There are a lot of companies claiming to have no credit check cell phone plans but does it really help you if you’re looking for a cell phone with bad credit? The answer in most cases is NO, flat out.
You usually ended up purchasing overpriced minutes and you have to prepay your bill or put down some outrageouly expensive deposit. It usually ranges from $300-$500 for a deposit depending on the plan and how many phones will be covered under the contract. In today’s declining economy it’s becoming more and more difficult for people to get a cell phone with bad credit. As if the cell phone companies don’t already make enough money!
The following SIX tips will help you to make sure you don’t get scammed or ripped off if you’re looking for a cell phone with bad credit
#1 – If you have to put down a deposit of any sort you’re paying too much. You should only be required to purchase a phone, most likely at retail value and still be given a contract. You should never be required to put down a deposit and should never be forced to prepay your bill. Unless you’re completely happy and so loyal to your current provider that you don’t have a problem forking over the money in advance.
#2 – If you’re considering pre-paid cell phones or pay as you go wireless plans be sure you compare the per minute rate to a standard contract. For instance, if you were to pay $59.99 for 900 minutes on a standard contract and you’re paying $.10 cents per minute for your “pay as you go” or prepaid cell phone you would be over paying for your minutes by about $30. (900 X 10cents/min = 9000 cents or $90 for your prepaid cell phone – $60 for your standard contract bad credit cell phone = $30).
This tip is critically important so you don’t get ripped off and pay for overpriced minutes.
#3 – Compare the cost of the hardware between a prepaid cell phone and one that offers a contract. Typically you will find that “pay as you go” cell phone providers charge a larger premium than those that offer a contract. Even at full retail value a bad credit cell phone provider who offers a normal standard contract will almost always be cheaper than a prepaid cell phone or pay as you go phone.
#4 – Look at the coverage area of your provider. Bad credit cell phone providers typically don’t have a good coverage area and if you travel you’ll be forced to pay outrageouly high roaming fees. If you’re on a prepaid plan you’re more than likely already overpaying for your minutes, imagine what roaming fees will do to your minutes so be very careful here. Be sure you clearly understand the coverage area and roaming fees if any.
#5 – Find out if your provider reports to the consumer credit agencies. If you keep your account in good standing your provider should report this to the credit agencies to help improve your overall credit score. This is a good thing and can help you out significantly in the long term if you can show that you’ve made an honest effort and consistent payments.
#6 Does your provider offer a rebate of some sort if you keep your account in good standing? If you have bad credit and have to buy a cell phone at retail value or put down a deposit your provider should give you some sort of incentive to keep your account in good standing with them. Ask about a rebate for the cost of your phone or how long it will take to get your deposit back. Anything past 12 months is way too long.
Following the above steps will help you save thousands of dollars when you are selecting a cell phone for bad credit and will improve your overall credit score. Don’t let today’s down economy keep you from communicating with your friends and family. You deserve more than that!
For more information about how you can obtain a cell phone with bad credit visit: http://www.bad-credit-cell-phones.net
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