Does using a prepaid cell phone as my only phone hurt my ability to get credit?

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shoptalk01
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Does using a prepaid cell phone as my only phone hurt my ability to get credit?

Postby shoptalk01 » Sat Oct 06, 2012 9:48 am

Question: If I opt for a prepaid cellular device instead of a landline, would that effect my ability to get credit in any way? Does having prepaid make a huge difference over a regular cellular plan since there's no bill coming to this address? I know Amex couldn't even send a prepaid card to my new address because they said they couldn't verify it as my address but they had no problem sending it to my name at my Mom's address even though I don't live there.

One advantage since I'm renting without a long term lease, I end up moving around and would easily be able to keep taking my same number with me from location to location. The only problem being I would be getting a new random number assigned by the prepaid carrier, but this is one sweet deal with unlimited nationwide local calling.

I currently have 2 secured cards with Capital One and US Bank and I don't want to keep secured cards forever. I'd like to think that I can qualify for something unsecured in a year or so and I need to know if not having a landline could totally screw up my hopes of getting unsecured cards.


namvet
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Postby namvet » Sat Oct 06, 2012 10:13 am

IME having a prepaid cell phone will not hurt your chances in being approved for credit. Many people have went the prepaid route for many reasons. Go back 10 years or so and my answer would have been different.

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Snowman
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Postby Snowman » Sat Oct 06, 2012 10:28 am

Shop- I had a prepaid phone through a company called Straight Talk, and every month I would have to pay 30.00. A few months I went and bought a IPhone, usually they ask you for a deposit (I have AT&T), but I was one of the fortunate ones that did not have to put down a deposit. Basically just don't miss any payments with them and they won't report you and you'll be okay. Just pay on time every month and you'll be okay. And unless it is derogatorily reported to the bureaus it won't hurt or help getting you credit.
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trumpet-205
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Postby trumpet-205 » Sat Oct 06, 2012 10:30 am

Answer to your question is no. Regular monthly service plan does not report to your credit report unless you fall behind on your monthly payment. Hence regular monthly service plan does NOT help you to build credit.

If you want prepaid plan check out Straight Talk. For $45 per month you get unlimited voice, text, and data plan. Doesn't get any better than that.
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shoptalk01
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Postby shoptalk01 » Sat Oct 06, 2012 11:12 am

I didn't want this to sound like an advertisement, but I'm getting a Straight Talk Home Phone Connect. Just plug in a handset and add a $15 card every 30 days. No more long distance bills. I already have a Samsung Proclaim, had it for about 6 months, but I've had the same cell number since 1994 and just ported over from Verizon about a year ago. I've just been worried that dropping the landline, when I fill out a credit application it will tell me my phone number doesn't match my address. A good reason to use prepaid, they can never turn you into collections for not paying.

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Snowman
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Postby Snowman » Sat Oct 06, 2012 10:21 pm

In addition to what trumpet posted, i had the 30 dollar plan with 1000 minutes and 1000 texts. Worked well for me and I had the plan for 2-2.5 years.
Bank Of America: BankAmeriCard Cash Rewards-4.2k
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Chase: Freedom-5kSouthwest Rapid Rewards Plus- 3.6k
Capital one: Venture one-10,000, Visa Signature.



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