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Cell Phones For Bad Credit

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By George Walsh


Benefiting from a cell phone plan becomes a problem for customers who have missed payments in the past. This implies that the person has had a history of bed credit. Some cell phone service providers demand a very large amount by way of a deposit. This deposit is paid as a security measure in case the user is unable to keep up with their payments. Therefore, credit rating of a person plays an important role as it shows the ability of the person to cater to his bills.

There are two kinds of cell phone plans that service providers offer. They are billing and pre-paid. Billing plans are those which allow the user to use the phone and pay the amount later at the end of the month. On the other hand, pre-paid refers to a plan where the amount is paid first and then the phone calls are made. You can compare it to withdrawing money from a debit card from your bank account, which already has the amount being withdrawn.

Bad credit contracts for cell phones can be obtained by people who have a history of bad credits. People who have not been able to pay back some amount to someone is labeled to have a bad credit rating.

Most of the cell phone providers choose to provide their services to people having good credit rating but some of them cater to those with bad credit history. Such firms ask for a deposit which is higher than the one asked from a person with high credit score. This is mainly because of the risk involved. The sum is usually around $200-$400.

This caters to the need of a lot of customers with low credit rating. For some the initial amount may seem high. For them there are other firms who don't demand a down payment or a deposit amount. However, they are strict if you fail to pay a month's bill on time. They charge higher fees and penalties. For a lot of people with low credit score, one of the above options seems to work.




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