The intent of this article is to educate about the basic categories of service within the cell phone industry. It will also recomend which category is the best choice of cell phone service for people with bad credit.
The cell phone industry has basically two classifications of services. One is called post paid service. This is mainly the big 4 national companies everyone is familar with: Verizon, AT&T, Sprint and T-mobile. The other is called pre-paid service which is provided by names that may be familar depending on which particular part of the U.S. you live in: Cricket, Metro PC, Virgin, Boost Mobile, US Cellular, etc. Most of these companies are in some way affiliated with one of the big 4 because often it is their cell phone towers that are being used to provide the service.
The essential difference to you the cell phone user is how the service is provided and paid for, which controls how the companies approach to you. Post-paid cell phone service allows you to activate the service first and then pay later. This is why they have credit checks, and if approve they want to try and keep you with contracts, and why you’re given the convenience of allowing some part of the balance to carry over each month.
By contrast… Pre-paid cell phone service requires payment for the services upfront and then you can use it. Until the balance runs down. Then you have to make additional payments before you can continue using it. By handling customers this way there is no risk to the cell company. Which means no credit checks neccessary
This is why pre-paid cell phone service is the best option for people with bad credit.
It may be simpiler to think of pre-paid cell phone service similar to the calling cards that were so popular a few years ago. Everyone understood you bought a $25 calling card to use at any payphone. When the card ran out you threw it away and bought a new one. Then things advanced to reloadable cards. Now when the $25 was used up you just put more money on the card and continued to use any payphone. Well this concept is exactly the same. Except now, no more payphones. They include the cell phone with it. Now you are reloading the phone itself.
But the post paid cell phone service is more comparable to credit cards than calling cards. You are approved up front for the service. Then they take the risk by allowing you to accumulate a charge for the service. Then they mail you a bill and attempt to collect payment. This is a risk to the company because there will always be those who don’t pay on time. There will always be those who never pay in full. And, there will always be those who never pay at all.
This is the reason why post-paid cell phone companies will always have requirments for credit checks to see if you have a good payment history. If you do the post paid companies will turn your services on for you and send you the bill later. However.. if you do not, they will ask for a deposit. Or place limitations on you which restrict the service. Or they just turn you down for sevice all together.
However the pre-paid cell phone service never has any credit checks. They never have contracts. Which means there are never any early termination fees. For these reasons pre-paid cell phone service will usually always be the better option a for people with bad credit. Or if you are someone who just does not want a contract.
However just like most things… there are some important points to be aware of with pre-paid cell phone service. For example, lets say your payment is due at the end of the month, and then you do not pay by the end of the month.. you can definitely expect your service to be interrupted on the first of the month. And despite what stiuation you may be experiencing, there is virtually no chance they will turn your phone back on until payment is made. And on top of that, if too much time passes since the last payment.. your service will be cancel, your phone number will be given away, and you will have to sign up for service all over again with a new cell phone number.
Because these situations can definitely occur most all pre-paid cell phone companies make it easy for you to keep up with your minutes, and payment due dates. They make it simple to always know exactly how many minutes you’ve use and how many minutes you have left. It all can easily seen online.. and/or you can access your account details directly from the cell phone itself.
The other big difference with prepaid cell phone service is that at the time this article was completed, no pre-paid company were offering family plans. Which means, for example, If there are 4 people in your home… that will be 4 seperate accounts… and 4 seperate monthly bills.
We hope that this information will help you in making a decision on which service to choose. However.. If you already know you have a negative credit. Or have already been denied, or asked to pay a big deposit by Sprint, AT&T, Verizon or T-Mobile. You can easily apply for, and be approved for pre-paid cell phone service today.
BadCreditAssistance.com is a member of Consumers Info USA. We provide information, education and assistance to help people with negative credit reports obtain the financial services they need. You can get more information, and apply for Uk marriage visa prepaid cell phone service online at Uk marriage visa http://www.badcreditassistance.com/cell_phones.html