Risked Based Pricing on Cellular Contracts in 2016

Risk-based pricing is coming to your cell phone! The Federal Trade Commission recently fined cell phone provider Sprint three million dollars because they failed to disclose they were using risk-based pricing with credit scores when offering cell phone service. You already know credit scores are used for mortgages, insurance and by the IRS during during an audit, along with most other loans.

Now credit scores are also used by cellphone companies. Cell phone companies could start charging more to consumers with lower credit scores than they other consumers with higher credit scores.  In the past cell phone companies used credit on strictly a accept or deny basis.

What the Federal Trade Commission found was Sprint was actually billing between seven and eight dollars more for clients with a low credit score . It is very important to make sure that your credit score is as high as it could be at all times. I did set up a free website you can go and follow my six steps to better credit score, go to GetLoanReady.com for 6 steps to actually improve your credit score, it doesn't cost anything it's just really instructions on how to change your credit behavior. I hope you take advantage of that this year.

If you want to see more videos about credit and credit scoring check these out at www.thecreditguy.tv. If  you are a mortgage lender please share this on your Facebook or LinkedIn page.   If you have any questions, leave them down below I'd be happy to answer them.