If you are looking to buy a new phone, you may be wondering does Freedom Mobile do credit checks.
Credit checking is a practice embraced by most mobile services brands. If you want to get a good phone on credit, you will most likely be subjected to credit checks.
The leading carriers including TELUS and Rogers carry out checks.
Freedom Mobile does credit checks for anyone who wants a device on postpaid terms.
What this means is that you must pass their credit requirements to get advice.
If your score is poor, you have to pay a hefty upfront deposit for a phone compared to someone with a good score.
Technically, you do not have to be subjected to credit checks to buy a phone. However, if you want a postpaid plan, that is the route to go.
Read further to learn more about what Freedom Mobile credit checks entail.
Why Does Freedom Mobile Do Credit Checks?
The first question we should answer is why does Freedom Mobile require a credit check?
The reasons why Freedom Mobile checks for your credit are similar to those offered by other credit bureaus.
The main reasons why Freedom Mobile checks for credit
- To ascertain that you have the ability to repay your phone bill
- To ascertain your identity and location
- To determine the level of credit that fits your budget
- To determine your ideal monthly installments
Ideally, the credit checks carried out by Freedom Mobile are for your benefit. The brand tries to ensure that you get a credit that is best suited for your income.
What Exactly Does Freedom Mobile Credit Check?
You may be wondering how do Freedom Mobile do their credit check? Knowing the factors that they look for in your credit file will help you prepare better.
It is important to mention that they request your information from the credit bureau. They will have access to almost all your financial information.
Apart from credit bureau file review, they will also request more information from other financial institutions.
Factors That Freedom Mobile Check
The key factors that Freedom Mobile has to check are as follows
All Pending and Settled Loans
The first factor that the carrier looks at is your pending loans and their repayment status.
This kind of data is primarily obtained from the credit bureau and financial institutions.
This information is used to determine whether you are willing to pay your current loans. The information also helps the carrier determine your limit.
Reports From Other Institutions You have Borrowed From
The second most important information that the carrier looks at is the reports from other institutions where you borrowed.
Institutions that lend finances file all details about your repayment practices. This information is used to determine a credit score.
Your Loan Repayment Habits
One of the most important factors that account for your credit score is loan repayment habits. Freedom Mobile credit check experts focus largely on your loan repayment.
They look at all the loans you have taken before and the trends you followed in paying them.
You are more likely to qualify for Freedom Mobile devices if:
- You repay your loans within the stipulated time frame
- You have never defaulted on any loan facility
- You have never renegotiated your loan repayment terms
Tip: Freedom Mobile will base its assessment on your income and loan repayment history. Clearing any overdue loans in advance may help you secure a good score.
Verification of Your Identity and Address
The other important factor that Freedom Mobile checks look for is your identity. One of the major concerns when getting credit is identity theft.
It is important that the loan lender does not issue a credit to anybody who does not have the right identification documents.
To verify your identity, you must provide your verification details. Among the details that the carrier looks at include your driver’s license, your billing address, and tax details.
If you recently changed residence, you may be asked to verify such claims.
Note: Identity verification is done to protect you from any person intending to steal your identity to get a Freedom Mobile device.
Your Income Streams and Ability to Pay Your Loans
Lastly, Freedom Mobile looks at your income streams. This is the only way for the carrier to determine if you are in a position to repay your loan.
Your income streams may include your salary and earnings from businesses and side hustles.
Factors that matter when considering your income:
✅ Consistency-While you may have a good income if it is not consistent it may affect your ability to get credit.
✅ Your debt level in relation to income- You may have a good income but also have heavy debts. Even if you have a good income, your income-to-debt ratio counts highly.
✅ Diversity of income– The more diverse your sources of income the better.
Note: Freedom Mobile does not contact your employer or look for the details of how you use your income. However, some minor background checks are carried out.
What Is a Good Credit Score at Freedom Mobile?
The main concern that most people have is whether they have a good credit score or not. For most Canadian credit review institutions, a good credit score starts from 660.
The factors that most credit review institutions look at are similar. If your score from one institution is good, you may as well have a good score from Freedom Mobile.
If your Score ranges anywhere from 600 to 700, you will be more likely to get a good credit score.
Can I Get a Freedom Mobile Plan With a Bad Credit Score?
If you happen to have a bad credit score, do not despair. There are still a few ways you can explore.
Unfortunately, you may not be able to get a good plan directly.
Below are some ways to get a phone without a good plan.
Get a Prepaid Plan
Instead of going for a regular postpaid plan, opt for a prepaid plan. There are many good phones you can get on a prepaid plan.
In fact, all the best phones on the market are available on good prepaid plans.
The benefits of prepaid plans are:
- You only get services after paying for your plan. In this case, you will never have to default payment.
- Prepaid devices do not undergo credit checks as is the case with postpaid ones.
- Even if your credit has hit rock bottom, you may still qualify for a device.
Note: While there are no credit checks for most prepaid plans, there are still qualification measures to be attained.
You must meet certain security levels to get a device from Freedom Mobile.
Opt for a Buy Now and Pay Later Plan
If you do not want to get a device from a carrier, you may also opt to go for the buy now pay later option.
What most people do not know is that there are very many credit options for phones.
You do not have to rely on mobile networks to get a good phone on credit.
Does Freedom Mobile Report to Credit Bureaus?
One of the main concerns you may have is whether cell phone credit is reported to credit bureaus.
Well, while cell phone plans act as normal credit, they are not reported to credit bureaus.
With that said, all cell phone providers maintain your credit file. If the credit bureau wants to access such a file, it can be given access at any time.
To answer the question, does Freedom Mobile do credit checks, simply look at the factors above.
You must be subjected to credit checks for any loan facility from mobile phone providers. Without a good score, you may want to consider other options.
Kevin has over five years of experience working in various Tech startups and providing Technical solutions. He has contributed to many Tech publications and websites.