Do you need credit to get a phone plan?
Quick insights
- Standard phone plans typically require a hard credit check to assess your payment risk.
- Prepaid plans usually skip credit checks because you pay for the service upfront.
- Based on your credit profile, among other factors, you might need to pay a security deposit or explore alternative options.
Getting a new cell phone can be exciting, but before you dial in on your choice of phone plan, you might be wondering if you need to meet a credit score requirement to qualify. Since requirements vary by carrier and the type of service you choose, let's explore how your credit history might affect your mobile options.
Do you need credit to get a phone plan?
Whether you need to prove creditworthiness for a phone plan largely depends on the type of service you want. Mobile carriers generally offer two main types of plans, and they handle credit differently.
- Standard monthly plans: You pay for your service at the end of the billing cycle. Because the carrier is essentially lending you a service or a new device upfront, applicants are generally subject to a credit review.
- Prepaid plans: You pay for your service in advance. Since there isn't any borrowing involved, carriers typically don't require a credit check for these plans.
Do phone companies run credit checks?
For standard, postpaid plans, phone companies typically run a hard credit check. A hard credit check happens when a lender reviews your credit report to make a lending decision, and may temporarily affect your credit score.
When you apply for a standard plan, carriers usually review your credit report, which is compiled by credit bureaus such as Experian™, Equifax® and TransUnion®. That way they can look at your credit history. Additionally, carriers may also check specialized industry reports to review your payment history with mobile carriers. This helps them determine your eligibility to be approved for certain plans and device financing options.
What credit score do you need for a phone plan?
There isn't a single credit score required for a phone plan, as each carrier sets its own policies. A credit score is a number that helps assess your creditworthiness and is one of several factors lenders, or carriers in this case, may consider when making a lending decision.
Lower scores are viewed as a higher risk. This could result in carriers asking you to pay a security deposit or being limited to certain plans.
You may want to check your credit score before signing up for a phone plan. Your bank or credit union may offer free tools to assist you with monitoring your score.
For example, Chase Credit Journey® is a free online tool for anyone 18 or older with a valid U.S. address and Social Security number (SSN), offering access to your credit score and personalized score improvement plan provided by Experian—no Chase account required.
Possible options if your credit score is in a lower tier
If you're working to help build or help rebuild your credit, you may still have ways to get connected. Here are a few alternatives you might consider:
- Prepaid plans: Since you pay in advance, these plans skip the credit check entirely and may be a straightforward way to get mobile service.
- Bring your own device: If you already own a phone, you might be able to get a plan without financing a new device. Carriers may be more flexible when you aren't borrowing money for hardware.
- Security deposits: Some carriers may approve you for a standard plan if you provide a security deposit upfront. This deposit can help reduce their risk in case of missed payments.
In summary
Credit requirements don’t necessarily have to put your mobile upgrade on hold. Whether you opt for a standard contract or a prepaid alternative, understanding how your credit history impacts your choices may be a helpful first step.
