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Purchasing the new Samsung S7* payments improve credit?

revoxfire 390 126 February 21, 2016 at 09:03 PM
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Curious, would purchasing a phone on a pay by month contract improve my credit? or just paying for it flat out be better nod

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#2
"Cell phone plans aren't usually found on your credit report. [thenest.com]"

And come to think of it I've never seen one on mine either.

Really though, unless you can get a deal off MSRP to just buy it outright, the amortized payments method (e.g. ATT Next) is really just an interest free loan for the term. Check the payments - multiplied out you're just paying MSRP over 2-3 years anyway.
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#3
Do you honestly need to take out a loan for $700-$800?
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Quote from w3kn View Post :
What a shitty thread.
#4
Quote from Dr. J View Post :
"Cell phone plans aren't usually found on your credit report. [thenest.com]"

And come to think of it I've never seen one on mine either.

Really though, unless you can get a deal off MSRP to just buy it outright, the amortized payments method (e.g. ATT Next) is really just an interest free loan for the term. Check the payments - multiplied out you're just paying MSRP over 2-3 years anyway.
The problem with these new phone lease programs is that at the end of the contract, you have to return the phone back, leaving you with no options of reusing it, selling it, or just keeping it.

To the OP - I'm curious, is there a need to improve your credit score? Will you be in the market to buy a house soon?
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#5
Quote from MCeatalot View Post :
The problem with these new phone lease programs is that at the end of the contract, you have to return the phone back, leaving you with no options of reusing it, selling it, or just keeping it.

To the OP - I'm curious, is there a need to improve your credit score? Will you be in the market to buy a house soon?
not sure what program you're talking about. these are purchase contracts, 24-30 months. If you cancel service, the phone balance is due. You are free to use/sell the phone since you "bought" it
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#6
Quote from MCeatalot View Post :
The problem with these new phone lease programs is that at the end of the contract, you have to return the phone back, leaving you with no options of reusing it, selling it, or just keeping it.

To the OP - I'm curious, is there a need to improve your credit score? Will you be in the market to buy a house soon?

No.

ATT Next for example, has 3 different term options.

"Next 12" = upgradeable after 12 installment payments (return phone), 20 total installments to purchase
"Next 18" = upgradeable after 18 installment payments (return phone), 24 total installments to purchase
"Next 24" = upgradeable after 24 installment payments (return phone), 30 total installments to purchase

In each case the MSRP of the phone is simply divided by the total installment payments (e.g. 20, 24 or 30). If you want to upgrade before paying the total # of installments to purchase (e.g. 12 in the case of 20), you can but must return the phone. You can always ride out for ALL the payments and keep the phone, or just pay for it outright at any time.

This pricing is better because it's more transparent. You pay MSRP, period. No longer are phone subsidies baked into the SERVICE charge. It used to be that when you went off contract (e.g. after 2 years), there was ZERO incentive to not be on contract as the monthly payment was the same - so why not just upgrade, get a new device, and keep paying the same regardless?
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#7
Quote from Dr. J View Post :
No.

ATT Next for example, has 3 different term options.

"Next 12" = upgradeable after 12 installment payments (return phone), 20 total installments to purchase
"Next 18" = upgradeable after 18 installment payments (return phone), 24 total installments to purchase
"Next 24" = upgradeable after 24 installment payments (return phone), 30 total installments to purchase

In each case the MSRP of the phone is simply divided by the total installment payments (e.g. 20, 24 or 30). If you want to upgrade before paying the total # of installments to purchase (e.g. 12 in the case of 20), you can but must return the phone. You can always ride out for ALL the payments and keep the phone, or just pay for it outright at any time.

This pricing is better because it's more transparent. You pay MSRP, period. No longer are phone subsidies baked into the SERVICE charge. It used to be that when you went off contract (e.g. after 2 years), there was ZERO incentive to not be on contract as the monthly payment was the same - so why not just upgrade, get a new device, and keep paying the same regardless?
Gotcha. Thanks for the explanation.

Quote from stufine View Post :
not sure what program you're talking about. these are purchase contracts, 24-30 months. If you cancel service, the phone balance is due. You are free to use/sell the phone since you "bought" it
Gotcha. Thanks.
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Last edited by MCeatalot February 23, 2016 at 07:14 PM
#8
how about NOT buying a $700 phone, use the money to build your credit in other ways?



and puting $300 in a savings account and getting a secured credit card to build your credit?
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#9
Do you REALLY need a new phone? I would put $350 onto a Capital One secured card and use it for 6 months, never going over 30% credit utilization(%30 of the $350 = ~$100), and pay off in full every month.
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