CellPhone Charge-Off in the Past, Rebuilding Credit and Applying for New Cell Service

[Anonymous]

Hi All,

About 4.5 years ago I signed up for a cell phone which, due to personal circumstances, had to be charged off. That and some late payments for my CC affected my credit score quite a bit. I am in the process of rebuilding my score (current Equifax FICO is 663). I have a stable job, and have been paying my bills properly for the past 3 years or so, including a car (for the past 13 months and counting). So my newest credit history is always right on time. Still, there are those things in from the past.

Anyway, I have some questions. I am moving out of state and was thinking on getting a proper cell phone service(either ATT or Tmo). My charge off was with AT&T, amount was ~$400. Would having a charge off affect in any way the chances of me getting approved to sign up a contract for a new service? I understanmd(and I am fine with this) that I might need to get a deposit done possibly. I am mainly concerned about not having any chances at all to get approved for getting new service.

Thank you!

[RobertEG]

Did you ultimately pay the debt that was charged-off?

If unpaid, I would anticipate problems until the prior debt has been satisfied.  A charge-off says you are not expected to pay your debt, and if you continue not to pay, it reinforces their perception that you are one who does not pay obligated debt.

That raises the obvious issue of whether they will become aware of the prior charge-off, or of the payment status.

If still in your CR and they do a credit check for new service, they will immediately be aware.

If the OC has become excluded from your CR, they may not become aware unless they do a more thorough manual review of their own business records.