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Credit Card Applications » News » Other » Credit Cards and Mobile Bills

Credit Cards and Mobile Bills

March 12, 2007 | Updated on March 12, 2007
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The content is accurate at the time of publication and is subject to change.
This content is not provided by Citi. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by the Citi.

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.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
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