Does Signing Up for a Postpaid Plan Affect Your Credit Score?

If you’re considering a postpaid mobile plan, you might be wondering:

• Will this affect my credit score?
• Does the carrier run a credit check?
• What happens if I miss a payment?

The short answer? Yes, a postpaid plan can impact your credit history, but only in specific situations. Let’s break it down.

What is a Postpaid Plan?

A postpaid plan is a mobile service where you pay at the end of each billing cycle instead of prepaying for service. These plans often come with benefits like:

• Device financing options (paying for your phone in installments)
• Higher data allowances compared to prepaid plans
• Bundled perks (e.g., international roaming, streaming add-ons)

Since postpaid plans involve monthly bills, carriers may check your credit history before approving your application.

Does Getting a Postpaid Plan Require a Credit Check?

Yes, in most cases, major Canadian carriers (Bell, Rogers, Telus, and others) conduct a soft credit check when you sign up for a postpaid plan.

1. Soft Credit Check (No Impact on Credit Score)

• Carriers perform a soft credit inquiry to assess your financial reliability.
• This does not lower your credit score and is only visible to you.
• It helps the carrier decide if you qualify for device financing or premium plans.

Good News: Since it's a soft inquiry, it won’t hurt your credit score!

2. Missed Payments & Credit Score (Big Impact)

The real concern? Not paying your bill on time.

If you fail to pay your postpaid bill, here’s what happens:

Late Payment (0 to 30 Days Late)

• Most carriers offer a grace period, but you may get a late fee.
• No immediate impact on credit score.

Non-Payment (Over 30 Days Late)

• The carrier may report the missed payment to credit bureaus (Equifax & TransUnion).
• This lowers your credit score and remains on your credit report.

Account in Collections (90+ Days Late)

• If you ignore your bill for too long, your account may be sent to collections.
• A collections record severely damages your credit score and stays on your report for up to 6 years.

Bad Credit Consequences:

• Harder to get financing for future phones.
• Potential rejection for loans, mortgages, and credit cards.
• Higher interest rates on future credit applications.

How to Avoid This:

• Set up auto-pay to prevent missed payments.
• Monitor your usage to avoid bill surprises.
• Contact your carrier if you’re struggling with payments. Your carrier may offer an extension.

Do Prepaid Plans Affect Credit Scores?

No! Prepaid plans do not require a credit check since you pay upfront for service. If you're concerned about credit history, a prepaid or no-contract plan is a safe option.

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Postpaid Plan & Credit Score Impact: Quick Overview

Final Verdict: Will a Postpaid Plan Affect My Credit Score?

• If you pay your bill on time → No negative impact!
• If you miss payments → Your credit score can take a hit.
• If you want to avoid credit checks → Consider a prepaid or no-contract plan.

Looking for the best postpaid and prepaid plans in Canada? Compare your options on Fliq and find the perfect plan on your terms!