Regular Contributor
Posts: 156
Registered: ‎06-01-2012
Re: Cell phone service provider Inquiries

MetalguitarJames wrote:

Call me crazy but it kind of burns me a bit when you have to waste a HP for cell phone service. Considering that it does nothing for your credit history (Unless we are talking negatively if you fail to pay) I wish it would be a SP instead. I'm staying with Straight Talk from now on. Forget wasting a hard pull for ridiculous rates anyways.

Your wireless service provider is essentially extending a line of credit to you, just not in the general sense that most people think about it.  Here's an example:


You open a new account with Verizon for 1 line of service on their lowest Share Everything plan, and purchase a Samsung Galaxy Nexus to put on the line.


1 GB Share Everything ($50 for the plan, $40 for smartphone) = $90

Samsung Galaxy Nexus (retails for $700) = $0 (free when you sign up for a new line of service)

That means, Verizon has literally invested $790 in you, because if you walk, that's how much they're going to lose.  They do a hard pull because it also determines whether you will require a security deposit or not.


You also have to realize most carriers do not have spending limits, which means you can also rack up additional charges that you may not pay, which is another liability to them.


It makes perfect sense by carriers do a HP, I fail to understand how others fail to understand.