A good credit history?

[Pansori]

My SO moved to a new state this summer to start his PhD program. I am very proud of him . Before he moved we pulled his credit report. His TU was 748 and Experian was a few points within that. It said his credit score was considered very good, or something like that. Makes sense. He is diligent with his credit cards.

Now my SO is a little frugal. Maybe to a fault. He chose the cheapest, craptastic neighborhood to live in for the first quarter, and these awful apartments charge everything and do not include internet. So he calls this company to get internet hooked up.

They had to run a credit check and the CSR came back and said that they have to charge additional fees because his credit history is so bad. My SO is not the type to argue (plus he is really needing internet) so he just said "OK" went on his way and told me later. I, however, was shocked!! I don't understand, I feel like this company is ripping him off. Albeit he only has 2 credits cards and a limited history, but does that constitute BAD credit? He has never even paid a dime in interest, much less been late.

Is his credit considered bad because it is so new and limited? Obviously his score is good, but I know there is a lot more to credit than just Fico. Other than the 2 cards (his oldest one being 4 years old) he has two student loans that are deferred right now.

I'm not even sure it is all worth it. I'm moving to be with him in December, and we're getting a totally different place together (hopefully one that already covers internet).

[disneysteve]

The length of the credit history is one factor they look at so that could be the issue. That said, if they are using his credit report against him, he is entitled to an explanation. He should call and ask them to explain what aspect of his credit report put him in the high risk category.

[Joan.of.the.Arch]

Are any of those additional fees refundable or applicable to the bill after a period of on time payments?

It is possible he is being red-lined. Red-lining (as though a red line was drawn around an area of a map) is economic discrimination based on where one lives, possibly the zip code. It might not be his credit at all, but the companies' presumption that people in his area just don't pay their bills.

[disneysteve]

It is possible he is being red-lined. Red-lining (as though a red line was drawn around an area of a map) is economic discrimination based on where one lives, possibly the zip code. It might not be his credit at all, but the companies' presumption that people in his area just don't pay their bills.

Very good question. That was in the news a couple years ago when people were having their CC rates raised because they shopped at WalMart or in not so nice neighborhoods. I remember the uproar that caused (especially since I shop at WalMart and work in a not so nice neighborhood ).

[Nightfly]

Let me guess: AT&T? I won't do business with them because of their practice on pulling credit reports; and my history is decent (though not as good as your SO's). Go with another provider if possible. Don't forget: McD's, Starbuck's, and Panera all have free Wi-Fi, but you probably already knew that....just something to think about...

[JoshuaHeckathorn]

The first thing you should do is check his credit reports to make sure nothing strange has popped on there since the last time you reviewed it. Based upon what you've shared, there's really no reason to believe his credit would be considered "Bad" in any way.

I agree with Steve that you should give the company a call as well to determine exactly what it is that's wrong with his credit. He deserves a clear explanation- a lot of these companies try to tack on as many fees as possible, especially when you first sign up for an account. If you push back, the CSR will often waive them as fast as they tried to tack them on.

[naomibatac]

Yes, check with the company to know the details. Sometimes, there are cases where identity theft plays a great role in ruining peoples financial standing.

[MonkeyMama]

May be a little late, but that sounds to me like a huge red flag - could be identity theft, or errors on the credit report. Either way - you'd want to know what is going on and get it fixed if need be.

[ckepley]

credit fraud and clearing red flags

I just checked my credit score and had a free report pulled. With your free report in the very back is attached public information of your creditors such as phone numbers. I usually call them and ask questions if I don't understand why I have a certain balance or if something is off and doesn't match my records. If something is off there are letter templates you can get online for just about every situation that occurs on your credit report. Send in the letter to all 3 creditors and demand it is cleared off your report. It is a long fight sometimes with the creditors but if you can prove the debt is not yours or fraudulent activity was made on your card then the credit agencies have 30 days to clear the red flags or u can look into a law suit.