ADT, like many other businesses, looks for trustworthy customers. They want to know, with some degree of certainty, that a customer is going to pay their bill, on time, every time. With that said, you may be wondering if ADT runs your credit when setting up an account or sends reports to the credit bureau.
ADT reports accounts to the credit bureau. Your account status with ADT could positively or negatively impact your credit report. ADT also checks your credit report when you sign up for services with them. Your credit score could determine what you will pay for services.
Knowing what gets reported to the credit bureau and how those reports impact your credit score is vital to financial health.
Does ADT Report to the Credit Bureau?
Like all businesses, when you use ADT’s services, there are fees that you will have to pay. ADT expects that their accounts will be paid and up to date. When an account falls behind or becomes delinquent, ADT reports these accounts to the credit bureau. Delinquent accounts cost companies money and show the unreliability of a borrower or customer to pay their bills.
ADT also runs a credit check on prospective account holders before services. This credit check is to determine the applicant’s credit score, as that gives a good indicator of the reliability that the account holder will keep the account current.
Your credit score could also determine how much you pay for services. Many promotions that ADT runs, such as offering services or installation and equipment at lower costs, are dependent on your credit score. The higher your score, the more likely you qualify for special promotions. A lower credit score could preclude you from promotions, as the company runs a greater risk of losing money on the account.
How Does ADT Reporting to the Credit Bureau Affect You?
ADT is a business, and all businesses aim to make money. Delinquent accounts cost businesses billions of dollars every day. That is money for services or products provided that have not been paid for. To defend against these losses, many businesses like ADT report delinquent accounts to credit monitoring agencies. Don’t worry too much, though; they also report accounts that are in good standing.
The credit bureaus keep records of all accounts that are reported to them for each individual. These accounts are categorized as in good standing or delinquent. Delinquent accounts significantly impact your credit score. Accounts in good standing positively impact your score. It is important to remember that negative impacts weigh more on a credit score than positive ones.
Ideally, you should always keep your accounts in good standing and up to date. However, things do happen. If that is the case, it is essential to get these accounts caught up as soon as possible to help your credit. When caught up, the negative impacts lessen. After a certain amount of time has passed, the negative remarks on your credit report will fall off, but until then, your score will suffer.
Remember that these are just a couple of things that impact your credit score, and you should check your credit score periodically to look for anything that should not be there. There are steps to removing incorrect data, should you find any.
How Does Your Credit Score Affect What You Pay for ADT?
Let’s be honest; most people are looking for a deal. However, a lot of people don’t realize the impact that their credit score can have on them being able to qualify for those promotions.
ADT frequently offers promotional prices for their services, but it is important to remember that not everyone qualifies for these promotions. If you have a low credit score or no credit, you will likely have to pay a higher price than what is advertised in the promotion, and there are valid reasons for this.
During promotions, you will likely pay a lower fee for services and equipment. This is because the company is, in essence, lending the equipment to you. Some even need you to qualify through a third-party lender to finance the equipment. Security equipment is expensive, and ADT and other security companies are betting on you to be able to pay your account in the long run to cover the cost.
Your credit score will determine if you are trustworthy enough be offered a deal or if you will have to pay a higher price for the services because your track record says that you may not continue to pay on time or at all (in which case, the business loses money). No company wants to lose money.
The better your credit score, the more trustworthy you seem financially to a business that will put up equipment, services, or money upfront and allow you to pay over time. You must keep your accounts in good standing and check your credit report periodically. Like most other businesses, ADT will report your accounts to the credit bureaus, which will positively or negatively affect your credit report based on where you stand on your accounts with them.