It’s no secret that mobile phone plans can be expensive. But what you may not know is that your credit score could be affected by the type of plan you choose. In this useful credit repair article, we’ll explore how your credit score is impacted by different types of mobile phone plans, and we’ll give you some tips on how to maintain a good credit score and how credit repair can help fix bad credit history.

Many individuals are unaware that their telecommunications services, such as mobile phone plans and internet provider contracts, can have an impact on their credit score. Although telecom and utility service providers aren’t regulated credit lenders, if you default on your payments, they will affect your credit score. Defaulters are reported to a credit rating agency by these companies.

Thousands of Australian phone customers were finding themselves trapped in telecom sales cycles that they could not afford, according to an investigation by the Telecommunications Industry Ombudsman (TIO). According to the research, salespeople were inclined to offer people with costly goods beyond their means to pay for them in certain cases, especially when they needed to reach targets.

Subscribers with poor credit, insufficient funding in their checking or savings accounts, and no financial options at all may find themselves in this situation frequently. Subscribers who do not have access to any other means of payment are particularly vulnerable to phone bill default. Apart from being the consequence of sales tactics, bills that go unpaid might be the result of a variety of personal reasons or simply due to carelessness.

When you make a late payment for a bill that is more than $150 and overdue for more than 60 days, it is considered a default. Furthermore, the service providers would have taken some effort to contact you in order to recoup the debt.

If you don’t pay your phone bill on time, it will have a detrimental impact on your credit score. However, before the credit agency puts up your arrears with the credit reporting agency, they should first attempt to collect your payment as well as a notification stating their intention to do so.

A default will be on your record for the next five years. If you pay back the debt before this period is up, it will be recorded; but if you don’t, the default will remain. In truth, a bankruptcy would make things considerably worse. A bankruptcy will also be recorded for five years after you became bankrupt or two years after your bankruptcy is over, whichever comes first.

Even if you pay the bill before it becomes a default, any late payments will show up on your credit report.

It’s not all bad news when it comes to your phone plans and credit score. By performing the following, you can actually improve your credit score:

• Good payment history
• Type of credit facility
• Pre-paid mobile and broadband plans

Your credit score is one of the most important numbers in your life. It can affect everything from the interest rate you pay on a car loan to whether or not you can get approved for a mortgage. So it’s no wonder that many people are curious about their credit scores and what they can do to improve them. In this article, we looked at how your phone plan may be affecting your credit score. We hope this information helps you make decisions about which phone plan is best for you and your credit score.

Credit Repair Ausvengers is the best credit repair company to help you get your finances back on track. We have a team of experts who can assist you in repairing your credit score, so that you can be approved for a loan. Contact us today to start the credit repair process!

Source: Jasper