Almost every time you obtain a new cell phone service provider, they will inquire about your credit score to come up with an offer that you will be eligible for. It enables them to determine how credit-worthy you are to be able to extend service to you, and its ability to determine the probability of you paying your phone bills on time. So what kind of credit score is usually acceptable to or required to obtain approval for phone service from major providers? Below is some basic information about credit checks and recommendations on how to go about taking a new mobile plan.
Minimum Credit Scores
Even though postpaid, services are paid for after the service has been used for some time, most of them demand credit checks.
The minimum credit scores vary slightly among providers:
- Verizon has a credit check; the learner needs to have a credit score of at least 650.
- The company has the following requirements or credit checks where ATT requires the applicant to have a FICO score of at least 700.
- T-Mobile has specific requirements and demands that include a credit score of not less than 600.
- Unfortunately, Sprint does not disclose the minimum credit scores for its users; however, it is well-known that Sprint is more tolerant than other carriers in this regard.
These minimums are not set in stone policy Set out below, are several key policy considerations that arise from the above analysis: They make individual evaluations on each application, and this is possible since the carriers are major players in the industry. They may grant credit to customers who have a low credit rating but might have passed on other requirements. However, to get approved for postpaid cell plans with the major carriers you have to be scoring in the high 600s or above.
Credit Scores: Why It’s Important?
Thus, we have seen that cell phone companies seek customer loyalty because it is in their best interest to have users who will consistently pay their bills every month. It is the reason why the credit score and credit history greatly influence the approval of loans by your potential lenders.
Specifically, they analyze factors like:
- Your credit history includes the payments that you have made regularly or any delinquencies that you have made.
- New account opening and types of accounts.
- Total capacity/limit of credit and credit used
- Recent credit applications
- Cross-checks with public record databases such as bankruptcies and judgments
From the factors outlined above that determine your score, carriers assess the probability that you will settle for the monthly service on time. Customers with high credit ratings lowest risk levels to the carriers in terms of financial issues.
How to read your credit score
What affects cell plan approval odds is your credit score; therefore, it is advisable to check your score a few months before applying for a new service.
There are a few ways to check your credit score for free:
- Credit Karma and WalletHub are the two platforms that offer the service online.
- It is also a common practice to offer free access by credit card companies and banks.
- Users should visit AnnualCreditReport. com as they are entitled to a free report once a year.
As a result, the option to check credit score before applying will give the applicant an idea about his or her chances of approval and an opportunity to rectify credit if necessary.
The Strategies for Enhancing Credit Score
If your credit score falls below the minimum threshold for most cell phone carriers, take steps to improve it before you apply:
- Make all necessary payments on time or even earlier – credit behavior history is a critical determinant of the score.
- Make minimum payments more than 10% of credit limits
- Reduce further applications for credit cards – every knock on the score
- Settle all outstanding issues about the collection of payment for products and services.
- The information contained in your credit report is very sensitive and can greatly affect your financial status, thus, it is important to check your credit reports regularly and challenge any error found.
It is true that if you religiously practice good credit management for some months, your credit rating will improve and so will the chances of the cell phone companies okay your application.
A credit score is vital in determining the creditworthiness of an individual and most lenders have standard measures when it comes to defining what a low credit score is, but generally a low credit score ranges from 580 and below but what happens when your score falls below this range?
If your credit score remains too low for postpaid plans from major carriers, you have alternatives:
Prepaid Plans
Many wireless companies have no credit check and you only need to purchase a SIM card with the amount of money in which you wish to subscribe to the service. With a prepaid service, you have to pay for a service in advance and are given a certain amount of talk time, text messaging, and data usage for a month. The cons are sometimes you are denied certain privileges that come with postpaid offerings and if you exhaust your plan, data charges can be steep. But what makes prepaid plans attractive is the fact that you can get cell service without checking your credit.
Carrier Prepaid Brands
Verizon Prepaid AT&T Prepay T-Mobile Prepaid Sprint Prepaid
MVNOs
Some operators offer service by simply utilizing the infrastructure of other larger carriers through a concept known as Mobile virtual network operators (MVNOs). Several of the MVNOs in operation today such as Boost Mobile, Cricket Wireless, and Straight Talk do not pull credit checks. You just validate the credit policies of the MVNO you intend to sign with. Some of the drawbacks may be lower data speed than what the prominent carriers’ consumers enjoy.
Secured Credit Cards
They also need to apply for a secured credit card if they want to have one to have credit built up for them. These cards come with a refundable security deposit and serve as the limit of credit that you can avail. If managed properly secured cards prove your credibility and your payment history empowers your credit rating. You can then reapply after several months for a standard phone plan as they have conditions that must be met.
Adding an Authorized User
If your credit rating is just below what is required to be approved for phone service, you can get a friend with a better rating to be put as an authorized user for the wireless plan application. They are in a position to clear damaging notes on yours and meet the provider’s requirements.
Key Takeaways
To be more specific, although each wireless carrier has its credit requirements that set the credit score limits differently, most of the companies demand one to have a score of at least 600 to be eligible for the postpaid plans. It is recommended to have a check on your score before applying to ensure your chances of getting a loan or raising your credit score if it’s not good enough. If you use proper credit repayment habits or use credit checks that do not qualify as credit checks such as using prepaid services you can easily get approval for phone services even with poor credit ratings.
Call now for expert credit repair services: (888) 803-7889
Call now for expert credit repair services: (888) 803-7889
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