What Credit Score Does A Phone Company Consider As “Bad Credit”?
As we all know a ‘bad credit’ score can make it pretty hard to buy a cell phone, as many companies check your credit before they sell you any of their devices. But what exactly is considered a ‘bad credit’? Generally speaking, a ‘bad credit’ is considered a credit score of 600 or less.
However, phone companies, in particular, may have slightly different criteria, and those criteria vary between companies, carriers, and retailers. For example, the popular carrier company Spirit considers a credit score of 700 or more as ‘excellent credit’. A credit score between 700 and 550 is considered ‘good credit’. And a credit score below 550 is labeled on Spirit’s official website as ‘fair credit’. Unofficially though, a credit below 500 is considered ‘not good’. Similarly, AT&T doesn’t sell plans or devices without a deposit to people with credit scores below 600.
Luckily, there are other companies that will gladly sell you an unlocked cell phone without a deposit, even if you have very bad credit or no credit history at all. In this article, you will find out everything you need to know about getting an unlocked cell phone with no credit check and no deposit.
In case you also need information about Free Phones with No Credit Card Needed read our past article.
Things To Consider Before Purchasing Or Financing An Unlocked Cell Phone
Nowadays, cell phones and smartphones in particular can be very affordable, but they can also be incredibly expensive. Therefore, before you decide to purchase an unlocked cell phone with no credit check and no deposit you should take a few factors into consideration.
Cell phone brand, model, specifications, and price
Of course, the first thing you should think about is the phone itself. You want to buy a high-quality device that best fits your needs and one that you can afford. As such, you should consider the brand – is it a reliable manufacturer known for producing high-quality and durable devices and offers great service, customer support, etc.? The particular model is the next important consideration. Nowadays there are thousands of different cell phone models on the market. You can get a basic flip phone or an advanced smartphone with all the latest features. Some phones are small, some are large, some have better cameras, others have longer battery lives, etc.
Before you opt for a particular model, check out its characteristics, features, and specifications. Make up your mind about what kind of a device you need and what exactly you will use it for. If you are a passionate photographer, you may need a phone with a great camera. If you are a senior citizen, you may desire a device with a simple interface and various health apps and emergency features. If you are into gaming or entertainment, you will probably need a fast and powerful device with a large HQ screen and high-quality speakers. Think about your needs and desires and in the end, you will probably also want to consider the price.
Seller’s reputation
When it comes to buying an unlocked cell phone, the seller also plays a considerable part. You will probably want to buy your device from a reputable seller that offers great phones at affordable prices. Make sure the seller is not trying to rip you off and that they are likely to support you and grant potential service even after the purchase. If possible, check the seller’s reputation before the purchase.
Brand availability
To buy the phone that will best serve you and best fit your needs it’s best to choose a retailer that offers a wide selection of different models by different brands. This way you will be most likely to find the right device for you.
Financing options and frequency
Also, make sure to ask the seller about their financing options. Check if they offer monthly financing, yearly financing, or any other discounts and special offers. It’s of utmost importance to check how long will it take for you to pay off the loan and how frequently will you have to pay a portion (you may receive bills on a yearly, monthly, semi-monthly, or weekly basis). In the end, choose an option that best fits your budget, your income, and your overall situation.
Interest rate
An interest rate is the amount of interest due per period, a proportion of the amount lent. It is a percentage amount of the product amount – an additional sum of money that the seller will take as a charge of giving you the loan. The interest rate depends fully on the seller. Some offer a low 5% interest rate, others only offer rather high interest rates (e.g. 10%), and there are even a few retailers that don’t take any interest rate at all, which is, obviously, the best option for you as it will save you the most money.
Turnaround time
Turnaround time is the estimated amount of time it will take to pay off the loan. This is important because in case you have to pay an interest rate you want the shortest possible turnaround time, as paying a 5% interest rate for 6 months is better and saves you more money than paying a 10% interest rate for 12 months.
How To Get Unlocked Cell Phones With No Credit Check No Deposit?
The most obvious ways to get a cell phone with no or bad credit are to buy the device up-front, as no one will check your credit if you have enough money to buy it in one payment and to pay a security deposit, which you may get back if you pay your bills regularly and if your carrier offers such refunds. However, even if you don’t have the money to pay up-front and you don’t want to pay a deposit, there are still a number of different ways to buy a cell phone.
