Credit checks are becoming a bit too pervasive, I think

[Anonymous]

So, in preparation for a move (assuming all goes well at closing), I have been researching alternative entertainment companies (saying goodbye to Comcast ).  I was all set to order service from DirecTv, and then came across a request for my SSN to check my credit - this is required to be eligible for their special offers.

Since when are discounts or special offers contingent on someone's credit?

I'm certainly not concerned that I wouldn't qualify, but it is the principle of the thing that bugs me.  It's like being considered  a financial deadbeat before even giving me a chance to be a good customer.  That, and I don't want another hard inquiry on my account before closing (the mortgage inquiry will report this week since closing was scheduled for 45 days after the offer.)

This is just another card to add to the pile of evidence that one really has to keep excellent credit.  Jobs, phone service, TV service, it all requires credit checks now.  Sooner or later, you'll have to get your credit checked before you get a check up at the doctor's office - I swear, we're not far from that point.

[trumpet-205]

It has been done a long time ago. Utility, entertainment, and other monthly service provider WILL check your credit reports to make sure you'll not miss a bill. If you have excellent credit then they'll offer discount. But if you have less desirable credit they'll require depoit upfront.

[Imhotrodcrazy]

Welcome to the Big Brother Society.

[Anonymous]

I agree it is ridiculous. At the very least it should be a soft pull.

[Anonymous]

Well, I think it is crap, whether it has been a long used policy or not.  Hard inquiries should only be made in situations where one will be granted credit.    These other situtations are pay-for-service.  One should pay in advance for the service to follow.  If one doesn't pay, then service is turned off. Plain and simple.  If service companies are that freaked out about risk, then ask for an advance deposit to be returend at cancelation or transfer of the service.

Since I'm moving, I'll have to have utilities transfered, phone transfered (company change), internet (company change) and TV (company change).

That's 4-5 inquiries!!!!    (And nope, bundling isn't an option where I'm moving to).

And, I should start the process before closing to make it all smooth.

[llecs]

DW and I moved earlier this year. We signed onto new services for electricity, water, trash, security, but bundled our phone, internet, and cable via Verizon. We did get hit with hard inquiries on Verizon and ADT. There were no hard or soft inquiries on the utilities. In our case, we were nervous about inquiries and waited 1-2 biz days before closing. However, the lender didn't pull a second time anyway so I guess we could have ordered these services sooner.  Verizon was the only pain having delayed the app because they have a 2-week lag time up here to install the service (nothing good on TV at that time anyway I bet).

Whether or not they should pull or soft is up to debate I guess. IMO, I think they can see everything via a soft. You can certainly obtain a FICO score through a soft pull. Maybe it's a requirement placed on them by the CRA(s)? I dunno. With regards to applying for credit, you are essentially. I've seen way too many posts on here for COs or collections for water, gas, electricity, phones, cable, etc.

[Anonymous]

In the case of television services, I can totally see it. That is not cheap equipment you are receiving. You haven't paid for the equipment. And any of those services don't really bill you in advance. By the time the bill is due, you are paying for service you just received. You can rack up a lot in PPV and long distance calls in a month. They aren't extending you credit in that you can go out and purchase whatever, but they are extending you credit to a certain extent. It sucks, but nothing you can do about it but complain. If they didn't run credit checks, your bill would be higher to offset the losses from deadbeats.

[tpatterson2k9]

So I'm wondering then, what if a utility company checks a new customers credit and it ends up being horrible, can the utility company outright deny service to that person?  What if they are the only provider in that area?  Generally, do they just ask for a larger deposit the lower your credit score is?

[Anonymous]

In the case of telephone service, if you fail the credit check, you can get a POTS line (plain old telephone service). That means to features (caller ID, call waiting, etc...), no long distance, and certainly no internet or TV products. They also can require a deposit for the POTS line.

[RiseandShine7907]

I called AT&T last week to have my service, that I've had with them since Feb.2010, transferred to a new address and was informed that a credit check would be done. What I couldn't understand is the need to do another credit check on a customer who is TRANSFERRING service and has always paid their bill. I politely told the rep that I would cancel service if the credit check couldn't be bypassed. I was placed on hold for all of 30 seconds. When he came back on the line he told me that he could bypass the check. I don't know if they do soft or hard inquiries, but the fact that they do credit checks just to have current service transferred is something I don't get.