Does having an AT&T account help your credit?
Approval for loans, credit cards, mortgages, and even apartment renting depends on a strong credit history. Others claim that creating an account with particular service providers, including AT&T Internet, may help your credit. Does having an AT&T cellular account help with credit? Let us narrow in on that.
How Are AT&T Accounts Reported to Credit Bureaus?
To the three primary credit bureaus found in the United States of America—Experian, Equifax, and TransUnion—AT&T does indeed disclose information on consumer payment history. Stated differently, if you pay your bill on time every month and have an AT&T postpaid cellular account, this behavior may show up on your credit reports and eventually help to improve your credit ratings.
Specifically, AT&T reports the following types of accounts.
- Postpaid wireless accounts
- U-verse television/internet accounts
- DIRECTV accounts
- Landline accounts
Thus, if you do responsibly pay your AT&T bills – paying at least the minimum amount due by the due date every month – this positive payment history could be beneficial in proving that you are a reliable borrower.
First of all, it is necessary to focus on the fact that AT&T presents postpaid accounts only, meaning that a customer is charged for the services in a month he or she has used. Consumers who make payments in advance for services are not credited by AT&T and thus do not appear on the credit bureaus.
How Much Does an AT&T Account Boost Your Credit?
On the one hand, I learned that the credit limit that a customer is granted depends on his or her general credit status. If you have little credit history, it would be beneficial to open an AT&T postpaid account and make the necessary and consistent on-time payments as a means of starting to establish a credit history. A positive account of this nature can be particularly beneficial when used to offset negative marks or a low credit history.
Yet, the positive credit impact could be less significant and slower when compared to other credits such as credit cards, auto loans, mortgages, etc. Payment history, average length of credit history, and credit utilization ratios are more influential in credit score calculation models.
And if you already have some credit history and AT&T credit history, opening a new account is not going to have a drastic effect on your credit. The advantage is derived more from the fact that you have consistently made the right payment over the years.
Ways to Build Credit with Your AT&T Account
If you want to leverage your AT&T account to help build or rebuild your credit, keep these tips in mind: If you want to leverage your AT&T account to help build or rebuild your credit, keep these tips in mind:
- It is recommended to switch to paperless billing and arrange automatic deductions from your bank account. This makes it almost inevitable not to meet payment deadlines which is very important.
- Always make a monthly minimum payment due payment on your credit card. Payment history is usually the most significant element for determining the scores, especially concerning timely payments.
- Wait for as long as possible to close your account. Many credit scoring models favor longer, more established accounts. Do not opt out of the service unless it is essential.
- Suspend the issuance of credit cards or accept limited credit applications in the short run. Multiple new accounts means you can have relatively small accounts period and this can negate positive impacts from your AT&T payment history.
- Go through your credit reports at least once a year. Ensure that AT&T is reporting your account and payment information correctly. Dispute any discrepancies.
The Bottom Line
Thus, as it has been mentioned, having an account with the company and making monthly payments to it can contribute to your credit history and scores, yet it usually has a small effect compared to other credit accounts. Consider your AT&T account as one of the credit records that you need to manage properly. Never miss any payment to any of the providers, maintain low credit card utilization, avoid applying for credit often, and regularly monitor credit reports for inaccuracies. Credit history and credit scores for many years are important factors to have great credit.
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