Sign-up for a prepaid plan
Getting a prepaid plan means paying for the talk, text, and data in advance. Doing so will keep the carrier company from checking your credit. This will allow you to get an unlocked phone you desire and you won’t have to stick to a specific carrier. This option also allows you to purchase your phone anywhere and not in a specific store, which will enable you to get the best possible price. There are lots of companies that offer prepaid plans, including the big four – T-Mobile, AT&T, Sprint, and Verizon. In addition, there are some carrier companies that offer affordable yet quality prepaid services without contracts or credit checks, including Cricket Wireless and Boost Mobile.
Buy now, pay later cell phones with no credit check
A buy now, pay later offer allows you the get the phone now and pay for it later in equal monthly payments that last a year or two. This kind of deal allows you to get a great phone without paying a security deposit or undergoing a credit check. In addition to the monthly installments, you will pay monthly carrier charges.
Enroll in a family plan
Family plans can accommodate up to 10 lines, yet only the primary account holder has to have good credit. Other members are not required to pass a credit check at all. Not only is this one of the simplest ways to get a cell phone with no credit, but it’s also an effective way to save money – family plans namely tend to be cheaper than single plans.
Get someone to cosign with you
You can also get a phone with no credit if you find a person with good credit that is willing to cosign with you and thus guarantee that at least one of you will surely pay the monthly installments. The account will be under the name of your co-signer and he or she will have to pay the installments in case you won’t be able to. After a while, you will be able to transfer the account to your name. If you decide to do so, know that they will run a credit check on you, but you won’t be required to pay a security deposit.
Use international credit history
In case you have just moved to the US from a different country you probably don’t have any credit history or score. And as most carriers are restricted to specific geographical areas you won’t be able to show the credit history or score you have had in the country you have previously lived in. Luckily, there are some financial institutions, such as Nova Credit that can transfer your credit report from other countries to the US.
Strive to be an authorized user
Finally, you can find a company that allows a user to be under the name of someone else. This way you can use their good credit score to sign a contract and purchase a device. If you fail to pay the bills on time, this other person’s credit score will be affected, on the other hand, if you do pay on time, his or her credit score will improve. This option is similar to getting someone to cosign with you. This is a great way to buy a phone with no credit, however, make sure to pay the installments on time.
Top 4 Unlocked Cell Phone Providers With No Credit Check No Deposit
As many American’s prefer to buy their phones at the ‘big four’ – Sprint, AT&T, Verizon, or T-Mobile, mostly because of their top network coverage, we will first take a look at their options. First, let’s clarify that it is possible to get an unlocked cell phone with no credit check and no deposit at those four carrier companies. Now, let’s figure out exactly how to do so.
Sprint – Unlocked Cell Phones Provider With No Credit Check No Deposit
Sprint recently introduced their ‘No Credit Check’ plan, which is a wonderful option for all customers with no credit history or a bad credit score. You can sign up for the Unlimited Kickstart plan, which offers unlimited talk, text, and data for only $35 a month. This plan is the most affordable one from any of the big four. It has no annual contract and it allows you to either bring your phone or buy a new one. If you are planning to buy a phone and if you want to save money, consider opting for a pre-owned device. The prices of pre-owned devices from Sprint start at $49.
AT&T – Unlocked Cell Phones Provider With No Credit Check No Deposit
AT&T prepaid allows you to skip the credit check. The company offers several prepaid plans. All of those plans include unlimited talk and text within the country, as well as unlimited text to over 100 other countries. The only real difference is in the amount of data you require per month and as such also the price. The plan that includes 2 GB of data costs $35 a month, the plan with unlimited data, on the other hand, costs $65 a month. The company allows you to bring your own phone or buy a new one. The prices of new AT&T smartphones start at $39.99.
Verizon – Unlocked Cell Phones Provider With No Credit Check No Deposit
Verizon also offers a prepaid plan that will enable you to buy a phone with bad credit. They allow you to buy a phone with no contract (prices start at $59.99) or to bring your old one. All of Verizon’s prepaid plans come with unlimited talk and text to over 200 destinations worldwide. Their most affordable prepaid plan comes with unlimited talk, text, and 500 MB of data.
T-Mobile – Unlocked Cell Phones Provider With No Credit Check No Deposit
T-Mobile offers a variety of Simply Prepaid plans. The most affordable plan comes with unlimited domestic talk, text, and 10 GB of data and costs $40. The best thing about T-Mobile is that even with their Simply Prepaid plan, you can be eligible for their Smartphone Equality program, which grants access to the best pricing deals on their phones and plans to those consumers who have for the past 12 months made regular payments. This allows you to switch to post-paid plans and devices without a check after 12 months. The best option may be to use your old cell phone for the first 12 months and then you will be able to buy whichever device you want, regardless of the price. Do you want to learn more about T-Mobile Compatible Phone
If you are flexible and willing to go another way, there are plenty of smaller carrier and phone providers that offer great no credit check and no deposit prepaid deals. Generally speaking, any prepaid plan at any carrier company will allow you to avoid the credit check and thus buy a phone and a plan even if you have bad credit or no credit history at all. Some of the smaller carrier companies that offer great prepaid deals include Cricket Wireless, Straight Talk, Boost Mobile, TextNow Wireless, Tello, Xfinity Mobile, Spectrum Mobile, US Mobile, TWIGBY, Republic Wireless, and Pure TalkUSA. Check out some of their offers to fit the one that may best fit your needs.
