Your cell phone bill is a perfect example of how things affect Your Credit Score without an ounce of fairness attached to it. If You pay on time, it won’t help You. If You stop paying, then the bill gets sent to collections and can absolutely CRUSH Your Credit Score. I learned this first hand when an ex-girlfriend forgot to pay her final cell phone bill when she moved out of state and because I co-signed (which is a no-no), the collection landed on My Credit report. It cost me 165 points! Overnight!
Don’t let this happen to You. No matter how bad the service was or how much You don’t want to pay that $200 penalty, is it really worth it to be “right” and lose that much of Your Credit Score?