What if the bill went to a debt collector?
Once a debt has been passed to a collection agency, it is generally treated more seriously, whatever the original amount, because it suggests the debt went unresolved with the original provider. If this has happened, check your credit file carefully to see exactly what was recorded, and by whom, since the collector’s entry may sit alongside or instead of one from the original supplier.
- Get your statutory credit report from each agency to see what has actually been recorded.
- Check the amount and dates match what you believe you owed.
- If the debt has been paid, ask for confirmation in writing and check your file updates.
- Query anything that looks wrong directly with the collector or supplier.
How can small missed payments be avoided going forward?
Small bills are often the easiest to lose track of, particularly if they come from several different providers on different dates. Setting up a direct debit for at least the minimum amount, where one is offered, is usually the simplest safeguard, and it also protects your record on any bill that does report to the credit reference agencies.
If missed bills are a symptom of a wider budget that does not stretch far enough, free and confidential advice is available from MoneyHelper, StepChange and National Debtline, and getting help early can stop small missed payments turning into defaults.
What tends to matter with small missed payments
With phone and utility bills, whether and how a missed payment was recorded usually matters more than the amount involved.
| Factor | Why it matters |
|---|---|
| Whether it was recorded at all | Many small missed utility payments never reach the credit reference agencies, while a missed mobile contract payment more often does. |
| How far it escalated | A bill passed to a debt collector or formally defaulted is treated more seriously than one paid a little late. |
| How many small missed payments there are | Several small missed payments across different providers can suggest wider pressure on your budget. |
| Age of the entry | A small missed payment from several years ago, with nothing since, usually carries little weight by the time you remortgage. |
| Other entries on your file | A small missed bill alongside larger credit issues is likely to matter less than it would on an otherwise clean file. |
| Whether it was later corrected | A marker fixed through a query with the provider, or a notice of correction, can help explain an entry that might otherwise look unresolved. |
| Income and affordability | Lenders assess your overall committed outgoings, including regular bills, when working out what you can afford to borrow. |
These are general points, not lender rules. Each lender sets and changes its own criteria.
Information an adviser may ask for
You don’t need all of this to make an enquiry. It helps to know where to find it, because an adviser is likely to ask about most of it.
- Which provider or providers were involved, and roughly when
- Whether the debt was passed to a collection agency, and if so which one
- Whether the bill has since been paid
- A recent credit report from at least one agency
- Your mortgage balance, monthly payment and deal end date
- Recent bank statements and proof of income
Frequently asked questions
Does a missed broadband or TV package payment count?
It can, particularly if the package is billed as part of a credit agreement. Some providers report missed payments to the credit reference agencies in a similar way to a mobile phone contract. Checking your statutory credit report is the most reliable way to see what has been recorded.
Will a small missed payment stop a remortgage on its own?
On its own, a single small missed payment is rarely the deciding factor, especially if it is old and the account is now settled or up to date. Lenders generally look at your credit file as a whole rather than any one small entry in isolation.
Do utility companies check your credit file before you sign up?
Many run a soft or hard credit check to assess risk before agreeing a new supply, particularly for gas and electricity. This is separate from whether a later missed payment gets reported, and a check on its own does not usually affect your file in the way a hard search for credit does.
What if I am disputing the bill instead of refusing to pay?
Contact the provider in writing to raise the dispute and keep a record of the correspondence. If a missed payment marker is later added while the dispute is ongoing, or after you believe it was resolved, you can ask the provider to correct it and check each credit reference agency has updated your file.