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Q: I just signed up for a new account with Verizon and they pulled my credit score - which really damaged my credit! What can I do?
A: If you signed up for an account with them, there isn’t much you can do. When you sign up for a post-paid phone contract, you give the company permission to check your credit so that they can ensure you won’t use the minutes and run.
Verizon is not the only company that does this. You can expect a hard credit pull anytime you sign up with a new phone company.
If that’s the case, accept your new credit score and move on. The few points that a credit pull drops your score aren’t anything to lose sleep over. Unless you don’t have much of a credit history to begin with, it’s unlikely to hurt your chances of qualifying for a future loan.
Besides, your credit score will bounce back within a year, which is how long credit pulls affect the equation. (Note that hard pulls will remain on your FICO credit report for two years, even though the impact on your score is for less time.)
Next time you’re thinking about switching, remember that your new carrier will probably do a credit check. If you’re hoping to buy a house soon, or applying for a credit card with a super low rate that will help your debt situation, you may want to put off switching phone companies for a little while.
Weigh the pros and cons of switching with the credit score drop, especially if your credit history only consists of one card that you got a year ago, or is equally limited.