Getting a cell phone often becomes difficult for people who have a history of a bed credit. Few service providers need a huge amount of deposit and sometimes they don’t pay this amount back to the person availing the service. Credit rating of a person is something that determines the person’s capacity to pay the money charged by the service provider every month. It affects the person when he is applying for a cell phone.
Prepaid plan and billing plan are the two plans which most of the service providers offer a cell phone user. The prepaid plan is a plan in which the user pays the amount before he uses it for calls. Consider this like a debit card of your bank account. It is something similar. Billing plan is a cell phone plan where the user first makes the calls and then pays the amount due to the firm, at the month end – more like a credit card.
A lot people are unable to pay amounts which they owe other organizations or people. They are known to have bad credit against them. Such users are not trusted by the cell phone service provider as others. But there are firms which provide their cell phone services to those with bad credit as well, although certain things in their plans are different. The first is the deposit which tends to be higher depending on how low the credit rating is. But it helps as they can get a cell phone plan after all. This tends to be the case with billing plans as opposed to prepaid plans which anyone, even those with poor credit, can pay for beforehand.
Almost all the companies prefer customers with a high credit rating but there are companies who cater for bad credit rating also. These companies ask the person to pay a lump sum initially and this amount is directly proportional to his credit rating. If it is low, the amount will be high, ranging from $200 to $400.
This caters to the need of a lot of customers with low credit rating. For some the initial amount may seem high. For them there are other firms who don’t demand a down payment or a deposit amount. However, they are strict if you fail to pay a month’s bill on time. They charge higher fees and penalties. For a lot of people with low credit score, one of the above options seems to work.
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