It's just stupid just for a phone they will need to do that and signing a contract just for a phone.
It's not like its a car or house?
Is the OP talking about phone financing or the cell contract? The cell contract will be the same regardless of credit score, but if you finance the cell phone (which is stupid, if you can't pay for the phone get a cheap/free one) then you may pay a slightly different rate depending on your score.
Also if you get a car or house the bank may change terms slightly depending on your individual financial situation.
People can still pay things but not right away.
The only things you should ever buy on credit would be a house or a car, and even those are arguably bad ideas. You should especially not take a loan for a $300 item like a phone.
What's even more stupid is if you have very low you would have to pay more for monthy payment and that will even hurt the buyer more.
As has been said - the phone contract will be the same, but if you finance the phone your overall loan rate may be higher.
They do this because low-credit consumers are a risk to their business. It costs them more in the long run to loan out to high-risk consumers, as they are more likely to default on their payments, so of course they will have higher rates.
Simply they just should make it that you pay $300??? And then just pay the monthly service if you want it.
The phone itself is over $600. It is $300 with a cell contact because the contract is basically a loan, as has been said. With a phone contract you will cover the full cost of the phone throughout the life of the contract, whether you have it the full time or you exit early (this is what exit fees cover).
It seems to me that people are saying if you buy your own phone they don't run credit but each time I've signed something that said to get service they will run it and determine whether a deposit is needed. Same thing with some utility companies for that matter. In that case, I bought the house ... I didn't finance it through the electric company.
They don't run the credit check for the phone purchase (as the OP was alluding to) - they run it for the contract. This is why your utilities and why ISPs do it as well. They want to make sure you can pay for the contract, as that is the cash-cow for them.