In today’s economy, having credit extended is more difficult than ever. When a company extends credit to its customers, it is crucial to the business to know how this customer handles their bills historically and to determine if this customer is low or high risk to their business.

Credit checks are used to assist the company in determining how their potential customer has handled their finances in the past. Most large companies have a credit department that will verify the information provided using your social security number, name, address, etc.

Things that will prevent you from getting credit include but are not limited to, poor payment history, accounts that have gone to collections, over extension of credit and inaccurate information including deliberate omissions on your credit application.

Why does credit matter if I only want a monthly plan?

When a customer signs up for cell phone service, the provider is giving that customer unlimited access to using their service. Customers can accrue extremely large bills in a very short period of time simply by using their phone for roaming, international calling, data transfers, downloaded ring tones, games, software applications, overuse of allotted minutes and excessive messaging if not covered in their plan.

All of these charges are paid by or absorbed by the carrier regardless if their customer pays their bill or not.

The potential for loss from a business standpoint is high and therefore credit will not be extended to those who do not meet the criteria set forth by the individual credit department.

Options for getting service with less than perfect credit:

Use a service that does not require a credit check. Wirelesswithout.com lets you use a plan with a major provider with a valid credit card.

Pay a pre-determined security deposit per line to the company of your choice. Most deposits range from $150.00 to $1,000.00 per line and generally will be refunded after one year only if the account is kept in good standing with no late payments or suspensions of service from non- payment. If your account is not in good credit standing, this deposit can be held as long as you have service with your company.

Consider using pre-paid cellular service. There are many options available for this type of service and since minutes are paid in advance, no credit check is necessary. Be sure and do your homework to find the one that best suits your individual needs.

Get a co-signer. Many companies will allow a co-signer to co-own your account with you using their credit for approval. There are some companies that do not allow co-signers but will put the account in another person’s name. You can be authorized to access and make changes to the account with the account holder’s permission. This avenue will in no way allow you as an authorized user to establish credit with that company or have your good payment history reported to the credit bureaus as the account itself is not in your name.