How To Build Credit With Your Cell Phone | KOHO (2024)

FAQs

How To Build Credit With Your Cell Phone | KOHO? ›

Will paying my phone bill build credit? Yes, if your phone carrier reports to a credit bureau, your payment history can help build your credit. Since your monthly bill is often reported on your credit report, similar to financing a phone, making on-time monthly payments will also help grow your score.

Major phone manufacturers, like Apple or Samsung, offer financing options. Financing through a phone manufacturer often works similarly to a credit card, meaning they'll open a line of credit for you that is reported to the credit bureaus. As long as you make your payments on time, you'll build credit.

Paying your cell phone bill likely won't help you build credit. However, there are steps you can take if you'd like your phone bills to affect your credit score. This includes using your credit card to cover your phone bill, and then making on-time payments on your balance.

‍Your mobile phone contract is a type of borrowing, so monthly payments show up on your credit report. That means if you pay on time you can dial up your credit score. But of course there's a flip side! If you're late paying your contract or you miss payments, your credit score could drop.

One of the fastest ways to build credit is to get added as an authorized user to someone else's credit card, as long as they're a responsible credit card user. At the same time, focus on making on-time payments for all your accounts and reducing your credit utilization by paying down your debts as much as possible.

Payments for mortgage, credit card and installment loan bills could also help build credit, if they're made on time and reported to the credit bureaus.

Is there a minimum credit score needed to purchase a cell phone? While there is no minimum credit score that will ensure a cell phone contract approval, providers may use your score to assess creditworthiness. A higher score may help you secure more preferable options.

Paying all of your bills consistently is key to a good credit score. While paying your cellphone bill won't have any automatic impact on your credit score, missing payments or making late payments can cause your credit score to drop if your cellphone account becomes delinquent.

If your credit score is between 725 to 759 it's likely to be considered very good. A credit score of 760 and above is generally considered to be an excellent credit score. The credit score range is anywhere between 300 to 900. The higher your score, the better your credit rating.

What is the easiest cell phone company to get approved? ›

Getting Approved with Bad Credit

Popular prepaid carriers include Cricket Wireless, Boost Mobile, Metro by T-Mobile, and prepaid plans from major carriers like Verizon, AT&T, and T-Mobile. Pay-as-You-Go Plans: Similar to prepaid plans, you pay for what you use.

There's no minimum credit score required for a mobile phone contract and each provider has its own criteria, so even with a lower score, you may still qualify depending on other factors. A phone contract is a type of credit, just like a personal loan, credit card or mortgage.

The easiest phone companies to be approved for are those not requiring credit checks, as you'll automatically qualify – as long as you can afford the deal. These are mostly the lower-cost networks that offer SIM-only deals like giffgaff, SMARTY, Asda Mobile, Lycamobile and Lebara.

It's possible to rebuild credit with responsible use, like paying bills on time, managing your credit utilization and only applying for credit you need. Becoming an authorized user or getting a secured card could help show your ability to repay debt.

For example, Sprint considers a credit score of 700 and above as “excellent” and anything below 550 as “fair.” AT&T may require a deposit for credit scores below 600. Options for getting a phone line with bad credit include prepaid plans, buy now pay later plans, joining a family plan, or using a cosigner.

Ways to improve your credit score

Paying your loans on time. Not getting too close to your credit limit. Having a long credit history. Making sure your credit report doesn't have errors.

Information about your purchase, like the loan start date, loan amount, loan status, outstanding balance, payment dates, and payment history will be shared, which will help to build your credit history. If your purchase is canceled or fully refunded, the loan will be removed from your credit file.