Do Mobile Plans Affect Your Credit Score?

Find out if your mobile plan can impact your credit score and what plans you could get with bad credit with Savvy’s useful guide.

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, updated on October 23rd, 2023       

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Mobile plans credit score

Wondering about the impact of your mobile phone plan on your credit rating? In this Savvy guide, we’ll look at how mobile phone plans can affect your credit score and what types of mobile phone plans are available to people with bad credit. Let’s get started!

Can mobile plans affect my credit score?

Mobile plans can affect your credit score, but only if you default on your payments. When you apply for a mobile phone plan, the provider may run a credit check to assess your creditworthiness. This credit check will appear on your credit report. If you make all of your payments on time and in full, your credit score will not be affected. However, if you miss a payment or default on your account, this can negatively impact your credit score.

It is important to note that mobile phone plans are not considered traditional credit accounts. This means that they are not typically included in credit scoring calculations. However, if you have a history of late payments or defaults on your mobile phone plan, this could be seen as a red flag by lenders and could make it more difficult for you to qualify for other types of credit, such as a loan or credit card.

Can I get a mobile plan with bad credit?

It is possible to get a mobile phone plan if you have bad credit. However, you might have limited plan options, especially if you are looking for a postpaid mobile plan, which often requires credit checks.

If you are unable to get a postpaid plan due to bad credit, there are other types of plans available, namely:

  • Prepaid plans: Prepaid plans require you to pay for your mobile service upfront, meaning you don’t have to worry about monthly bills or unexpected charges.
  • Pay as you go (PAYG) plans: PAYG plans allow you to pay for your mobile service as you use it. This means that you only pay for the calls, texts and data that you use.

Both prepaid and PAYG plans can be good options for people with bad credit because they do not require a credit check.

What happens if I miss a payment on my mobile plan?

If you miss a payment on your mobile plan, the consequences will vary depending on your provider. However, in general, you can expect the following to happen:

  • A late fee: most providers charge a late fee for missed payments.
  • Service suspension: if you miss multiple payments, your provider may suspend your service. This means that you will not be able to make or receive calls, texts or data until you pay your outstanding balance.
  • Termination of service: if you do not pay your outstanding balance within a certain period of time, your provider may terminate your service. This means that you will lose your phone number and your account will be closed.

In addition to these consequences, defaulting on your mobile plan can also damage your credit score.

If you are unable to make a payment on your mobile plan, it is important to contact your provider immediately to discuss your options. Many providers are willing to work with customers who are having difficulty paying their bills.

Here are some tips for avoiding missed payments on your mobile plan:

  • Set up to ensure that your bill is paid on time each month. 
  • Create a budget that includes your monthly mobile phone bill.
  • Prioritise your bills.

Frequently asked questions about mobile plans and credit scores

How do I sign up for a mobile phone plan without a credit check?

You can easily sign up to both PAYG and prepaid mobile plans without a credit check. To do this:

  1. Choose a provider. 
  2. Purchase a SIM card. 
  3. Activate your SIM card. 
  4. Add money to your account. 
Can I keep my number if I switch from a postpaid to a prepaid mobile phone plan?

Yes – you can keep your phone number if you switch from a postpaid to a prepaid mobile phone plan. When signing up to your new plan, you can choose to keep your existing phone number and it will be transferred to your new plan. This is known as ‘porting’.    

What are the advantages of prepaid mobile plans?

There are a number of advantages to prepaid mobile plans, including:

However, it is important to note that prepaid mobile plans may have fewer features and higher prices than postpaid plans.

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Compare mobile plans with Savvy

Whether you're looking for basic prepaid mobile plan or a postpaid contract with a choice of extra features, you can compare a range of offers from leading Australian providers side by side with Savvy. Get started with a free, no-obligation quote today!


Savvy is partnered with Econnex Comparison (CIMET Sales Pty Ltd, ABN 72 620 395 726) to provide readers with a variety of mobile phone plans to compare. We do not compare all retailers in the market, or all plans offered by all retailers. Savvy earns a commission from Econnex each time a customer buys a mobile phone plan via our website. We don’t arrange for products to be purchased directly, as all purchases are conducted via Econnex.

Any advice presented above is general in nature and doesn’t consider your personal or business objectives, needs or finances. It’s always important to consider whether advice is suitable for you before purchasing a mobile phone plan. For further information on the variety of mobile phone plans compared by Econnex, or how their business works, you can visit their website.