Bad Credit Means Paying More For iPhones and Cellphones

As demand picks up for the iPhone, many consumers are finding that they are having to pay a premium price in order to get their hands on one. According to Nick Starr, those with bad credit may have to pay up to an additional $750 just for the privilege of owning one of these phones. The extra money is a deposit that Cingular requires for customers that don’t meet their credit standards. All told, that can bump the price up to more than $1350.That extra money is not refundable in many cases, and takes an already expensive phone well above the limit most consumers would like to pay. If you are interested in getting an iPhone, or any other cellphone, it is important to try to fix your credit score if you don’t want to end up spending too much money. Before you run out to the Apple store to get your hands on the latest iPhone, here are a few steps that you should take to see just how much you’re going to end up paying.

Step One -

Get a free copy of your credit report and credit score. Your credit score as it relates to others is available for free to users of our site: Credit Karma.  Your Trans Union, Experian, or Equifax you can be obtained via a Credit Karma Offer from True Credit.  This will give you a better idea of what you’ll be working with, and more importantly, you’ll be able to spot any potential errors before you go to buy your iPhone.

Step Two -

Correct any errors. Once you have carefully read through your credit reports, you will need to see if there are any errors or any accounts that you may not be aware of. These can drag down your credit score, the standard used by Cingular to see whether or not they will need to charge you a deposit on your phone. In order to correct any errors, you will need to file a dispute with each credit bureau. This can be done by phone, mail or even online. The process of correcting an error can take up to 45 days, so make sure you allow yourself plenty of time to get everything fixed.

Step Three -

Fix any collection accounts. This is one of the worst things you can have on a credit report and these collections will affect your score. Either pay them off, agree to a settlement with the company, or if they are inaccurate, file a dispute with the credit reporting agencies. Once again, this process can take up to 45 days so it is best to do this simultaneously with step two.

Monitoring your credit score on a regular basis can help you stay on top of errors and any issues that may be affecting your score adversely. Once you spot these errors, handle them quickly so you don’t end up in a situation of having to pay more for the necessities or even the luxuries in life.

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