If you‘re in the market for a new cell phone plan, Verizon Wireless is likely one of the top contenders on your list. Known for their extensive coverage and fast data speeds, Verizon is a popular choice among consumers. But before you can enjoy all the perks of being a Verizon customer, there‘s one important (and often dreaded) step you‘ll have to go through first: the credit check.
Verizon, like most major wireless carriers, relies on credit checks to assess the risk of extending service to new customers. But what exactly does this process entail? What credit score do you need to pass? And what are your options if you have bad credit?
In this comprehensive guide, we‘ll break down everything you need to know about Verizon credit checks. We‘ll explain how they work, what Verizon looks for, and how to improve your approval odds. Plus, we‘ll share some expert tips and insights to help you navigate the process and find the best plan for your needs and budget.
Why Verizon (and Other Carriers) Run Credit Checks
First, let‘s talk about why carriers like Verizon perform credit checks in the first place. In a nutshell, it‘s all about risk assessment.
When you sign up for a cell phone plan, the carrier is essentially extending you a line of credit. They‘re trusting that you‘ll pay your bill on time each month for the services you use. If you fail to pay, the carrier loses money.
By checking your credit history and score, carriers get a sense of how responsible you are with credit and how likely you are to pay your bills on time. Customers with higher credit scores are seen as lower risk, while those with lower scores may be considered higher risk.
Your credit check results help carriers decide:
- Whether to approve or deny your application
- How much of a security deposit to charge (if any)
- Which plans and promotions you qualify for
- How much financing to extend for device purchases
In short, credit checks are a way for carriers to protect their bottom line and gauge how much to charge you upfront for service.
How Verizon‘s Credit Check Process Works
Now that you know the why behind Verizon credit checks, let‘s dive into the how. Here‘s a step-by-step breakdown of what to expect when you apply for Verizon service:
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You submit an application online, over the phone, or in-person at a Verizon store. You‘ll be asked to provide personal information like your name, address, Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN), and date of birth.
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Verizon will use the information you provide to verify your identity and pull your credit report and score. They use a hard inquiry, which means the credit check will show up on your credit report and may impact your score (more on that later).
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Verizon will review your credit report and score to determine your creditworthiness. Most customers will get an instant approval, denial, or deposit request online or over the phone. If you‘re applying in-store, it may take a few minutes to get a decision.
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If approved, you‘ll be able to choose your plan and devices and complete the activation process. If a deposit is required, you‘ll need to pay it to move forward with your order. Deposits can typically be paid via credit card, debit card, or electronic check.
It‘s important to note that Verizon only performs credit checks for postpaid accounts, which are billed monthly after you use the service. If you opt for a prepaid plan, where you pay for service upfront each month, no credit check is required.
What Credit Bureau Does Verizon Use?
Verizon pulls credit reports from Equifax, one of the three major credit bureaus. They do not disclose exactly what credit scoring model they use, but it‘s likely a specific version of the FICO Score or VantageScore.
Interestingly, Verizon only uses Equifax for consumer credit checks – they do not pull from Experian or TransUnion. So if you‘re trying to get an idea of what Verizon might see on your credit report, your Equifax report is the one to check.
It‘s also worth noting that Verizon uses a hard credit pull, also known as a hard inquiry. This means the credit check will show up on your credit report and may impact your credit score (usually by around 5-10 points). Hard inquiries stay on your report for up to two years, but their impact lessens over time.
If you‘re applying for multiple lines of credit within a short timeframe (e.g. a mortgage, auto loan, and new credit card), the additional hard pull from Verizon could compound and lower your score more significantly. That‘s why it‘s best to space out new credit applications as much as possible.
Verizon Credit Score Requirements
One of the most common questions people have about Verizon credit checks is what credit score you need to be approved. Unfortunately, Verizon does not openly share a minimum credit score requirement.
That said, based on data points from customers, here‘s what we can glean about Verizon‘s credit score standards:
- Customers with "good" credit scores (700+) are almost always approved with no deposit required. According to Equifax, the average FICO Score in the U.S. is 698, so the majority of consumers fall into this category.
- Customers with "fair" credit scores (650-699) are still likely to be approved, but may be asked to pay a deposit of $125 to $400. The deposit amount will depend on your specific credit profile.
- Customers with "poor" credit scores (below 650) are more likely to be denied, but some may still be approved with a higher deposit of up to $1,000. If you fall into this category, you may have better luck with a prepaid plan or a carrier with lower credit standards.
Keep in mind that credit score is just one factor Verizon looks at in their credit check. They also consider your overall credit history, including things like:
- Payment history
- Length of credit history
- Credit utilization
- Types of credit used
- Recent inquiries
- Derogatory marks (e.g. collections, charge-offs, etc.)
So even if your score is on the lower side, you may still have a shot at approval if the rest of your credit profile is relatively strong.
Estimated Verizon Deposit Amounts by Credit Score
To give you a better idea of what you might pay for a Verizon deposit based on your credit score, here are some estimated ranges:
| Credit Score Range | Estimated Deposit Amount |
|---|---|
| 750+ | $0 |
| 700-749 | $0 to $125 |
| 650-699 | $125 to $400 |
| 600-649 | $400 to $1,000 |
| Below 600 | $1,000+, or denied |
Again, these are just estimates based on customer reports – your actual deposit amount may vary based on your specific credit profile and other factors like the number of lines you‘re opening and the devices you‘re financing.
