If I have a debt with a telephone company or other utilities company, how long will it be before they report a bad credit mark to Veda Advantage?
As debt accumulates, so can the negative marks on your credit file. Utility companies are certainly not an exception for the fact that you pay a monthly payment to them just like you do any other monthly bill. They are providing you with a service and they have faith that you will pay it each month. This is exactly what your credit card company, your loan company, and even your mobile phone company does.
If you fail to make that utility payment, they will give you a warning after about 30 days that they will shut off your service. If they shut off your service, they will try for another 30 days. If there has been no payment made, the utility company will report to Veda Advantage after 60 days of non-payment, just like any other creditor would report non-payment after 60 days. They give you a chance before they report you.
The only way to avoid this is to try to work out a payment arrangement with the utility company. By working out an agreement, you are able to avoid negative marks. Otherwise it is a wise idea to satisfy the debt as soon as possible. There is really no way around this one other than paying your bill. If you don’t pay the bill, other charges can accumulate over time, especially if that particular utility was not shut off immediately. If the utility remained on for two months and you are running behind on paying, that can result in two negative marks in a row. If this pattern continues, then you could find yourself in a wild game of catch up that can do major damage to your credit report.
The negative marks will remain on your credit report for a period of 5 years. You cannot have it removed for the fact that all defaults remain in your file for 5 years. The utility company can report that you have satisfied the debt, though. That still does nothing for those negative marks.
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