Read one of our past articles Free Cell Phone No Deposit No Activation Fee
Top 4 Financial Companies For Unlocked Cell Phones With No Credit Check No Deposit
1. Phones.Credit
Phones.Credit is a great company that offers unlocked phones without a credit check and without having to pay a security deposit with a buy now pay later option. They offer loans on phones through Electro Finance. You simply apply for a loan on their website and once you get approved you can contact them and complete your order.
Their requirements for the buy now pay later option:
- You must be 18 or more years old.
- You need a valid Social Security Number (SSN) or Taxpayer ID Number (ITIN).
- You have to provide routing and account numbers for an active checking account.
- You need a credit or debit card.
advantage of Phones.Credit
- They offer a wide selection of different cell phones, but as they don’t allow you to buy the device anywhere else you are pretty much limited on their offer.
- They provide 5-star customer service.
- Their service is available nationwide, except in NJ, WI, VT, MN.
- Credit may not be required, however, credit information and consumer reports may be reviewed.
- They offer a 12 month pay off period with an early buy out option of 53% and a 90-day pay off period.
- Payments can be made weekly, bi-weekly, semi-monthly, or monthly.
- There are no interest rates.
2. Electro Finance
Electro Finance is a financial company and service that enables customers to buy electronic devices today and pay for them later, during the course of an agreed period of time. Apply for a loan online, shop for your new device online, and get the decision whether or not you qualify for their services instantly.
Their requirements for the buy now pay later option:
- You must be 18 or more years old.
- You need a valid Social Security Number (SSN) or Taxpayer ID Number (ITIN).
- An active checking account.
- You need a credit or debit card for the initial payment.
advantage of ElectroFinance
- They offer a wide selection of different electronic devices, including cell phones, but as they don’t allow you to buy the device anywhere else you are pretty much limited on their offer.
- They provide 5-star customer service.
- Their service is available nationwide, except in MN, NJ, WI, and WY.
- They offer same-day pickup on most items.
- Once you select your product online and apply for the loan you will get the decision whether you can get it instantly.
Disadvantage of ElectroFinance
- They don’t have a return policy but you can return a defective item within 24 to 36 hours.
- Their website offers limited information on the exact terms of getting the loan and the payment options.
3. Luther sales
Luther sales is a financial company that offers various buy now pay later plans, low payments, and flexible pay off options. They sell a very wide selection of different items furniture, accessories, sporting goods, electronic devices, and a number of unlocked cell phones. If you find a device that fits your needs, you can simply apply for the loan online and you will get the approval the same day.
Their requirements for the buy now pay later option:
- You must be 18 or more years old.
- You need a valid Social Security Number (SSN) or Taxpayer ID Number (ITIN).
- You must provide employment information.
Advantage of Luther sales
- They offer a wide selection of different products, including cell phones, but as they don’t allow you to buy the device anywhere else you are pretty much limited on their offer.
- They provide in-house customer service.
- They offer a 3-minute easy application and same day approval.
- They offer low payments in up to 36 monthly installments.
- They offer several payment frequency options – monthly, semi-monthly, weekly, and bi-weekly.
- They have no membership fees.
- There is no need for a credit card.
- The approval is based on the customer’s work history.
- They offer free delivery.
4. Rent Delite
RentDelite is rent to own online store that sells furniture, fashion items, appliances, and electronic devices – including phones. They offer more than 50000 branded products and flexible rental options for customers with bad credit. You can get a loan on products for up to $2500. You can apply for a loan online and get instant approval.
Their requirements for the buy now pay later option:
- You must be 18 or more years old.
- You need a credit or debit card for the initial payment.
- Must have a steady, proven source of income.
- Must provide an email address.
Advantage of RentDelite
- They offer a wide selection of different products, including cell phones, but as they don’t allow you to buy the device anywhere else you are pretty much limited on their offer.
- They have no interest rates.
- There is no deposit or down payment needed.
- They offer instant approvals.
- They have no long-term contracts.
- They constantly update their storage and always offer brand new products.
- They offer affordable installments (up to 12 months).
