Content of the material
- Why Is This Collection on My Account?
- How Do I Improve My Credit?
- Why Care About Which Credit Report is Pulled?
- Why Care About Your Credit Score?
- Step 3: Reducing Your Deposit
- What If Verizon Collections Appears By Mistake?
- Verizon Collections May Have Been Hired
- Is Verizon Collections Legit or Is It a Scam?
Why Is This Collection on My Account?
Debt collections work differently than the past-due department at a company. Seeing a Verizon Collections account on your credit report means that Verizon has written you off as an uncollectible bad debt and has assigned it to a collection agency.
You won’t be working directly with Verizon on the debt any longer, but with the collection agency instead. They may be more persistent about collecting the money by calling and sending legal notices and warnings. It’s best to know your rights and what you can do about the collections account.
How Do I Improve My Credit?
The best thing you can do is spend a few months cleaning up your credit before you apply for wireless service. Start by ordering copies of your credit reports and then check for mistakes, such as accounts that don’t belong to you. Report any errors to the credit bureaus right away.
The next step is looking for red flags on your credit report, such as recently missed payments. If you have late payments on your report, you might have luck contacting your lender to request a goodwill adjustment.
Other steps you can take to improve your credit include requesting credit limit increases on your credit cards (not opening new accounts), paying down your debt to improve your debt-to-credit ratio and even adding a new type of credit to your report, such as a car loan or store credit.
Why Care About Which Credit Report is Pulled?
So, why should you care about which credit report is pulled?
You should care because the quality of your credit can affect whether you’re eligible for a phone plan.
Though each bureau uses the same source data to generate your credit report, there may be small differences between them.
One bureau might have records of applications for credit that the others don’t, which could impact your score.
By knowing which credit bureau will be used when you try to sign up for service, you can make sure that report is spotless when you do apply.
That will maximize your chances of being eligible for a phone plan.
You might be wondering:
Why Care About Your Credit Score?
So, why should you care about your credit if you can get phone service without a good score?
The main reason to be concerned about your credit is that it has a major impact on every aspect of your financial life.
It affects which loans you qualify for and how much interest you pay. Plus, as we’ve discussed, it can affect your ability to sign up for services that bill you monthly.
Having good credit makes many parts of your financial life easier, so taking care of your credit score is important.
Step 3: Reducing Your Deposit
There are two great ways to minimize or eliminate your deposit. Verizon and most other wireless carriers always have online promotions and deals that can help to offset any deposit that may be required. Many times, it’s possible to find a promotion that reduces the cost of a new phone by $100 or more.
Your deposit is also determined by the plan you choose. Choosing a more basic plan, and reducing the number of lines you request, may help to minimize the deposit you need to pay.
If you’d rather skip the credit check altogether, Verizon does have a pay-as-you-go plan available. They currently have three prepaid plans, two of which charge a daily access fee but come with unlimited mobile-to-mobile calling. When you apply refills to your account, they will expire in 30 days to one year.
The prepaid plan allows you to pay for what you use and there is absolutely no credit check or annual contract necessary for this service. You can choose from basic phones, smartphones, or tablets, and their prepaid smartphone plans include unlimited talk and text starting at $60/month.
What If Verizon Collections Appears By Mistake?
If you’ve gotten phone calls or letters from Verizon Collections and you’ve never had a Verizon account before, you could have inaccurate negative items in your credit history.
Inaccurate credit reporting happens more often than you may think. The Fair Debt Collection Practices Act gives you the right to dispute inaccurate items.
First, you should send a debt validation letter. In the letter, demand that Verizon prove you owe the money. If the company can’t document your debt, it’ll have to remove its negative information from your credit history.
After you send your letter, follow up by checking your credit reports with all three credit bureaus — TransUnion, Equifax, and Experian — to make sure the negative information has been deleted.
You can get free copies of your credit reports at annualcreditreport.com. Because of the Covid-19 pandemic, you can get a free credit report every week at this site through April of 2021.
Verizon Collections May Have Been Hired
It’s also possible you’re seeing Verizon Collections on your credit report because another service provider has hired Verizon to collect its old debt from you.
In this case, Verizon Collections would be serving as a third-party collection agency. You can still send a debt validation letter if you don’t think you owe the money.
If you do owe a past-due balance to a creditor that has hired Verizon Collections to collect your debt, you should consider a pay-for-deletion agreement. I described that process above.
In its role as a third-party debt collector, Verizon Collections should be more inclined to accept a pay-for-deletion agreement which would remove the account from your credit report.
Is Verizon Collections Legit or Is It a Scam?
Verizon Collections is a legitimate company tasked with collecting bad debt on behalf of Verizon Wireless. It’s natural to be wary — there are scammers that imitate the real collections agency to take advantage of your situation. If you notice the collections agency on your credit report, it should be taken seriously. If you’re not sure what’s on your credit report, you can check it for free here. Know your consumer rights and get everything in writing to resolve the issue.
If you need assistance in repairing your credit, legitimate credit repair companies are a helpful resource. Learn more here as our experts evaluated the 5 best credit repair companies, including pricing, transparency, and process.