How to Get a Cell Phone Contract With Bad Credit
These days it's almost impossible to stay in touch without a cell phone. But what happens if you've made a mistake or two in the credit department, but still need a cell phone? While there are month-to-month and pay-as-you-go plans, they can be expensive and may not offer the coverage of a traditional cell phone plan.
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Instructions
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Rate the cell phone providers you would most like to receive service from on a scale between "first choice" and "last resort" and review all the service plans they offer. Be realistic about what you can comfortably afford and what services you can live without instead of going for a plan with all the bells and whistles.
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Know your own credit score. Obtain a copy of your credit report so you have the information providers will want to know before they run a credit check of their own. Knowing where you stand is the best way to negotiate a contract when you have bad credit.
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Talk to customer service representatives in the credit departments of the cell phone providers on your list before applying for any service contracts. Explain your situation and find out if they have an option for people with bad credit or if the provider participates in a credit rebuilding program. Many providers offer a limited plan with a security deposit.
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Make your decision based on all the information you have gathered and apply for a contract with the provider that will offer you a contract within your budget and reports positive information to the credit bureaus in a timely manner.
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Tips & Warnings
Make your payments on time directly to the provider to improve your rating with that provider. If a security deposit was required, your payment history will determine whether or not the provider will continue your contract without a deposit at the end of a set period of time. If you have not defaulted on your agreement, your security deposit is usually returned or applied to your bill.
Be careful of applying to multiple providers as every inquiry (and turn down) is added to your credit history and too many inquiries could be damaging to your rating.
You have the right to a free copy of your credit report from the three credit reporting bureaus annually.
Beware of any credit repair scams and report an unfair lending practices to the Federal Trade Commission.
