Cell Bills now on Credit Reports

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Cell Bills now on Credit Reports

Recently we’ve seen a number of cellular phone providers start to report account activity on the Credit Bureau whereas they have never done in the past.  This means that, going forward, a simple error in timing that results in your monthly cell payment not being processed on time could seriously impact your credit worthiness. This is just another way that cell phone providers will now make it more difficult to dispute charges with them. Most of us have had many countless occasions where our cell bills were inaccurate and we had to call our provider to get the bill corrected. Now, if the cell provider decides not to agree with our dispute and we refuse to pay, they can report this on our bureaus and this will have a serious and immediate impact on our credit score. The following article from www.CreditReport.com highlights the importance of making these routine monthly payments on time.

“Many people have no idea just what kind of information is contained in their credit reports. Did you know your cell phone payment history may affect your credit score? Just like other creditors, cell phone companies report to credit bureaus. Negative remarks from cell phone companies–such as late or missed payments, account closures, and account collection–may reduce your credit score.

One of the most important factors in determining your credit score is your payment history. Thirty-five percent of your credit score is calculated based on your payment history. Miss a few payments, and it shows up on your credit report. Some financial advisors believe missed payments may affect your score even more than paying your home mortgage on time.

Your credit report contains information on all types of accounts. When you applied for your cell phone account, you probably had to provide personal information so the provider could check your credit history. Your cell phone provider reports open accounts to credit bureaus. Your credit report contains information such as open accounts and closed accounts, as well as accounts that are past due. Even your previous cell phone payment history may show up on your credit report.

Your credit report is basically a measure of your credit worthiness. It’s the first thing potential lenders consider when determining if they want to work with you. If you don’t take care of your cell phone bill as you would any other credit card bill or line of credit, you may pay for it the next time you try to take out a loan or apply for another credit card.”

Important Reminder Regarding Your Mortgage Renewal

If your mortgage is up for renewal and you are being contacted by your lender to early renew before the maturity date please call or email us before signing the renewal. We are able to give you a quick recap of rates in the market to make sure you aren’t signing for a rate/term that isn’t beneficial for you. Often times your lender will tell you that you only have a very limited time to sign the renewal to pressure you into taking the rate they want. Get in touch with us for a quick 2nd opinion!

If you require any further information regarding this article or any other mortgage matters please contact our office at 604‐556‐3893. Also, as a reminder to anyone looking for a mortgage, we offer 4 month pre-approvals at no cost to you. This means that you can get a rate hold for up to 4 months to protect yourself in case rates rise.

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About the Author:

Alex Kotai

Alex Kotai has worked in the mortgage lending business for over 10 years. His career started at HSBC Bank Canada where he spent most of his time in senior management roles which involved training and managing the sales staff at his branch. After leaving HSBC, Alex decided to open his own mortgage brokerage firm, Your Mortgage Source. Through his company, Alex has access to many lenders across the country with a very expansive list of products.