Prepaid cell phones are great in case that you have bad credit. Long time ago when prepaid service was first offered this used to be its main advantage for the user. It did not matter if your credit was lousy, you could still get a cell phone and use it just like if you had a perfect credit.
Cell phones are so common these days it is really difficult to find someone who does not have one. Even if you do, it is in most cases by personal choice (your author was one of these, for the longest time I refused to get it, butt becoming a father changed my mind).
All of us need to be able to communicate with a person we care for and that is the main benefit of cell phones. That is why prepaid service is great, you can get it any time you want and nobody will check your credit history for it.
So what are the main differences (concerning credit checks) between prepaid and non-prepaid service?
Prepaid
With prepaid service you simply buy a cell phone, number and minutes you intend to spend talking and there is no need to worry about how it will impact your credit score. Or for that mater, whether you are going to get a cell phone in the first place.
Prepaid service providers just do not care about your credit rating because in order to use the service it has to be paid for in advance. Because it is paid in advance you pose no risk for the company that provides the service. The good thing about it is that you are %100 in control of your budget and it will not show on your credit report no matter what you do.
But remember, prepaid service is not just for people with bad credit, it is far easier to control your spending this way and you do not lose any of the cell phone service benefits. It is especially suitable for people who do not use cell phones a lot. You do not have the pay monthly bills but are still connected if you need it.
Non-prepaid
Regular, non prepaid service will check your credit score before you are approved. Credit bureaus are constantly informed by
creditors about your payment history, including the cell phones companies. So remember that an unpaid cell phone bill can
result in you being turned down for some other more important credit demand like home or a new car.
With prepaid cell phone service it is never going to happen, because you are %100in control of your budget at any time. It will enable you to easily avoid any trap caused by over spending.
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