Do You Need a Credit Check for Internet Service?

Do You Need a Credit Check for Internet Service?

Most major ISPs require a credit check when you apply for service. Internet companies use credit checks to assess your financial reliability and determine whether you're likely to pay your monthly bills on time and return your equipment when you no longer need service.

A credit check will also help the ISP determine whether you need to make a deposit to mitigate some of the risk of nonpayment.

The type of credit check varies by provider. Some run hard credit inquiries that can temporarily lower your credit score, while others use soft credit checks that don't impact your score.

Can You Get Internet With Bad Credit?

You can still get internet service with bad credit, though you may face some additional requirements or limitations. Internet providers understand that people with poor credit still need connectivity for work, education and daily life.

Common requirements for applicants with bad credit include:

• Security deposits: You may need to pay a refundable deposit upfront, which can vary depending on the ISP.
• Prepaid plans: Some providers offer prepaid internet options that don't require credit checks.
• Limited plan options: You might have access to fewer high-speed or premium plans.
• Cosigner requirements: Some ISPs may ask for a cosigner with good credit.

So, while your credit score doesn't automatically disqualify you from getting internet service, it can impact your options and your costs.

How to Improve Your Credit Score Before Getting Internet

If you want to strengthen your credit before applying for internet service, here are some tips that can help you accomplish your goal:

• Pay your bills on time. Payment history makes up 35% of your FICO^® Score^Θ, making it the most important factor of your credit score. Set up automatic payments or reminders to avoid late fees and negative marks on your credit report. If you have past-due payments, get caught up as quickly as possible.
• Keep credit utilization low. Another major factor in your credit score is how much of the available credit you're using on your credit cards—this is called your credit card utilization rate. Lower utilization rates demonstrate responsible credit management and can quickly improve your score. Make it a priority to pay down your credit card balances, with a goal utilization of under 10%.
• Check your credit reports for inaccuracies. If you find anything amiss, such as incorrectly reported payment histories or accounts that don't belong to you, you have the right to file a dispute with the credit bureaus. You can start reviewing your Experian report for free, and you can also get free weekly reports from all three bureaus (Experian, TransUnion and Equifax) through AnnualCreditReport.com.
• Minimize new credit applications. Multiple credit inquiries in a short period can lower your score temporarily. Focus on managing existing accounts responsibly rather than seeking new credit unless you absolutely need it.
• Consider becoming an authorized user. Ask a family member with good credit to add you as an authorized user on their credit card account. Their positive payment history may help improve your credit score.

Learn more: How to Build Credit: A Comprehensive Guide

How to Get Internet Without a Credit Check

There are several ways you can get internet service without undergoing a traditional credit check. Here are a handful of tips to help you get what you need:

• Choose no-credit-check providers. Some smaller ISPs and alternative providers may not require credit checks at all. Just keep in mind that some of these providers may not offer service in your area.
• Consider prepaid internet plans. Many providers offer prepaid options where you pay for service upfront each month. Since there's no ongoing payment obligation, credit checks aren't necessary.
• Use mobile hotspot devices. Wireless carriers often offer prepaid mobile hotspot plans that don't require credit checks. While data may be limited, these can provide temporary internet access.
• Explore satellite internet options. This option may be particularly worth considering if you live in a rural area.

The Bottom Line

Getting access to the internet can be a little more difficult if you have a less-than-stellar credit score, but it's not impossible, especially if you know where to look.

Although there may be some limitations right now, taking time to work on building your credit can make it easier for you to qualify for the internet service you want in the future. With Experian's free credit monitoring service, you can access your Experian credit report and FICO^® Score and get insights into ways to improve your score.

While improving credit can take time, establishing good credit habits can make it easier for you to achieve your goals and maintain a good credit score in the long run.