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Do You Really Need A Credit Score for Cell Phone Plans?

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As of February 2021, 97% of the US population have a cell phone and 85% of people own smartphones. It’s become a necessity to operate in today’s world; it’s your GPS, your line of communication, your game time, and can even be a way to earn money. 

While you don’t necessarily need to have good credit to get a phone plan, it definitely helps. If you have poor credit, you might choose options like a prepaid phone, month to month plan, or work with a cosigner to help you qualify for a phone plan. 

You don’t have to let a bad credit score stop you. 

Do You Need a Credit Score To Get a Cell Phone?

Smartphones have become so expensive that it’s almost impossible to get one without signing an annual phone contract and running your credit. That makes it more difficult for people with poor credit to get a new phone plan. Don’t worry, you have options.

It can take months to build your credit and you likely needed a phone yesterday. I’ll let you in on a secret. You don’t need a credit score to get a cell phone. But it’s a lot easier to get approved when you have a good credit score. 

There are other phone plan options that don’t require a credit check. A prepaid plan might work as long as you’re good with a hefty security deposit to start. You might even be asked to pay for your phone outright. This can get expensive fast. 

You could ask someone you trust to co-sign for you. If they agree to help you out, be sure to make all of your payments on time. Co-signing makes them responsible for your cell phone bill if you become delinquent. It would also mess up their credit. 

You could also do a month-to-month contract. Depending on which company you go with, they might not run your credit because it doesn’t have the same two or three-year contract obligation you’d find with a typical phone plan. With this, you’re locked into a rate. 

What Is a Good Credit Score For a Cell Phone?

There’s no set minimum credit scoring model that all cell phone companies go by. Each one has its own credit standards that determine what consumers pay for their services. As a general rule, the better your credit score is, the better chance you’ll have of getting what you want. 

For the best cell phone plans and deals, you’ll want to have a score of 700 or more. Anything above 750 is considered excellent credit. You’re still in the clear if you have a credit rating of at least 600 though. This will qualify you for most cell phone plans. 

You might encounter situations where the negative factors on your credit report impact your ability to qualify for a mobile phone contract. Habits that denote bad credit signal to lenders that they might not get their money back if they lend to you. 

It might be surprising to know that even though you need your credit score to get a cell phone, the monthly payments don’t help you build credit. Unless you become delinquent on your monthly payments, the cell phone company isn’t reporting your payments to the credit bureaus. 

Services like Experian Boost allow your cell phone payments and other alternative data to contribute to your score. Without that, your cell phone bill only affects your credit when you’re severely behind on payments. That’s when your creditor reports you to the credit bureaus. 

How Hard Is It to Get a Cell Phone With Bad Credit?

A cell phone with bad credit is a big investment. It often comes with heavy upfront costs and security deposits. Since mobile phone companies want to make their money, it’s more challenging to find one that’s willing to take the risk. But that doesn’t mean they aren’t out there. 

If you have poor credit history and need a cell phone plan, there are prepaid plans that don’t require any contracts or credit checks. This is your best option if you want a cell phone minus the strings. A prepaid service plan means no hassle. 

You pay for what you use, and you don’t have to worry about being stuck in a contract for two years or paying extra to switch providers. A prepaid cell phone still has features like unlimited talk and text, access to customer service, data, and international travel. 

If bad credit is stopping you from getting a cell phone plan then you should take steps to rebuild credit. Earn a good credit score by keeping your bill payments on time, and lowering credit utilization on your current credit cards.

A secured credit card or credit builder loan could also help build a solid credit history before you consider which new mobile phone contract to go with. 

Do Mobile Carriers Make Hard or Soft Pulls?

Most mobile carriers run hard inquiries to qualify you for their phone plans. This hard inquiry stays on your credit report for two years whether you get approved for the phone or not. It also has a minimal effect on your credit score. Typically, it’s a decrease of one to five points.

If you choose to go with a prepaid or monthly billing plan, the cell phone company won’t be concerned about your credit score. 

Since you’re paying for the service in advance, there’s no need to send you to collections for nonpayment. They just stop your service when the payments stop.

When a mobile carrier runs your credit report, they consider the negative factors on your credit history, not just your credit scores. Negative items like late payments, derogatory payment history, credit accounts in collections, and bankruptcies impact their decision-making. 

If you have multiple negative items on your credit, the cell phone company may require you to put down a large security deposit, pay for the phone outright, require a co-signer, or decline you altogether. 

What if I Don’t Have a Credit Score?

If you need a phone plan but don’t have a credit score yet, you have a few options. These alternatives don’t require a credit inquiry for you to get a new phone line. Many times these are more cost-effective:

  • Get added to a family plan 
  • Month to month billing
  • Prepaid service plans
  • Get a co-signer

The downside is that most of these options won’t get you access to the latest smartphones. But you could always try to build your credit instead so you qualify on the strength of your own credit scores. CreditStrong helps people without a credit score build their credit within a few months. 

Our top-rated credit builder loan won’t do a hard credit check to qualify you. Each time you make a monthly payment on your credit builder loan, it’s reported to all three credit bureaus. You also get a free monthly FICO 8 score to help you keep track of your credit.  

Within a few minutes, you can start building your credit with affordable monthly payments that build a secured savings account. Once you’re done making payments to your loan, the funds in your savings account are released. With on-time payments, you’ll see your score increase!

Start building credit with no risk and no credit check. Take a look at credit builder loan pricing here.

All in all, getting a phone plan with bad credit is challenging. There are ways around the difficulties, but it might not allow for the most recent smartphones. 

Fixing your credit with better financial habits, secured credit cards, and a credit builder loan help you get the phone plan you really want.

If you’re pressed for time and need a phone immediately, you could always get a co-signer, go for a prepaid plan, try a month-to-month option, or have someone add you to their family plan.

CreditStrong helps improve your credit and can positively impact the factors that determine 90% of your FICO score.

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