Credit Cards and Mobile Bills

Recently more and more Americans are making credit card applications which they are not approved of and the reason for it is not always clear. However, really, there’s one thing, at first sight petty, that can easily affect your credit card application. It is cell phone bills, would you believe! Let’s define how they can possibly prevent you from getting credit and what credit is made of on the whole.

An average American citizen is always in for improving his finances, so he/she applies for credit. Just to apply for credit card is not enough however, you need to work hard and display perfect qualities as a credit consumer. What is implied by a perfect credit consumer’s qualities? It is when you apply for the right credit card and get instant online credit card approval, it’s when you do not have delayed or missed payments on your credit card and you keep within the credit limit available to you. In addition, it is highly appreciated when you make more than the minimum monthly payments and have your payment information reported to all the three main credit reporting bureaus.

All these points are reflected in a special document, called credit report that displays everything about your credit. Each time you fill out online credit card application and get approved for it, it is shown up in credit report. When you open or close an account, how you make monthly payments, whether you filed for bankruptcy or had your credit card stolen – all these things are contained in credit report and make up a certain credit history.

About 40 % of your payment history is contained in your credit report but you would probably be very surprised to know that your cell phone bills can also accrue and most often they do in your credit file.

And inaccurate payment of your cell phone bills does affect your credit score! Just imagine that a couple of missed or delayed payments on your mobile phone charges can prevent you from being approved of your next credit card application for best credit cards, like gasoline credit card, hotel rewards credit card or credit card with cash back. You can forever forget about credit cards with no fees, lowest APRs and additional programs, like protection plan for purchases or fraud if you abuse paying for your wireless communication.

Conclusion? Take care of you cell phone bills if you’re going to apply for best credit cards and get a guaranteed approval. Remember that cell phone companies, just like other credit card companies, report to credit card bureaus, and negative statements on your cell phone payment history inevitably reduce your credit score and damage your credit history. The mobile phone provider reports such information as opening and closing the account as well as overdue accounts. Even if you’ve changed your cell phone and are using a new one at the moment, your old phone’s payment history also exerts your credit report.

Thus, it appears that buying a cell phone and making payments for it can also start up your credit score and properly paid bills without delays and skips add up to your credit worthiness. It’s a good way for young people to learn money management and begin their credit history so as to have more chances to get a guaranteed credit card approval in future.

Doug Nicholas

Doug Nicholas, a financial consultant by profession with a Masters degree in International Business from Brown University, is also an ardent writer. Though he has a full time job at one of the companies listed on Wall Street, he does manage to squeeze in time to follow his passion. He puts his ideas to words in his articles related to finance and business.