$600 is the minimum they need to charge to cover potential loss of someone skipping on first month plus the $450 subsidy on say an iphone 5.
Why are you complaining when the math is obvious? They could potentially lose much more
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Why does AT&T charge $600 just for a deposit ?
- Thread starter DBZmusicboy01
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$600 is the minimum they need to charge to cover potential loss of someone skipping on first month plus the $450 subsidy on say an iphone 5.
Why are you complaining when the math is obvious? They could potentially lose much more
You should see all the Asians at the AT&T store on campus at the beginning of the year throwing $600 deposits like it's nothing.
I don't know where you get the idea that someone with numerous accounts at their limit would have a higher score than someone with zero balances and paid mortgages - and to say that people with zero debt and paid off mortgages saw their scores fall is ludicrous. FICO scores are based on usage - if you are over 80% of available credit (as an example) - meaning you owe 8,000 on a 10,000 card, your score is substantially lower than the same borrower with a 4,000 balance. People with little debt did better (if they could hold on to their jobs) than those living on the edge - because when the music stopped - they fell off the edge.
I think it's funny for att or any company to charge more than $250 for a desposit.
The US govt will give up potentially up to a $729k housing loan with as little as 3.5 downpayment or even still 0% down if doing a VA housing loan. And they have low credit requirements. It used to be given to people with credit scores in the 500s. And even with the housing crash, you can still get hundreds of thousands in loans with a credit score in the low 600s.
$600-700 is a ridiculous amount of money for a desposit considering ur monthly bill probably won't be more than $100-125 a month with one line.
Landlords usually don't charge more than one months desposit on their homes.
The US govt will give up potentially up to a $729k housing loan with as little as 3.5 downpayment or even still 0% down if doing a VA housing loan. And they have low credit requirements. It used to be given to people with credit scores in the 500s. And even with the housing crash, you can still get hundreds of thousands in loans with a credit score in the low 600s.
$600-700 is a ridiculous amount of money for a desposit considering ur monthly bill probably won't be more than $100-125 a month with one line.
Landlords usually don't charge more than one months desposit on their homes.
That statement is exactly the cause of the housing crisis, but I understand what you're saying.
I never used the statement numerous accounts at their "limit". When I buy my credit score and go through the reasons for not getting a higher score, these are the statements from my Equifax credit score explanation under "Key factors affecting your credit score":
"There is insufficient information, or no account history, for mortgage accounts".
"Lenders usually take a positive view of individuals with a range of credit accounts - car loan, credit cards, mortgage, etc. - that have a
record of timely payments."
I paid off my mortgage in a short time and never had a car loan, preferring to by with own funds.
Higher household income families tend to have a higher outstanding balance each month (even if its paid off in full each cylce) and again credit scoring system which does not consider income and assets dings the credit score for having large revolving line balances than the average US consumer.
Until the system distinguishes someone using a credit card for convinience with no carried balance and some one juggling balances and is one paycheck from default, the US credit scoring system is guaranteed to have surprises when a recession takes place.
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95% of US home loans are backed by FHA/Fannie Mae government companies. Additionally, if one does not pay back as agreed, the house can be foreclosed. AT&T on the other hand will have to spend more to collect the unpaid AT&T account and recover the iPhone. So they ask for a good deposit. If the tax payer backstop for mortgages stop, you will see many of the people getting home loans at 30 year low mortgage rates would not be able to do so unless they put substantial cash down.
The feds and the federal government juices the housing market to create jobs. In the long term that leads to mis-allocation of capital.
"There is insufficient information, or no account history, for mortgage accounts".
"Lenders usually take a positive view of individuals with a range of credit accounts - car loan, credit cards, mortgage, etc. - that have a
record of timely payments."
I paid off my mortgage in a short time and never had a car loan, preferring to by with own funds.
Higher household income families tend to have a higher outstanding balance each month (even if its paid off in full each cylce) and again credit scoring system which does not consider income and assets dings the credit score for having large revolving line balances than the average US consumer.
Until the system distinguishes someone using a credit card for convinience with no carried balance and some one juggling balances and is one paycheck from default, the US credit scoring system is guaranteed to have surprises when a recession takes place.
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95% of US home loans are backed by FHA/Fannie Mae government companies. Additionally, if one does not pay back as agreed, the house can be foreclosed. AT&T on the other hand will have to spend more to collect the unpaid AT&T account and recover the iPhone. So they ask for a good deposit. If the tax payer backstop for mortgages stop, you will see many of the people getting home loans at 30 year low mortgage rates would not be able to do so unless they put substantial cash down.
