The simple answer to “Does T-Mobile Report to Credit Bureaus” is Yes.
All mobile carriers, except for pre-paid plans check your credit report, score, and history to find out whether you pay your bills on time.
If the mobile carrier asks you for your social security number, this generally means they will check your credit.
Also, if you fail to pay your T-Mobile phone bill on time, the company will report your account as delinquent. You should also know that making timely payments to T-Mobile will not increase your credit score because they do not report account status on a monthly basis as credit companies do.
T-Mobile generally does not report your account delinquent right away. The company only does so if you do not pay your bill for over three months and your account gets closed and sent to collections.
Everyone over the age of 18 has a credit history and score in the US. Credit history is tied to your social security number. Your credit score is determined by multiple factors such as:
- Your payment history and whether or not you pay your bills by the due date or you have late payments.
- Length of credit or simply how long you had your oldest credit card, and the average age of all your credit cards combined.
- Types of credit you have such as mortgages, auto and motorcycle loans, student loans, credit cards, personal loan, etc.
- Debt-to-credit ratio or how much you have borrowed compared to how much credit is available to you. Creditors expect you to use less than 30% of your total available credit.
- Inquiries which is the number of times you have applied for new credit contracts in the last two years.
According to a recent FICO report, 68 million Americans have bad credit. Experian says that 21% of Americans have really, really bad credit.
- Excellent: 781-850
- Good: 661-780
- Acceptable: 601-660
- Poor: 501-600
- Bad or Subprime: 300-500
You can obtain a free copy of your credit report once per year from annualcreditreport.com by federal law. It is a good idea to check your credit regularly to make sure it does not have any errors. If you do find an error on your credit report, you can dispute it.
What is Bad Credit?
Bad credit is typically below 625 as you will have a hard time getting a loan. For example, you may require a credit score of 680 or more to apply for an FHA mortgage.
Any delinquent accounts which are in collection status are horrible for your credit. Collection accounts weigh heavily on your credit score and should be resolved as soon as possible. Once you pay off or settle the delinquent balance, the collection account will still show up on your credit history and report but will show as paid or settled.
Debt Collectors generally work for a Collection Agency or directly for the company with which you had an account. The Fair Debt Collections Practices Act is a federal law that governs what debt collectors can and can not do in the United States.
What Is Good Credit?
Regardless of a credit score, good credit is:
- No late payments or delinquent accounts in the last seven years.
- No collections from IRS, Child Support or any other government agencies.
- No more than 30% used of your total credit cards available balance.
- Average age of your credit cards is eight years or more.
What Credit Bureau Does T-Mobile Use?
T-Mobile usually uses either Equifax or TransUnion, but the company is not limited to only using Equifax. T-Mobile does not disclose which credit bureaus they use but the most popular are Equifax, Experian, TransUnion and Innovis.
A Reddit post from three years ago mentions that when applying for a line with a frozen credit report, the agent had the caller only unfreeze TransUnion. However, a different writer says that T-Mobile appeared on all three of their credit reports.
Below are the major credit bureau agencies for US cell phone providers:
- AT&T – Equifax
- Sprint – Equifax and Experian
- T-Mobile – Equifax and TransUnions
- Verizon Mobile – Equifax
Depending on your situation, your credit score can vary widely between the different credit bureaus. However, in the long run, as information gets updated the score will even out.
How To Remove T-Mobile Collection From Credit Report?
For T-Mobile to legally report your account delinquent your payment must be more than 60 days late. This means that you have to miss two (2) payments for T-Mobile to report your account as delinquent to the credit bureaus.
Once an account has been reported as delinquent it is very difficult to get it removed from your credit history.
Start by calling T-Mobile Collection Agency (855-577-2276) to make a payment and bring your account to “current” status. You can try negotiating with the representative to remove the delinquent reporting from your credit report. If the representative refuses, you could try speaking to their manager. Make sure to look at your phone statements to verify that you were in fact 60 days delinquent. If for some reason, T-Mobile reported your account delinquent prior to the 60 days, the company has done that illegally and has to remove it from your credit report.
If you were unable to get the representative to remove the delinquent status from your report, you can attempt contacting the credit bureaus directly.
Regardless, you need to pay off the outstanding balance as fast as possible. Because the longer T-Mobile reports the account as delinquent the worst your credit score will drop. There are two statuses for delinquent accounts: currently delinquent and previous late payment.
To avoid being delinquent on your T-Mobile account in the future set up automatic payments. You can ask the representative to set up the automatic payment in exchange for refunding you any late fees you may have incurred.
If you are successful in getting the T-Mobile representative in removing the late payment from your account, your score could improve by as much as 30 points or more.
Does T-Mobile report to credit bureaus?
Yes, but only if your payment is late and you are delinquent and sent to collections. Otherwise, T-Mobile does not report to the credit bureaus regularly
Is T-Mobile credit check a hard or a soft pull?
It depends. When you are first opening the account and requesting basically a credit line for monthly usage charges, T-Mobile is very likely to do a hard pull on your credit.
However, if for any reason T-Mobile checks your credit without your authorization, they will use a soft pull.
What is Hard vs Soft Pull?
A hard pull is when you are actively applying for credit. Hard pulls happen when you apply for a new credit card, auto loan, home mortgage or open a new contract/account with a mobile phone carrier.
On the other hand, a soft pull is when a creditor checks your credit in the background without you asking for a new account. These types of soft pulls happen with some banks on a yearly basis to make sure your credit has not become worse or when you check your own credit.
A pull is often called hard inquiry vs soft inquiry.
Does T-Mobile offer a plan for bad or poor credit?
Yes, most mobile phone providers offer alternative options for consumers with bad or poor credit.
Generally, you can either get a prepaid plan, put a security deposit for their services or use a co-signer.
However, pre-paid plans are usually not as economical as regular good credit plans.
Another option may be to get on someone else’s family plan.
Is T-Mobile Collection Agency a real company or a scam?
No, it is not a scam. T-Mobile Collection Agency is responsible for collecting unpaid bills from consumers. The majority of T-Mobile’s customer service agents are located in Puerto Rico.
Do mobile phone payments help to build credit or improve your score?
No, mobile carriers do not report your account status monthly, therefore they do not help to build credit.
Why does T-Mobile check my credit?
There are two reasons why T-Mobile checks your credit report.
First, when you purchase a new phone from T-Mobile and have the cell phone payments broken up into monthly payments. You are effectively taking credit from T-Mobile who will pay for the phone in full, and collect monthly installments on your loan until you pay off your new phone.
Secondly, on post-paid plans, T-Mobile does not charge you until the end of the month. The company is extending you credit for the month of usage on your cell phone plan.
While mobile phone carriers no longer have mobile phone contracts, instead they lock you in by loaning you the money for your new mobile phone.