You must be paying a number of bills at the end of every month. Even though some of the bill payments are able to help your credit scores, mobile phone bill payments do not help your credit score in any way even when you are paying up the bill on time every month. We know that mobile phone providers actually are not in the habit of reporting regular bill payments straightaway to the credit bureau.
However, they would be examining your credit score for deciding whether to give you approval for your phone contract or maybe an installment plan approval for getting a new mobile phone. This clearly implies that irrespective of the number of times you actually make your mobile phone payments promptly on time, they would never have a positive impact on your overall credit score as the payments are never reported officially to the credit bureau.
When you are thinking of getting a new mobile phone, the cell phone providers would be examining your credit score if you are thinking in terms of financing your new cell phone. Several cell phone carriers would now be requiring you to lease or buy a new cell phone. Whatever the way, you would be having an installment plan for your brand new mobile phone having small monthly payments that are included with the monthly service fee.
Once you are thinking of getting a brand new phone, a credit check would surely be performed by the carrier to make sure that you are qualified for financing and to determine the precise terms you could actually avail. Moreover, even though you seem to be taking a loan for paying for your new mobile phone, the payments would not be reported by the carrier to the credit bureau so your credit score would not be impacted at all.
Late Payments & New Mobile Phone Applications Could Damage Your Credit Score
Each time an inquiry is made regarding your credit history when you are financing a mobile phone or establishing a brand new service, you could adversely impact your credit score even though the mobile phone payments do not.
Credit inquiries are supposed to be just 10% of your overall credit score and they only leave an impact on your credit score only for one year or 12 months. After two years or 24 months, inquiries would vanish from your credit report completely. In this connection, we understand that even though timely mobile phone payments cannot help boost your credit score, any late payments of cell phone bills could be adversely impacting your credit score. However, just one or a couple of late payments may not typically hurt your score provided you pay up all your past outstanding amounts before the termination of your contract and before your previous carrier turns your mobile phone account straightaway to collections.
Remember if you decide to stop making your mobile phone payments and subsequently you close your account, the carrier may consider sending your account for payment straightaway to any collection agency. This sort of collection would surely be listed or entered in your credit profile and may severely hurt your overall credit score. Your credit score could also, be damaged if you terminate your mobile phone contract prematurely or if you end up disconnecting your mobile phone services without totally paying your early termination fee or without paying the remaining balance on your phone.
Once a delinquent mobile phone balance is actually on your credit profile, you must realize that the entry would be present in your credit report for the next 7 years. Your credit score would be impacted drastically during the initial few years post-delinquency is incorporated into your credit report. However, your credit score could be rebounding with time once you start making all your credit-related payments promptly and timely and stay clear of any future collections.
You may, however, note that timely mobile phone payments do not impact your credit score but making timely and prompt credit card payments could boost your credit score. If you are having an open card, you could use that credit card for making your mobile phone payments and then you could pay up your credit card dues. Timely and prompt credit card payments would go a long way in boosting your credit score.
Dealing with Mobile Phone Debt
Try Getting Free Debt Advice
As per nationaldebtline “Get free debt advice. The first step in dealing with mobile phone debt is to get some free debt advice. Our debt advisers can help you work out a payment plan for your mobile phone debt. They can advise you on the best way to negotiate repayment with your mobile provider.” Browse through debt settlement reviews online for free debt advice from experts.
Complete Your Personal Budget
You must complete a personal budget as that would be helpful in determining if you could afford to actually, maintain your mobile phone payments. You may accordingly offer to make the payments towards all the existing arrears.
Get In Touch With Your Mobile Provider
You must get in touch with your mobile phone service provider if you fail to pay your pending mobile bill. Chalk out a budget and accordingly ask your provider if they could allow you to make the payment in installments. There is every chance that your cell phone company would be agreeing to your proposal of an effective monthly payment plan provided they are contacted at the earliest. If you do not wish your mobile connection to be disconnected, you must treat your mobile phone outstanding bill as a top priority debt. Do not forget that your cell phone provider may turn your mobile phone account on to any debt collection agency.
Examine If You Could Afford the Tariff
A tariff is actually a contract which would be offering you a host of services that come to you for some fixed price. Your cell phone provider may be agreeing to reduce substantially your tariff.
Pay Whatever Is Affordable to You
You must ensure that you are offering only what you could afford realistically. If you are offering something more than what you could actually afford, you are taking the risk of actually missing a payment. This could imply that your mobile phone would be disconnected and your mobile service contract canceled.
You must try and stay on top of your mobile phone bills every month. You must avoid late payments or missed payments that may end up hurting your credit score. Remember small modifications to your insurance package, payment method, and service address could be resulting in substantial savings on your mobile phone bill.