It‘s also worth noting that if you do have to pay a deposit, Verizon will refund it to you after 12-18 months of on-time payments. So while it may sting to pay a big chunk of money upfront, you will get it back eventually as long as you‘re a responsible customer.
Verizon Credit Check Policy for Businesses
So far we‘ve focused primarily on Verizon‘s credit check process for consumer accounts. But what if you‘re a business owner looking to set up cell phone service for your company?
Verizon does run credit checks for business accounts as well. However, the process and requirements are a bit different than for consumer accounts.
When you apply for a business account with Verizon, they will pull your business credit report from Dun & Bradstreet (D&B) instead of Equifax. D&B is a credit reporting agency that specializes in business credit.
Verizon will look at your D&B business credit score, which ranges from 0 to 100 (with 100 being the best). They‘ll also consider factors like:
- Years in business
- Annual revenue
- Number of employees
- Industry type
- Payment history with other vendors/creditors
In general, businesses with a D&B score of 80 or higher and a strong financial track record are most likely to be approved for Verizon business accounts with favorable terms.
If your business doesn‘t have a D&B credit file or has limited history, Verizon may ask for a personal guarantee from the business owner. This means your personal credit would be checked in addition to your business credit, and you‘d be personally liable for any unpaid balances.
Verizon may also require a deposit for business accounts, especially for newer businesses or those with lower credit scores. Deposit amounts can vary widely depending on the size and creditworthiness of the business.
How to Improve Your Odds of Passing Verizon‘s Credit Check
If you‘re planning on applying for Verizon service but are worried about passing the credit check, there are some things you can do to improve your approval odds:
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Check your credit report: Before applying, pull your free credit report from Equifax at AnnualCreditReport.com. Review it carefully for any errors or inaccuracies that could be dragging down your score. If you find any, dispute them with the credit bureau right away.
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Pay down debt: High credit card balances and other debt can negatively impact your credit utilization ratio, which is a key factor in your score. Work on paying down your balances as much as possible before applying to Verizon.
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Avoid new credit applications: Each time you apply for credit, a hard inquiry is generated on your report. Too many inquiries in a short timeframe can be a red flag to lenders and lower your score. Avoid applying for any new credit cards, loans, or other lines of credit in the months leading up to your Verizon application.
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Become an authorized user: If you have a family member or friend with excellent credit, ask if they‘ll add you as an authorized user on one of their credit card accounts. Their positive payment history and credit utilization will be reported on your credit report, which could give your score a boost.
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Consider a cosigner: If you have poor credit or no credit history, you may have better luck getting approved for Verizon service if you have a cosigner with strong credit. Just be aware that the cosigner will be equally responsible for the account and any missed payments will impact both of your credit scores.
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Be honest on your application: Lying or omitting information on your Verizon application is never a good idea. Not only can it lead to automatic denial, but it could also be considered fraud. Always be truthful about your personal and financial information.
Alternatives if You Don‘t Pass Verizon‘s Credit Check
If you‘ve done everything you can to improve your credit but still end up being denied for Verizon service, don‘t lose hope. There are still plenty of ways you can get reliable cell phone service:
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Verizon Prepaid: Verizon offers prepaid plans that don‘t require a credit check or deposit. You‘ll pay for each month of service upfront, but you‘ll still get access to Verizon‘s nationwide network. Just keep in mind that prepaid plans typically have fewer features and perks than postpaid.
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Visible: Visible is a budget-friendly prepaid carrier owned by Verizon that runs on Verizon‘s network. They offer unlimited talk, text, and data plans starting at just $30/month with no credit check required. The catch is that data speeds may be slowed during times of network congestion.
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Other carriers: If you have your heart set on a postpaid plan, you may have better luck with other major carriers like AT&T or T-Mobile. They tend to have slightly more lenient credit requirements than Verizon. You could also look into smaller carriers or mobile virtual network operators (MVNOs) that piggyback off the major networks.
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Get a secured credit card: If you‘re looking to build or rebuild your credit, a secured credit card can be a great option. These cards require a cash deposit that becomes your credit limit, but they report to the credit bureaus each month just like a regular credit card. Use it responsibly and over time, your credit score should improve.
The key is to shop around and find the best option for your specific needs and financial situation. Don‘t be afraid to ask questions and read the fine print before signing up for any cell phone plan.
The Bottom Line
Credit checks are a necessary evil when it comes to signing up for cell phone service with major carriers like Verizon. By understanding how the process works and what Verizon looks for, you can take steps to improve your approval odds and avoid any surprises.
If you do end up having to pay a deposit, remember that it‘s not lost money – you‘ll get it back as long as you make your payments on time. And if you‘re not able to pass Verizon‘s credit check right now, you still have options for getting reliable service.
At the end of the day, the most important thing is to be an informed and savvy shopper. Don‘t be afraid to ask questions, compare plans and prices, and read customer reviews before making a decision. With a little research and preparation, you can find the perfect cell phone plan for your budget and lifestyle.
