Is it necessary to have good credit to get a cell phone plan?
A low credit score can have far-reaching effects, including the difficulty to get credit cards or traditional loans. It may also have an effect on your ability to join a cell phone plan. Even if you have a low credit score, you can still locate a carrier, but your options will be limited and your charges will be higher. If your credit score is sufficiently low, a prepaid phone plan may be your only alternative.
Check Your FICO Score
Cell phone providers use your credit score to determine whether or not you will pay your bill on time each month. You won’t be able to receive the premium offers that carriers give to individuals who have a superior credit management track record if you don’t have a high credit score.
While there is no standard procedure for determining what credit score qualifies you for the best prices, T-Mobile claims that half of Americans do not have a high enough credit score to qualify for the top wireless plans the company provides.
Disadvantages of Having a Bad Credit Score
A better score entitles you to benefits such as free basic phones, no-money-down contracts, and the option to pay for high-end handsets through an installment plan. A low credit score, on the other hand, has an influence on the sort of plan you may acquire and the amount you will pay.
Sprint, for example, evaluates the customer’s credit score to decide if a deposit is required, how many lines may be added to the account, and whether the account has a spending restriction. Without strong credit, Verizon and AT&T Next will not allow you to take advantage of features like the option to pay off a new phone over time or upgrade early.
Option for No Credit Check
A low credit score does not preclude you from enrolling in a major carrier’s cell phone service. For example, T-mobile does not need a credit check. However, in order to qualify for the no-credit-check option, you must furnish your own device, acquire a certified pre-owned phone, or purchase a new Sprint phone at full price.
It also helps if you already have a relationship with the carrier. T-Mobile evaluates current customers based on whether they have paid their bills on time in the preceding 12 months, not on their credit ratings.
Minimal long-term consequences
While a low credit score may cost you more money up front, you will not spend much more in the long term than someone with higher credit. According to Consumer Reports, the major carriers’ promotional programs on new phones effectively equate to an interest-free loan that is paid off over the course of two years on your bill.
If you pay more up front, you will make up for it with a cheaper monthly fee. If you make a deposit, you will receive it back if you switch carriers or stop service.
Plans for Prepaid Phones
If everything else fails, if you don’t have good credit, you can acquire a prepaid phone plan. Prepaid plans allow you to purchase the quantity of cellular services you require on a monthly basis.
In most situations, you may purchase your phone individually and the plans on an as-needed basis. Some plans, however, restrict the sorts of phones that may use their services, and the cost grows as your minutes, messages, and necessary services increase.
