If you set things up so that bills are paid automatically out of a bank account does that have any effects on credit rating that are different than if you paid the bills via checks using regular mail? Essentially, does the method of paying a bill affect credit rating any or is the only important factor whether you pay on time?
Most accounts don’t go on your credit reports at all unless they go into collections. Utility bills, cable bills, magazine subscriptions, doctor’s bills, local business bills, etc never get reported unless you are seriously late and they get sent to a collection agency. Direct withdrawal on those won’t affect anything and neither will paying late a few times.
What does go on your credit report is: credit card bills, student loans, most car payments, personal loans through a bank, mortgages and may be few more. Those just get reported on time every automatic withdrawal so there is less of a chance to be 30 or more days late triggering am entry on your credit report. Besides that, it is the same. I used automatic withdrawal for my student loans and it didn’t ever make a special notation of it on my credit reports.
Method of paying a bill does not affect your credit rating. The creditors don’t report how or when you paid your bill (ie. paid it in person on the due date). The creditors just report your deliquency.
Also, if you pay on time is not the “only” important factor, but it is the most significant. The amount of available credit and length of time the account has been open also play major roles.