The feds and the federal government juices the housing market to create jobs. In the long term that leads to mis-allocation of capital.
It has been my experience that a lot of the 'reasons' displayed on an Equifax or Transunion had no basis on reality - they appear on 800 FICO's
If your credit report stated that there was little to no mortgage payment history - I would ask how quickly did you pay? Less than a year? You can have an 800 (extremely high) FICO score with as few as 3 trade lines. (accounts showing payment activity)
As for FHA/VA and Fannie & Freddie - they are different birds - The big trouble came from the loans that couldn't be sold to Fannie and Freddie - the ones where if a borrower could fog a mirror, he got a loan.
All this was done without the Gov't backstop - Until the idea of MBS came around - FHA had it's place and was a good investment - And a Freddie/Fannie loan required 20% down.
It's a tangled web - but it was the banks - playing both sides of the risk game with all of us left holding the bag.
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...also , you may not have said the words 'at the limit' but when someone us up to his eyeballs in debt and is one payment from oblivion - that sounds to me like they are at the limit.
Just get you a Tracfone, no deposit needed and more then likely you will still be with AT&T. I keep a couple of Tracfone's on and just used them for beaters like when doing yard work or something that you do not want to subject your shiny new iPhone to. 
Things that suck about this logic is people who are just starting out on their credit and have never missed a payment still having to put a $600 deposit for a phone. Like oh hey I'm going to go for the two year contract because I don't want to hand over $900 right away. I could afford to pay it I just don't feel it's right. A year to get it back is a really long time to wait. Six month I could deal with if its garenteed to be returned. I have no idea what my credit score is right now
Though. I use my visa all the time and I have never been late To Pay it off.
Holy thread necrosis, Batman!
That said, I find AT&T to be quite lax when it comes to requiring deposits. When we immigrated, they didn't ask me for a deposit when I opened an account. I think at the time, we've only been in the US for ~1 year and I only had one secured credit card for ~6 months (with good payment history) - no other loans. I think you probably need to have absolutely no credit history or a fairly bad credit history for carriers to ask for a deposit.
will AT&T needed $750 for my deposit and so i said heck went over too verizon wish is way better for this area any ways and olny had too pay 400 for a deposit so may be verizon may be a better chose for you
It has to be a problem with your credit. There are consequences for bad credit.
When I opened my AT&T account it was with 7 phones and there was no deposit, just a smile of the reps face!
Given the push for ATT Next and VZW Edge financing, it's more like downpayment nowadays rather than deposit.
I think the problem is the same people who are complaining about being required to pay high deposits on the latest and greatest "$200-300" iPhone are the same folks who can't afford to pay retail $650-750 cash for one. Unfortunately, they also seem to want just the brand new latest model instead of settling for a well maintained used iPhone from CL/ebay/swappa or even a brand new less expensive Android smartphone.
Another issue with needing financing or subsidy to be able to afford $600+ flagship phones is you're then stuck with an expensive monthly bill. Meanwhile, if you just pay cash for your phone, you can go with a prepaid carrier such as Cricket, Republic, Ting or Virgin and be paying $35/mo or less for service.
I got my first att/Cingular contract at 18 with only 3 months of credit history with no deposit. Makes you wonder how bad some of these peoples credit scores are if they are having to dump $600 on a deposit.
Nowadays I just pay full retail and use prepaid.
Nowadays I just pay full retail and use prepaid.
I have the same thing with Verizon. But mine is $750. The girl that ran my credit was just flabbergasted. She had never seen that before. And NO that is the security deposit and not linked to buying the phone. You have to pay the deposit AND pay for the device. This is the ONLY reason I'm with T-mobile cause they're the only service provider that doesn't require a massive deposit. Also don't get that deposit twisted. My credit score is in 700's and still can't get service with AT&T and Verizon.
If it's that much, why not just buy the phone? And what's the issue if the credit score is in 700s? There's got to be more to it.
That seems unusual. I was 20 when I signed up for service and had only 6 months of credit history so my score was probably just in the 600s or something and AT&T didn't require me to put down a deposit. Maybe she keyed in the wrong SS#.
I ended up going to T-Mobile and was able to get service with no deposit. I've looked into my credit score and there is nothing wrong. Also having them check your score over and over again is not a good idea as that goes on the record. The more you have them check it shows up. I watched her key in the SS# slowly and she entered it right. Also for the first question that's my point. I'm not gonna pay that amount of money knowing that I could just buy it from Apple.com unlocked. Which is why I went to T-Mobile.
As others have said, bad or no credit you are a risk.
Have you tried to contact any of those credit counseling places?