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  1. Thread Author  Thread Author    #1  

    Default Verizon Credit Checks

    I am looking at switching to Verizon from Sprint but am curious as to how strict they are with credit. We went through a bankruptcy/foreclosure over a year ago. My discharge was a year old May 5th. We had excellent credit before the bankruptcy and have re-established credit after with 2 credit cards that have a perfect pay history as well as a great payment history with Sprint (and they weren't included in the BK). Does anyone know what the odds are of them approving us without a huge deposit?
  2. #2  
    Tifoso's Avatar

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    Chances are you'll get slapped with some type of security deposit. Maybe you can haggle with them on the amount. I've heard some people having to put up as much as $800.
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    I'm convinced that they have the credit department shaking magic 8 balls to give the answer (at least that's how some of my dealings with them have been) But I'll try and explain it.

    Basically when Verizon is running your credit, they are looking at both your current credit score, and also your payment history (if any) with them and with other carriers. That's why I said the 8ball thing. It's not a simple formula that I can just plug something simple in and get a number.

    I will say this though, they've made it a LOT easier recently to get set up with new contracts than it used to be, so your chances now are a lot better than they were even 8 months ago. If your payment history with Sprint is clean as well as those credit cards, I don't think you'll be hit with the maximum deposit ($400 per line).

    You CAN run your credit in advance before doing any activations if you're curious. I would do this as close to your setup date as you are comfortable with, as the applications typically only last a few days. So you can go in and run a check (make sure you tell them to run it for ALL the lines you want to set up right then) and if it comes back at an acceptable level, it will be ready for you on July 15th for the X. If not, they can cancel the app for you no hassle.

    Also, depending on the store, some of them might be willing to work with you with your deposit amount (especially if you are doing smartphones). but this is wholly up to that store and any promotions they might be running. For example, I was able to get a credit applied to a customers bill for 1/2 the deposit amount by my regional manager because they were signing up for 2 new smartphone activations. But it was a very short promotion, and it required a manual review of your credit app.

    The Deposit levels are $0, $75, $125, $250, and finally $400. This is unfortunately Per line, but the good news is that most states require Verizon to pay interest on the deposit, so after one year of on time payments you get the money back plus 3% interest, which is better than what a lot of banks are paying out right now. Another benefit is that Verizon does report your payments to all credit boroughs, so it can help your score even more.

    If you DO come back with a deposit, and it's too high for both lines, one option is to just sign up ONE line now, because after you have a payment history with verizon (typically 6 months) the deposit amount drops significantly for those additional lines.
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  4. #4  

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    Wow I am so glad we did this years ago!!! We joined 8+ yrs ago and hubby started it by himself and had no deposit and whenever we add a line we never have an issue!! Our credit is shot now but we still never have issues adding a line!! I suppose cause we have been with them for so long and always pay!!
  5. Thread Author  Thread Author    #5  

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    Quote Originally Posted by Tifoso View Post
    Chances are you'll get slapped with some type of security deposit. Maybe you can haggle with them on the amount. I've heard some people having to put up as much as $800.
    Ikes! I guess I'll give it a shot and see what happens. If it is that high, I'll just get the EVO and hope it solves my signal issues with Sprint.
  6. Thread Author  Thread Author    #6  

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    Quote Originally Posted by menno View Post
    I'm convinced that they have the credit department shaking magic 8 balls to give the answer (at least that's how some of my dealings with them have been) But I'll try and explain it.

    Basically when Verizon is running your credit, they are looking at both your current credit score, and also your payment history (if any) with them and with other carriers. That's why I said the 8ball thing. It's not a simple formula that I can just plug something simple in and get a number.

    I will say this though, they've made it a LOT easier recently to get set up with new contracts than it used to be, so your chances now are a lot better than they were even 8 months ago. If your payment history with Sprint is clean as well as those credit cards, I don't think you'll be hit with the maximum deposit ($400 per line).

    You CAN run your credit in advance before doing any activations if you're curious. I would do this as close to your setup date as you are comfortable with, as the applications typically only last a few days. So you can go in and run a check (make sure you tell them to run it for ALL the lines you want to set up right then) and if it comes back at an acceptable level, it will be ready for you on July 15th for the X. If not, they can cancel the app for you no hassle.