- They offer several payment frequency options – monthly, semi-monthly, weekly, and bi-weekly.
- You can pay off the product earlier.
- They allow you to see how many payments are required for a particular device and thus calculate the total payment.
Top 3 Stores That Provide Unlocked Cell Phones With No Credit Check No Deposit
1. Best Buy
One of the best stores that offer unlocked cell phones with no credit check and no deposit is Best Buy. Their Lease to own progressive leasing option, which is available nationwide, except in MN, NJ, VT, WI, WY, and PR, allows you to purchase a phone with bad credit. To get a new phone this way, you must meet their requirements – be 18 years old or older, have a valid SSN or ITIN, and have a credit or debit card. I have all that, you can apply for their leasing option (in the store or online), and keep in mind that the approval isn’t based on your credit score but on your employment and banking history instead. If your request is approved, you will have flexible payment options – a standard 12-month option, a 90-day option, or an early buyout option.
2. Walmart
Walmart offers a ‘buy now, pay later’ installment financing option which can be used for purchasing various kinds of products, including cell phones. They have an agreement with Affirm, a loan service provider that enables customers to buy a cell phone at Walmart (either in the store or online) and pay for the device later in affordable monthly installments. They offer flexible pay-off periods (you can pay for the product in 3, 6, or 12 months) and low-interest rates. If you decide to use this payment option in the store, your shop assistant will guide you through the steps and if you choose to do so online, you can simply select an item and at the checkout, you will be able to choose the Affirm buy now, pay later option and see both the terms and the amount of interest.
3. Apple store
If you have your heart set on buying an iPhone, you can do it directly in an Apple store, even if you have bad credit and no money for paying a deposit. That’s right! Apple offers financial help for their clients who have a bad credit score. They offer a Rent to Own iPhone No Credit Check program that enables clients to pay for the device later and in installments within an agreed period of time, which depends on the price, seller, product quality, etc. You will be required to find a reputable seller, fill the application form at the seller (either in-store or online), and submitting it. If your request is accepted you will simply sign the agreement stating the amount of money and the agreed period you have to pay off the device.
Many other major stores also offer unlocked cell phones with no credit check, no deposit, and the buy-now-pay-later option, including Target and Amazon.
Benefits Of Unlocked Cell Phones
Take a look at the biggest benefits of unlocked phones.
- Unlocked phones provide the ultimate freedom. They allow you to choose the plan, the device, the retailer, and the carrier.
- They work on all major USA networks.
- When it comes to unlocked phones, there are lots of different models available. Not only can you find brand new models, older models are also available.
- Getting an unlimited phone can save you money. Unlocked phones come with preinstalled data and features, therefore you won’t have to pay additional charges for those benefits. As such, unlimited phones also tend to offer more features.
- Unlocked phones are also the best option for frequent travelers as they will be able to use local SIM cards and thus pay lower rates for phone calls, texts, and data usage.
- There are tons of retailers who sell unlocked phones. They offer different brands, financing options, interest rates, and turnaround times, therefore you will easily be able to find one that best fits your needs.
FAQ
How does cell phone financing work?
Financing splits the retail price of the phone into a number of equal payments. Usually, you get a monthly payment with different interest rates (depending on the seller). If you choose a two year payment period, the payment will be split into 24 equal monthly payments. For example, if you purchase a $1200 worth phone, you will pay 24 monthly payments of $50. When your financing period is up, your phone will be paid off and fully yours.
Why retailers are more credit-focused?
Retailers tend to check the customer’s credits simply because they have to make sure they will actually be able to make the payments. As customers are usually unable to pay the full price up-front, retailers are now more credit-focused than before, especially when it comes to new customers.
Why are you seeing monthly phone payment plans now?
As buying cell phones has become such a frequent and common thing to do, manufacturers no longer pay carriers for selling their devices. And non-contract phone options have become very common, therefore there is no need to commit to a specific carrier coverage plan. Both retailers and customers are beginning to consider getting a phone and getting service as two different and separate things.
Why do some retailers deny selling you a cell phone if you have bad credit?
Some retailers won’t sell you a device if you have bad credit simply because they are afraid you won’t be able to pay it off. However, there are lots of ways to get a phone with bad credit, including paying for the device up-front, paying a deposit, getting a prepaid plan, etc.
What is the fastest way to build credit and improve a bad credit rating?
There are several ways how to build your credit score from scratch. Some of the simplest, fastest, and most common ways to do so is by getting store cards from different shops, restaurants, and services, applying for a secured credit card, finding a cosigner when getting a loan, getting a credit-builder loan, becoming an authorized user on someone’s credit card, and by getting a student card (if applicable).
