Getting a contract cell phone plan without an SSN and credit history

[simonschus 58]

I'm considering phone options when moving over to the US on a K1. I know that there are a fair few prepaid plans available and I can research those.

However, would I have any trouble getting a pay monthly contract plan without an SSN or credit history? As I have no credit history, I'd be happy to leave a deposit. My view is that having a pay monthly contract would help to develop my credit history more than a prepaid plan.

Any issues I have to consider? I would bring my own phone over to the US so I wouldn't need to include a phone with my cell plan - I'd just plug the sim card that the carrier gives me into my existing phone.

Simon

P.S. Feel free to move if you think this is placed better elsewhere. The focus of my question was on the impact of a lack of SSN and credit history so it seems suitable here.

[Lemonslice 4,922]

Never gave my SSN to any business - so that is feasible. However, note that many providers will not report your contract/payment to a credit agency, so it might not be the best way to build credit. See https://www.reddit.com/r/personalfinance/wiki/credit_building for an overview on how to get started.

[simonschus 58]

Ah! Thank you - I didn't realise that many US cell providers don't report monthly to the credit agencies. My UK cell provider does and I hadn't realise that this differs.

Thank you for the link. I've already worked out my approach which is already in hand (using Global Transfer to open an account with American Express; using HSBC's similar service to open a HSBC credit card in the US too). I just thought I'd get on the cell phone bandwagon at the same time given I'd be getting one anyway, but if they only seem to report delinquency then I don't see any advantage.

Thank you again for getting back to me with this useful information and the link too. If anybody else has thoughts or wants to chime in then please do!

Simon.

Edited April 9, 2016 by simonschus

[rutabaga 209]

As you have no credit history you'll almost certainly have to leave a deposit (Verizon ran my credit report when I got a new plan with them btw). The phone service, however, almost certainly will not affect your credit (in a positive way at least) as phone companies and utilities, etc. generally do not report any positive history to your credit report (they don't really provide credit in the sense a bank does). They would, however, almost certainly report you if you're overdue enough (generally you would have to not pay for a while for that to happen though).

You might get better plan prices if your future spouse adds you to their plan than if you maintain separate phone plans so I'd look into that as well. Also, you probably won't have to leave a deposit for adding a line to an existing plan as opposed to getting a brand new plan of your own.

Finally, if you plan on bringing your UK phone, check that it's quad band (most will be nowadays, but you never know) as US cell companies use different bands that most of the rest of the world. And you'd also probably have to go with a GSM operator like AT&T or T-mobile unless your phone is also dual mode GSM & CDMA.

And a little more on getting started with US credit if you're interested:

The only surefire way to start your US credit journey is to open up a credit card (or get a personal loan from a bank, but I feel a CC is actually more likely). From my experience, Capital One, Discover, and Bank of America are generally not too averse when it comes to issuing CCs to people without a previous credit history. Be prepared to get denied a couple of times though.

Now, a good way to get a credit report even generated for the first time (even when you get a SSN, you won't automatically have a credit report) is for your future spouse to add you as an authorized user on one or more of their CCs as most will report on the authorized user's credit report as well. Now these would state that you're an authorized user and not the account owner so they're not viewed the same by bank algorithms when it comes to approving you, but what they will do for you, however, is start up your credit report and help generate a credit score for you after about six or so months of reporting which will help in pursuit of your own CCs.

I've also read that some people have managed to open an Amex CC in the US based on having an Amex back home which would be a good way to jump start your US credit history if you happen to have a UK Amex credit card. EDIT: I see you've already done that -- good job!

Finally, the myFico forums are a great resource for learning about how credit works in the US.

Edited April 9, 2016 by rutabaga

[Nich-Nick 3,354]

My husband did like you when he first got here and used his UK phone with a pay as you go SIM card. Then he switched to T-Mobile month to month. You pay a month in advance so should be no deposit. Unlimited talk/text and data. Different prices for amount of data. If you use up your data allowance, you are just dropped down to 3G or 4G (?) instead of their LTE, but not cut off data.

You are eligible to go get your SSN the week you arrive on a K1.

Edited April 9, 2016 by Nich-Nick