One More Reason for a Good Credit Score– Cellphones

Did you know that cellphones are one more reason for a good credit score? If you have a good credit score you not only get benefits like a car loan or mortgage but you also get to bag cellphone services for cheap. If you maintain a good credit score, your cellphone service providers will be only too happy to extend to you the monthly airtime facilities. If you want to get some real good perks see to it that you maintain a good credit score.

A bad credit score will only make the cellphone companies do some tough pedaling with you. For example, they are going to hike your monthly fee or ask you make some security deposit. If your score is very unimpressive they might even refuse to offer you any services at all. I wonder how AT&T users are paying up a security fee of $800 as a penalty for bad credit score. Well, it is pretty understandable. Your credit score reveals your credibility and if it’s not good, people will not trust you because of which they’ll obviously ask for a higher security fee.

Good credit might be required for cellphone perks, but a cellphone can be the very reason for you to have bad credit score. When a service provider enquires about your credit score, it will lower your credit score a bit. The more the number of service providers you are attached with the more the inquiries and the lower your credit score will be.

When you evade your cellphone bills, you might think the worst that might happen to you is that your cellphone will get switched off. But these days, cellphone providers do much more than that to appease their anger against you. Along with severing your connections, they are going to report about your non-payment to credit bureaus. Also they might hand over your case to a collections agency which is going to hound you like wild dogs for your dues. Your bad credit score is going to remain on your reports for about 7 years no matter whatever your payment pattern later on. So before you stop paying your bills, just give this a thought. Also ask your cellphone provider to tell you about their credit bureau reporting policy so that you are well aware of their course of action in case you default in payment.

If you are already having a bad credit score and yet in need of a cellphone, you are left with no option but to opt for the more expensive schemes as they don’t really need any credit check. You can always work upon your credit score later to improve it and then opt for the more affordable wireless service schemes. Try to maintain a good payment record with the service provider and you’ll be considered for some good schemes from them. Pay up your dues in time.

Though cellphone service providers might seem to be taking a tough stand on their customers, the rules seem quite fair for me. After all one cannot really move forward in the commercial world without a good credit score.