    Also, depending on the store, some of them might be willing to work with you with your deposit amount (especially if you are doing smartphones). but this is wholly up to that store and any promotions they might be running. For example, I was able to get a credit applied to a customers bill for 1/2 the deposit amount by my regional manager because they were signing up for 2 new smartphone activations. But it was a very short promotion, and it required a manual review of your credit app.

    The Deposit levels are $0, $75, $125, $250, and finally $400. This is unfortunately Per line, but the good news is that most states require Verizon to pay interest on the deposit, so after one year of on time payments you get the money back plus 3% interest, which is better than what a lot of banks are paying out right now. Another benefit is that Verizon does report your payments to all credit boroughs, so it can help your score even more.

    If you DO come back with a deposit, and it's too high for both lines, one option is to just sign up ONE line now, because after you have a payment history with verizon (typically 6 months) the deposit amount drops significantly for those additional lines.
    Thank you very much for that information. I am so not used to dealing with wondering "if" things will get approved. We've fought pretty hard to get back on track and I hope it pays off. Since the BK, we've paid off 2 vehicles and keep just enough credit card balance to re-establish credit. My husband works at Chrysler and was off for nearly a full year and I was pregnant on bedrest so I couldn't work plus we were paying child support for my stepson. Our mortgage company wouldn't work with us because we didn't have a sub-prime or adjustable mortgage....just a good ole fashioned 30 year fixed. It was a tough time but we are surviving.

    If I do my application on the phone, can I just put the deposit on my debit card? Or does it have to be a certified check or something? I try to do most things like this online or over the phone as I have a 3 year old and a one year old. Spending an hour at a cell phone store with these two can require lots of tequila.
  7. Thread Author  Thread Author    #7  

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    Quote Originally Posted by didiwags View Post
    Wow I am so glad we did this years ago!!! We joined 8+ yrs ago and hubby started it by himself and had no deposit and whenever we add a line we never have an issue!! Our credit is shot now but we still never have issues adding a line!! I suppose cause we have been with them for so long and always pay!!
    With Sprint, we are eligible for 5 lines and am allowed to bill phones to our account. We've been with them for 6 years and with the exception of maybe 3 months, have always paid on time.
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    Quote Originally Posted by katrina2475 View Post

    If I do my application on the phone, can I just put the deposit on my debit card? Or does it have to be a certified check or something? I try to do most things like this online or over the phone as I have a 3 year old and a one year old. Spending an hour at a cell phone store with these two can require lots of tequila.
    Yep, you can pay your deposit with Cash, Credit, or Checks/money order.

    Sorry I can't give you a better idea on what the results will be.
  9. Thread Author  Thread Author    #9  

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    Quote Originally Posted by menno View Post
    Sorry I can't give you a better idea on what the results will be.
    Don't be! You've been a great help and I really appreciate it.
  10. #10  

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    Quote Originally Posted by katrina2475 View Post
    With Sprint, we are eligible for 5 lines and am allowed to bill phones to our account. We've been with them for 6 years and with the exception of maybe 3 months, have always paid on time.
    Yeah we can do the same thing. I have billed a few phones to our account. But I get sick of Mail in rebates so I try to buy online for the instant ones now!!!
  11. Thread Author  Thread Author    #11  

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    I figured I would update and let you guys know that our service was approved with no deposit. My husband has his no-frills flip phone already and I am impatiently waiting for the Droid X. I am staying up late Wednesday to order my new toy.
  12. #12  

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    Kool Im glad everything worked out.
    Droid Incredible: Canceled
    X Ordered: 7/6
    Promised: 7/16
    Delivered: 7/16

    Set up multiple Gmail accounts on your Droid X
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    Quote Originally Posted by katrina2475 View Post
    With Sprint, we are eligible for 5 lines and am allowed to bill phones to our account. We've been with them for 6 years and with the exception of maybe 3 months, have always paid on time.
    I know its a little after the fact but carriers do not report on time payment to credit agencies. They will however report nonpayment if it goes to collections.
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    Quote Originally Posted by katrina2475 View Post
    ...service was approved with no deposit.

    Grats! I'm hoping our port over from ATT is accepted too (applied last Tuesday).
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    Quote Originally Posted by Giblet View Post
    I know its a little after the fact but carriers do not report on time payment to credit agencies. They will however report nonpayment if it goes to collections.
    Verizon actually started reporting on time payments. They stopped for awhile, but here's the article I first found about it:

    Verizon's 'free gift' to customers: Giving payment data to credit bureaus - The Boston Globe

    If they stopped again, I apologize for the confusion.
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