Credit Check for the Cell Phone

Photo by Marília Almeida

Add the mobile phone company to the list of reasons you don't want to mess up your credit.

Prissy Poorhouse needs a way to get in touch with Mom and Dad during the work day. We've had one to many times when the teenage babysitter told us during the day that she wasn't going to pick up the kids. (And yes, we're kicking her to the curb, but that's another story.)

So, now that my employer is picking up part of the tab for my mobile phone, we figured we could afford the $10 a month to make sure the kids get home safely every day.

How thrilled she would be to get a phone for Christmas.

Except.

Did I mention I may have been a bit sporadic in paying my bills this year? Yeah, well, I have been. Mind you, all my bills (except the taxes) are current now. But I have had that spotty payment history.

So to add a line, the phone company gets you for a two-year contract. At 10 bucks a month, that's $240, right?

But they run a credit check. And my credit, as loyal readers will know, is not so good right now. So they want a $300 deposit.

Mind you, I just turned on my Blackberry service for $40 a month additional (employer-paid) with never a how'dya'do. But for a 2-year contract, which we don't even want, it seems I need to pay a deposit.

Yeah, but I don't have $300 to tie up in a deposit.

Looks like we'll be looking at a prepaid phone for Prissy.

Bravo Bank of America

Image via Wikipedia As I mentioned yesterday, I have an alumni affiliated Bank of America credit card. I used it for business, my business failed, I made some stupid mistakes, and my rate skyrocketed.

Today, for the first time in months I talked to a helpful, competent and compassionate account rep who put me on a 5-year payment plan and reduced my interest rate from almost 30 percent to 10 percent. Woot!

Of course there are pluses and minuses here. This was one of those bait and switch cards: 0% introductory balance transfer rate with stiff interest penalties for late payments or going over your limit. (Please don't ask how I know this). I've learned you have to be a lot more organized than I am to make it worthwhile.

And this payment plan is only available if they close my account, which puts (another) black mark on my credit report. (I'm thinking that at this point it couldn't get much blacker, but that's a thought for another day.) And, if I can come up with and additional $168 sometime over the next 6 months, they won't report it as being "closed by lender". (Doesn't that sound like extortion or something? Is that kosher to ask for payment to preserve your credit?) So I have 6 months to get over my fear of looking into my credit report, which I know can't be good.

Polly's Pointers

1. Persistence pays.

2. Beware of low interest rate teaser offers.