Learn more about Utility Alerts

What are telco and utility account inquiries and how do they impact you?

Utility and telco companies provide gas, water, electricity, telephone, and other necessities for both residential and commercial use. 

When you apply for a new utility account, it is considered as applying for credit since utility companies charge you for their services at the end of the month. Which means that they’re extending credit for their services until you pay the bill. 

So, to determine the likelihood of timely bill payment the utility company might run a credit inquiry to check your credit worthiness. This inquiry is considered a soft inquiry and will not affect your credit score and might not show up on your credit report. 

What’s a soft credit inquiry?

A soft inquiry, sometimes known as a soft credit check or soft credit pull, happens when you or someone you authorize (for example, a potential employer) checks your credit report. This can also happen when a company such as a credit card issuer or mortgage lender checks your credit to preapprove you for an offer.

Soft credit inquiry does not impact your credit score and may not appear on your credit report.
 

Steps you need to take if you are a victim of Utilities fraud

• If you recognize the activity, then no further action is required.
• If you do not recognize the activity, you will need to contact the utility company listed in the notification to determine whether an account was opened or not.
• If you already contacted the utility company, and an account, without your authorization or knowledge, was opened using your personal information, please contact Norton 800-543-3562.

Additional Resources

• Learn more about NCTUE security freeze (for utilities) and how to place it  
• Learn more about credit freeze and how to place it

*Consumer Sentinel Network Data Book 2021, published by the Federal Trade Commission in February 2022.