Not so long ago, cell phones symbolized luxury. High powered business executives would have to part away with thousands of dollars just to walk around town with a brick-like gadget that was a little more effective than two metal tin cans tied to a cotton string. Things have since changed. Today, a cell phone is considered a necessity. So much that you may have a hard time sending or receiving money without a cell phone. You can, therefore, imagine how devastating it is for you to lose a phone in the middle of the month while trying to get along on a budget. How do you go about financing a new one with a bad credit score that is nothing but poor? Consider a paycheck advance loan.
Credit Scores and Cell Phones – How Exactly Are They Related?
With a provider willing to overlook your bad or low credit score, you only need to worry about how you can finance your new phone. This shouldn’t be a problem given that there are so many lenders offering a paycheck advance loan for borrowers with bad credit. How many providers first perform a credit check before giving you a cell phone contract? Probably 4 out of 5. It makes sense because providers must consider whether a prospective customer has been managing credit and paying debts on time. In other words, if an applicant has been paying bills on time, then the odds are higher that he also pays his phone bills on time. On the other hand, if you have a history of defaulting or settling your bills late, a provider will most likely think you won’t handle or treat their invoices with the urgency they deserve. The provider may then proceed to offer you a staggering rate if, at all, it is willing to off you a contract.
Remember that low credit scores do not necessarily mean that you are irresponsible. Unfortunately, service providers like to treat the exception as the norm. Thankfully, there are several providers who may choose to overlook your score if you can explain to them why your scores are the way they are. This is not new. In 2015, T-Mobile surprised many when they opted to stop checking their customers’ credit scores before renewing their phone contracts. They instead, chose to base contract renewals on a customers’ bill payment history in the previous year.
Credit Checks And Your Credit Score
There is a high likelihood that your phone carrier will opt for a hard credit check before offering you a deal. This means temporary damage to your credit score. It’d be nice if you are given a soft credit check, as this will have no impact on your credit score. Unfortunately, you cannot choose. Your provider gets to decide the type of credit check they will run on you.
Improving your overall credit score is easier said than done. Pay your bills on time, pay off your debts and use credit cards responsibly. That’s the cliché advice borrowers are used to. But it takes time to build up a decent score, and you can’t go long without a cell phone. So what are your options?
Apply For A Cash Advance
You didn’t plan on it. It just happened. You were rushing to class or work, and your phone fell, or you lost it and can’t trace it. Your paycheck is weeks away. You had applied for several jobs and the thought of a potential employer calling you only to find out unavailable is sickening. Consider paycheck advance loans. It doesn’t matter how bad your score is. As long as you’re doing something about your debt, working it out one at a time, you will eventually get off the rat race. In the meantime, focus on what is essential – get the phone and stay connected.
Consider a Cosigner
If the cost of a prepaid phone or plan does not work for you, consider reaching out to your friends or family. There’s always someone close willing to help. As long as they trust you, have a good credit score and are willing to cosign your account, consider it an option. Remember it is temporary until your back on your feet. You may also want to consider joining into a relative or a friend’s family plan and paying them every month or as necessary.
Shop Around
This is important. Remember what you did when you were looking for a paycheck advance loan? You shopped around for decent lenders. Do the same thing when looking for a cell phone service provider. Companies like Boost Mobile and Metro PCS specialize in offering phones to lower-income customers. Explore different providers as well as payment options to identify which plan is ideal for you. Remember, you’re trying to save each penny. This may mean going for the cheapest plan in the market. Remember too that, this is for a while. Before long, you’ll be out of the murky waters.
