Cell Phone

[Anonymous]

Hey everyone.

I'm currently thinking about switching cell phone providers. I recently moved and my old provider doesn't have the best service in my new location. The only problem is that I have another year left on my contract. I'm really new to having credit (last March makes a year since I opened my first credit account), and I don't want to hurt my credit since I'm still building it.

So of course, my question is will terminating my contract early hurt my FICO score?

Thanks for your help.

CHAD

[Anonymous]

They don't care if you terminate contracts early, they usually have a penalty fee. If you just cancel and walk away, yes it can be extremely damaging to credit. Sometimes you can get them to waive the early termination penalty feel. But you do not have to stay in your contract. As long as you cancel under their terms it's fine.

[Anonymous]

great to hear. Thanks so much.

[Anonymous]

Your household bills such as Phone, cable, internet, gas, electricity etc have no bearing on your credit rating at all....UNLESS it gets sent to the collection agency for a very past due account, for example 3 months of not paying.

You could pay every single one of your bills 2 weeks late every month, and it has nothing to do with your credit score, as long as it does not go to a collection agency, simple as that. 

If you end your contract early, you are going to have to pay the difference..whether you have 1 month left or 3 months left...or it's a breach of contract.

Message Edited by firstinlastout on 06-22-2008 02:46 PM

[Anonymous]

On rare occasions, these accounts do report, even when they're in good standing.  I have a natural gas account on my reports from an apartment I lived in about 6 years ago.

[Anonymous]

new cell phone will pull hard inquiry.  Verizon pulls EX

[Anonymous]

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@Anonymous wrote:

new cell phone will pull hard inquiry.  Verizon pulls EX

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If you're already a customer with BellSouth/AT&T, they'll give you a cell account with no credit check. I think you need to be with them for at least a year, though. Not sure about that.

'Course that was about 6 years ago for me. But they authorized me for 4 cellular lines with no credit check. YMMV.

[Anonymous]

new phone account with Tmobile..hard pull...they use TransUnion

[Kris1228]

I work for one of the largest Wireless Providers and under certain circumstances will we waive an early termination fee, Such as no service in your HOME area, death, etc.. So when you mean you dont have service do you mean you sometimes drop a call or cannot make/ recieve calls while you are home? If you decide to just cancel as long as you pay your last bill with early term fee you will be fine.. I have switched providers before and just paid the fee.. Wireless providers do not report monthly payments or if you are late. ONLY if the account is sent to collections and/or charged off..... Hope my information helps. If you have more questions dont hesitate to ask.

PS... Some providers also have a variable etf.. So you if you cancel 20 months into a 2yr contract you will not pay the entire fee of lets say 175.00 it will be prorated..

Message Edited by Kris1228 on 06-23-2008 10:18 AM

[Anonymous]

In my case I had Cingular (now AT&T) and they have no service at all where I'm moving.  So had to get Verizon.  They told me no hard pull but did anyway. People are not so straight up lately.  If I use another EX inquiry it will be costly now.