I can't pay in installments for my smartphone!

Even if the smartphone is too expensive to buy in bulk, you can pay it in installments together with the monthly fee.

Although many people use installment payments casually, it is actually a legitimate loan contract. And did you know that in some cases, smartphone installment payments may affect other loan agreements, such as a mortgage?

This time, we will explain various risks and countermeasures that can be considered for installment payments for smartphones.

Smartphone installment payment is a loan contract with a telecommunications company

Your ability to pay is examined by a personal credit information agency (CIC)

If you apply for a smartphone installment payment at a mobile shop, The telephone company will check your credit information with the credit information agency CIC to check whether there are any problems with your ability to pay.

CIC is a credit information agency established jointly by credit companies.

are participating as members.

And credit information is personal information that records contract details and payment status for credit cards, installment sales, and other loans. This does not include information such as ideology, criminal history, or medical information.

CIC's credit information affects the approval of smartphone installment payments

If the mobile phone company determines that there is no problem with installment payments based on the credit information provided by CIC, , the installment payment is approved, and the mobile phone company will pay the customer's terminal price in advance.

The installment payment contract information will be registered as new credit information in CIC. After that, the installment payment record will be updated in CIC every month.

In this way, CIC only provides and registers credit information.

Your smartphone contract may affect your mortgage contract

The credit information accumulated through various daily consumption activities, including smartphone contracts, will be used in the future for mortgages, car loans, etc. Other large contracts may also be affected.

When examining a home loan, not only current income and asset status, but also past credit information is used as a reference. In the same way as in the case of installment payments for smartphones, mortgage companies also refer credit information to CIC. If there is a delinquency in the installment payment of the smartphone, it is possible that it will not be possible to contract the mortgage due to the effect.

Blacklist registration will not be deleted for 5 years

Once registered, blacklist registration (accident information) due to delinquency will not be deleted for about 5 years.

There are some people who think that there is nothing more serious than nonpayment of smartphone installment payments, but be careful not to be late because you may have problems later when you sign a big contract at a milestone in your life.

Payment in installments for smartphones, causes of rejection

Delinquency in payment of mobile phone bill

If you are currently behind in paying your mobile phone bill, you may have a problem with your ability to pay. It will be judged as yes and will fail the examination.

Even if you change to another company, it's the same. Since each mobile phone company shares information about the user's payment, it will be rejected due to non-payment of charges of other companies.

If you "accidentally" miss several payments, even though you actually have the ability to pay, you may be able to pass the examination in a few months if you pay properly.

However, if you continue to be in arrears for a long time and it is difficult to pay the delinquent amount immediately, it is thought that your credit information will be greatly damaged.

Delinquent Credit Cards and Other Loans

Delinquent credit cards and other loans will also be recorded on your credit report, so you will be disqualified for installment payments.

In addition to car loans, mortgages, scholarships, and utility bill delinquency records, a history of large amounts of consumer finance debt and debt consolidation can also worsen your credit score.

Similar to cell phone bills, pay off any overdue debts as soon as possible. Even if you make a payment, the delinquency record will remain for a while, but it may be easier to pass the examination than if you continue to be delinquent.

Smartphone over 100,000 yen

The severity of installment payment screening will also change depending on the amount of the smartphone. The specific standard is 100,000 yen.

The Installment Sales Act prohibits credit that exceeds the ability to pay, but as an exception, for "relatively small amounts (less than 100,000 yen) of daily necessities", installment payments exceeding the expected payable amount are used. I think we can. However, it is a condition that there is no delinquency.

In other words, If you try to purchase a smartphone that costs more than 100,000 yen, the risk of failing the examination will also increase.

No Credit History

People who have never used a credit card or paid in installments before have no credit history. In such a blank state, it is difficult to approve installment payments for high-priced smartphones because there is no basis for judging payment ability (no credit history).

It is good that there is no accident information such as past delinquency, but it may be a disadvantage that there is no history at all.

In addition, whether or not credit history is important depends on your age. The older you get, the more likely it is that you don't have a good credit history.

It will be useful when you want to make a loan in the future if you build up your repayment record steadily from as young as possible in your 20s.

What to do if you can't buy a smartphone with installment payments

Pay the delinquent fee as soon as possible

If you are behind with the fee, pay it as soon as possible . Accident information remains for about 5 years, but it does not necessarily mean that you will not pass the installment payment examination during that time.

If the smartphone costs less than 100,000 yen, it may be judged.

As mentioned above, the severity of the examination criteria varies depending on the amount of the smartphone.

Since the examination will be relaxed for daily necessities under 100,000 yen, let's choose the cheapest smartphone possible. It is best to save money and buy in bulk.

Consider debt consolidation if payments other than smartphones are difficult

If you have difficulty paying not only for smartphones but also for other living expenses, consider debt consolidation.

Debt consolidation is a procedure that allows you to reduce the amount of your debt or exempt you from repayment based on the law when your debts are inflated and it becomes difficult to pay. Debt consolidation includes voluntary consolidation and personal bankruptcy.

Although it is not prohibited by law to consolidate debts by yourself, many people ask a lawyer because it is a difficult procedure that requires specialized knowledge.

The longer the debt problem is left unattended, the worse the interest and delay damages will swell. Depending on the office, they will flexibly respond to deferred payment, so let's consult with a lawyer as soon as possible.

Summary

Depending on your current income and past history of delinquency, you may be rejected for smartphone installment screening.

Also, if the amount of the smartphone exceeds 100,000 yen, it is said that the examination will be even stricter.

If you really want to buy a smartphone, pay off any delinquent payments as soon as possible and then either pay in cash or buy a device for less than 100,000 yen. In the first place, if it is difficult to repay the arrears, please consult a lawyer near you as soon as possible.

[PR] Provided by: Agoora Co., Ltd.