What is a good credit score to get a cell phone?
Credit score also determines things like renting an apartment, car loans, and even cell phone contracts. Telecommunication service providers sometimes run credit when you sign up for a new phone or subscribe to a new service package. But then again, what is the required credit score that one needs to be able to obtain a cell phone? Here’s what to know.
What Credit Score Is Used Most Widely by Most Cell Phone Carriers?
The three major credit reporting agencies, namely Experian, Equifax, and TransUnion utilize a score ranging from 300 to 850. Generally, a validity index greater than 700 is regarded as acceptable while one greater than 750 is considered as ideal.
Many cellular telephone internet service providers also review your credit status before you qualify for the cell phone with installment payments or a monthly service plan. This is also true when you change carriers as many will pull your credit report.
Here are the credit score requirements of the major carriers: Here are the credit score requirements of the major carriers:
- Verizon: Verizon has its specific credit scale, which is not FICO or VantageScore. Ideally, you want to attain a score of 700 or higher to get the best deals out there. Some of the affected people may be required to pay deposits if they have low credit scores.
- AT&T: On this basis, reports suggest that AT&T Internet could pre-approve plans for customers with credit scores of as low as 526. However, to be in a position to be offered no-money-down phones and installment facilities, you may need to score at least 700.
- T-Mobile: T-Mobile also has the requirement for a credit score by which financing new phones is possible – this is 600. However, you might require a higher credit score for options that give little to no money down.
- Sprint: Currently, Sprint does not disclose its credit score minimums. Various customer complaints suggest that one may need a credit score of 700+ for financing through Sprint. You are likely to pay a deposit for lower scores.
Aside from the mentioned main carriers, most of the Mobile Virtual Network Operators (MVNOs) including Boost Mobile, Cricket Wireless, and Metro by T-Mobile also perform credit checks before approving financing. As for MVNOs, they usually suggest credit scores above 600, but they can differ from company to company.
The Effect of Credit Scores on Cell Phone Plan
People with good credit ratings not only get good cell phone deals but also get good service packages.
If your credit does not meet a carrier’s standards, you may have to pay sizeable down payments on new phones. And you may be limited ONLY to prepaid plans. Prepaid plans are usually more expensive every month than postpaid contracts or installment offers.
Here’s how your credit can impact cell phone service options: Here’s how your credit can impact cell phone service options:
- Prepaid plans: They do not ask the borrowers for credit checks. They must pay for the service they want every month before it is rendered to them. Membership begins at $30-$50 per month.
- No contract monthly plans: Sometimes depends on the credit score of the customer when approving the loan. Includes unsecured device payment plans. Cheap, costs start at around $50 for one month.
- Traditional contracts: Usually needs good credit for $0 upfront new phones and lowest interest rates. Service contracts 2 years. They begin at $30+ per month.
Credit scores below 600 mean you will be expected to pay down payments for any phone you desire to be financing. You might be restricted to prepaid service, which is more costly each month.
When you raise your credit standing, you can get better offers for your cell phone and thus pay less per month for phone service.
What Is Credit Score and How Do I Find It?
The first step is to review the current credit reports and FICO or VantageScore from all three credit bureaus.
To obtain your credit reports and scores, you can visit AnnualCreditReport.com where they offer a free credit report once a year. This is the only copy which has been authorized by the government. Free credit score or report? Beware many sites are just signing users up for credit monitoring services that cost $1 per month.
Whenever you check your credit scores make sure you look for mistakes or fake accounts that are pulling down your scores. One can get many mistakes deleted which can give them a quick fix to their credit. You should also identify which segment of your credit requires the most attention – whether it is payment history, usage, or the number of active accounts.
If your scores are under 700, take steps now to improve your credit so you qualify for the best cell phone financing: If your scores are under 700, take steps now to improve your credit so you qualify for the best cell phone financing:
- Always ensure that all the bills are paid on time – this has the highest influence on your scores.
- Credit cards and debts should be paid off
- Do not issue new credit application
- Find errors in your credit reports
At least it is not hard to raise low scores and the savings each month are worth it.
How to Get a Cell Phone with Bad Credit
Furthermore noteworthy is the possibility of restricted mobile phone options and expensive financing should your credit score be now less than 600. There are always carriers however that will link you up. Here are a few strategies for obtaining mobile service with poor credit: Here are some strategies for obtaining mobile service with poor credit:
Prepaid Cell Phone Plans
Currently, almost all the large wireless operators in the United States have an option for fully prepaid smartphones. Mobile money is cheap and affordable, with prices ranging from $30-$50 per month for a few gigs of data. Also, there is no obligation of a long-term contract because you would pay monthly in advance.
Some top prepaid brands include:
- Straight Talk
- Boost Mobile
- Cricket Wireless
- Metro by T-Mobile
- Mint Mobile
The disadvantage of prepaid is that you will be limited to using the provider’s phones, in most cases, you will have to buy these phones at full price or use your phones. However, if one cares to search closely, Straight Talk, Boost, and Cricket also sell cheap prepaid phones.
Pay Security Deposits
Many service providers such as AT&T, Verizon, and Sprint are likely going to grant you a service if you are willing to deposit an amount that the company deems reasonable. Deposit amounts depend on your credit and chosen wireless plan and generally range between $150 and $250.
If you pay all the monthly bills as agreed all wireless carriers will return your security deposit in 6 to 12 months. This makes deposits an affordable option when it comes to getting connected regardless of the credit rating.
Add an Authorized User
If credit approval is an issue, making someone else, who has good credit as an authorized user on your wireless account may help. Most carriers allow this. However, do not forget that the other person will also be expected to cater for the expenses of your cell phone bill.
Spend Less to Clear Down Payments
Another benefit is that since you do not pay per call or minute with prepaid plans, you can begin to save money each month so that eventually you can purchase a new smartphone outright. Or you can accumulate enough cash to make the hefty down payments that go with financing phones with bad credit.
If you save regularly and make payments on time in the next 6 to 12 months, you can reapply for better financing.
Create A Credit History And Wring Out Every Bit Of Creditworthiness Over Time
It is important to understand that there are no quick solutions for credit problems. If funds are limited, qualifying for cell phones with bad credit scores below 600 will be impossible. In the short run, one can avoid overusing the phones by opting for prepaid plans, paying the phone security deposits, and making on-time payments.
However, steady enhancement of credit scores over a period not only unveils improved career offers but also a regular saving on monthly bills. If you currently have a low credit score, this is the best time that you could start rebuilding your credit.
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