The Verizon Plan: Know The Credit Requirements and Fees Before You Sign Up This 2022

The Verizon Plan: Know the Credit Requirements and Fees Before You Sign Up This [year]! The Verizon Plan, a direct successor of the Verizon Edge plan, offers its customers a simple solution. (Shop Verizon here!)

Verizon no longer offers plans that require you to pay $200 down on a phone, while paying the rest of the subsidized cost back over the term of your contract. 

In this blog, we’ll teach you how the Verizon Plan works, so that you’ll understand Verizon credit requirements and fees before you sign up.

How Verizon Plan Works

 Introduced in 2015, the Verizon Plan simplified phone purchase pricing and wireless plan options. (Read the Verizon Plan FAQs here.)

Here are the basics of how it works:

  • ​No upgrade or activation fees
  • Pay the full retail price of your phone upfront or in 24 monthly installments
  • $0 down on a smartphone for eligible customers (based on a credit check)
  • All plans include unlimited talk and text
  • You select only the amount of data you need each month
  • You pay an access fee for each device

Buying Your Phone

When you sign up with Verizon, you can either pay for the entire cost of the phone immediately or choose to pay for the phone in 24 monthly installments. Regardless of your payment preference, your 2-year cost of ownership will be the same. If you do choose to pay in installments, you’ll be required to enter a 2-year contract with Verizon. The monthly payments will depend on the cost of the phone, and this amount is combined with the amount of your plan to create your monthly bill.

 

Early Upgrades with Verizon

Verizon provides two ways to upgrade your phone.

First option, make 12 payments under your installment plan and then trade in your phone for an upgrade.

Second option, pay the full price upfront, re-sell your phone when you want to upgrade and then buy a new phone.

Verizon’s upgrade program is the most expensive of those offered by the major wireless carriers.​ Because other carriers essentially give a discount to lease a phone and  Verizon does not.

Most Verizon customers will most likely opt to stick with their phone for at least 2 years.

Wireless Data Plans

As we mentioned earlier, all plans include unlimited talk and text; however, you need to decide how much monthly data you will need.

Verizon does suggest the size of the data plan, which is based on the number of connected devices and the user’s monthly usage requirements.

On top of your monthly data cost and device payment, you’ll also need to pay a monthly access fee for each connected device.

Monthly Access Fees

Verizon monthly fees can be costly. Current monthly access charges are as follows:

  • ​$20 per smartphone
  • $10 per tablet or hotspot
  • $5 for all other connected devices

Also,  the first phone on the plan must pay the $20 monthly access fee.

Need More Data?

If you require more data than available under the small, medium, large, and x-large Verizon plans, you can buy an unlimited plan: Click here.

Cloud Storage

The Verizon plan comes with 5 GB of complimentary cloud storage. If you find that you end up requiring more, you will be able to upgrade this at any time.​

Data Plan Costs

​Below are the data plan costs for 3GB and the shared 12GB data plans. Whether you purchase an iPhone, Samsung Galaxy or other smartphone, the costs will be similar; however, for this blog we cover the costs of data using a 16GB iPhone.

As stated above, the total two-year costs will be the same whether you pay in installments or pay the full purchase price upfront. 

Individual 3 GB Data Plan*

  • ​Phone: $27.08/month
  • Access Fee: $20/month
  • 3 GB Data: $45/Month
  • Monthly Total: $92
  • 2 Year Total: $2,210

Family 12 GB Data Plan*

  • ​2 Phones: $54.16/month
  • Access Fee: $40/month
  • 12 GB Data: $80/month
  • Monthly Total: $174
  • 2 Year Total: $4,180

* Totals are rounded for convenience.

Verizon  charges a premium to use their top-rated network and 4G LTE speeds, but you will also own your phone, and can re-sell it after 2 years.

If you decide to trade in your phone and upgrade after 12 months, your 2-year cost of ownership will be the same as shown (assuming the new phone has the same price). But you’ll incur sales tax again and you’ll not be able to re-sell your phone.​

You can also check out this article to see how the cost of ownership with Verizon compares with other providers.

Credit Requirements and Eligibility

Verizon Wireless has strict credit check requirements. Verizon  checks the level of debt you are currently managing, charged-off/collections accounts, payment history and the limits on your credit accounts. If your credit score is lower than 650, you may have trouble getting approved or required to pay a large deposit.

Click Here to Find What Deposits People Like You Are Paying Verizon.

Verizon prepaid plans are great options for individuals with bad credit or prefer cheaper no-contract plans. You can read our review of Verizon Allset Prepaid Plans here.

Finding Verizon Deals

If these plans look expensive, but you want to join the Verizon network, my suggestion to keep you eye out for a deal.

 

Check out the latest deals from Verizon:Verizon Wireless Credit Check

Save $20 on select prepaid phones. Offer valid thru 6/30/18

Get this Deal

Prepaid iPhone SE just $159.99, Plus waived activation! Offer valid thru 6/30/18

Get this Deal

Get Prepaid, starting at just $30 a month! Plus, waived activation. Offer valid thru 6/30/18

Get this Deal

A smarter way to prepaid starting at $40/month. No contracts,

Get this Deal

Get 1GB of Bonus Data Every Month when you sign up for a smartphone prepaid plan with Autopay.

Get this Deal

The Bottom Line

Now that you are armed with an understanding of how the new Verizon Plan works, and you know all the associated fees and credit requirements, let’s outline the major pros and cons:

 

Pros:

  • Straightforward pricing
  • Verizon’s top-ranked network
  • You can re-sell your phone after 24 months because you own it

 

Cons:

  • Early upgrade option is expensive
  • Plans are expensive

The bottom line is that Verizon plans are expensive, but a lot of that expense is offset because you sell your phone after 2 years. (Leasing and early upgrade plans usually require you to turn in your handset to upgrade early.)

However, if you love the fast and reliable Verizon network, Verizon remains the way to go.

Credit Shout is a community of personal finance experts dedicated to helping you save money and make smart financial decisions. Learn how to master your credit card rewards, improve your credit score and start eliminating your debt.