How to Get a Cell Phone with No Credit

No Credit Check Cell Phones

Opening a cell phone account is a great way to begin establishing credit. Knowing the right places to go and the right accounts to open will help you avoid being rejected. Though any of the larger cell phone service carriers require a credit check, many companies offer a variety of cell phone options with no credit history.

Free Cell Phones

Many free cell phones with no credit checks are available through a variety of carriers. You need to shop around and do your homework. The best place to start is online. Cellular companies are becoming more and more competitive and free cell phone offers are easy to find. Online shopping enables you to sift through a variety of carriers and plans. Most companies offer a certain model for free if you use their services.

The only down side to a free cell phone is that you normally don’t have many options when choosing a phone. You may not have a ton of features either. But, having the phone service will help you establish credit and have access to a phone where ever you are.

Pre-Paid Cell Phone Plans

A Pre-paid or pay-as-you-go cell phone plan is a great option for someone with no credit or bad credit. Pre-paid phones offer a basic services, no frills cellular service. Though you don’t get all the upgrades and apps, many phones offer texting and picture ability. A great perk is no obligation to a two-year contract as will most plans. You also don’t rack up overage charges.

Essentially, you pay for a certain amount of minutes each month. Once you go over those minutes, your phone service disconnects until you buy more minutes. You can purchase more minutes immediately or in a certain time limit.

Many companies offer pre-paid phones. You can find them at the major phone carriers, electronic stores, and even online.

Co-Signer

Many people with no credit often have a co-signer for loans. This means that someone with a good credit history also signs your credit application vouching for your loan. Thus, this person accepts the responsibility for your credit line along with you.

The last thing you want to do is neglect to pay your cell phone services because it will affect your co-signers credit history. A well-established trusting relationship is involved with a co-signed loan.

Deposit

Many cell phone carriers are willing to open accounts for those with no credit for a deposit. This means you put down a certain amount of money to open the account. Upon closing the account, you are given your deposit back. However, if you fail to pay your monthly bill, the account will be closed and your deposit will not be returned. They cell phone company uses the deposit to pay-off your unpaid bill.

Be very wise when making the choice to put down a deposit. Some cell phone companies can charge up to $1,000 for a deposit. Shop around and find the best deal before you decide to put down a large sum of money. Also, think about the phone model you select. A phone that is less expensive and offers less features will require a smaller deposit.

Other Options

If you are still undecided on how to get a cell phone with no credit, consider establishing a history on your credit report. If you pay rent, have your leasing agent report your on-time payments to the credit bureau. You can also add utility bills, electric bills,and land line phone bills to your credit report. Make sure their are no flaws in your payment history. After all, you are trying to build a positive credit history.

You can also shop around online. If you have been turned down by major carriers or find their offers are unreasonable, turn to online stores. Many online stores offer great deals for those with no credit or bad credit. A quick internet search will pull up hundreds of options.

Considerations

Having cell phone service will greatly benefit your personal life and your credit. Opening a cell phone account and paying your monthly bill on time shows lenders that you are a responsible consumer. The longer you have your service, the greater chance you have of opening other credit lines in the future. Think of each credit account as a building block to establish a good credit standing.

Remember to always pay your cell phone bill on time and never go over your minutes. The more control you have over your cell phone account, the greater your credit history is. By budgeting wisely and using your cell phone minutes correctly, you are well on your way to becoming a borrower creditors want to lend money to. Having a cell phone account can also help you rent an apartment, and establish other bills without large deposits such as utilities and electric.

Visit the following link for more tips related to no credit check phones.