how far it will affect people credit score

Bad credit cell phones are usually opted by people who do not enjoy good credit rating. Obtaining a cell phone with a billing scheme is not that difficult. However, it may not be availed by all. Only people who enjoy good credit ratings can easily obtain billing or post paid services. For people with bad credit cell phone with billing service is generally not offered. For obtaining a billing service one may have to undergo a lot of scrutiny. Financial portfolio of a person is highly considered before even offering him the post paid mobile phone service.

Post paid services can be compared to credit card services, wherein a user first utilizes the service then later pays the amount used. There are users who are not able to pay their bills after using the services, as they go bankrupt, which affects the revenue of the service provider. Hence, most mobile phone service providing companies consider offering billing system to those whose account reflects good credit history. Therefore whenever you try to get a billing scheme these companies peep into your credit history. These companies examine your credit score through companies like Equifax, Transunion, Lifelock and Experian.

It is believed that whenever someone runs a credit check on an account and tries to see the credit report, it may affect the credit scores of the account. There are also quick checks which are better than conventional credit examining. There are companies who try to do a quick soft credit check which does not affect your credit rating. However, this does not mean that all companies run a soft credit check. There are also companies which does a long credit which reduces the rating to some extent. This is the reason why most people do not allow a credit check on their account, which keeps them from availing billing schemes and diverting them towards other services.

Those who are unable to obtain billing mobile phones have another option. For those people with bad credit cell phone with pay as you go schemes is a perfect option. The best part about pay as you go is that you can refill your account for the amount you desire before you use the service. With prepaid services, you are aware of the amount that you spent on your mobile phone and can limit it and it also does not affect your credit ratings. Hence, prepaid phone is bad credit cell phone for people with unpleasant credit ratings.