If you are delinquent on your cell phone bill, a new cell phone contract may be restricted.
Arrears include either (or both) of the following.
1) Telephone line payments
Call charges and data charges for a phone line
2) Machine unit payments
Installment payments for the the cell phone machine (e.g., iPhone).
For each of these charges, there is an organization that manages credit information.
1) Telephone line payments
If you pay off the past-due phone line charges, you may be able to sign a new line contract. (However, some phone companies may not allow you to sign a new contract.)
2) Machine unit payments
If you are delinquent in paying installment payments for the your cell phone machine (such as an iPhone), your ability to make purchases by installment payments will be restricted until your credit information is deleted. In most cases, you will also not be approved for new credit cards or loans, even if these are separate from the phone contracts.
3) Deletion of Credit Report
Generally, credit information is retained for five years after it is paid off.
This information cannot be deleted earlier.
4) Alternative method
If you are unable to have a new cell phone contract, you will only be able to use a prepaid cell phone.
