I had a cell phone which I defaulted the contract on. Is it necessary to get that balance paid off before I can get a cell phone with another company, and if so how will this affect my credit rating with the new carrier? The way companies are handing out cell phones left and right I’m hoping it may be as simple as putting up another deposit. Which companies are easiest to get along with in this matter?
I work for a cell phone company and used to screen people in your shoes.
A deposit will probably be required as well as payment in full of any amount you might owe to the company you’re applying service for. The deposit is based on your Equifax score and the amount of collections against you from other carriers.
For instance, if you owe a competitor $500 as well as have a score that would require a $500 security deposit, we would ask for $1000.
Keep in mind this is my company’s policy.
The more collections you have against you from other carriers, the more deposit you can expect to pay.
If the deposit is rather steep, you can always take a pre-paid “pay as you go” type of service regardless of your credit score.
BTW, your cell phone, if you owe money on it, will be black listed by the original company. I’m not sure about American cell phones but we can black list any phone reported stolen, fraudulant and/or having a large balance owing.