$500 deposit for an iPhone?!!

M

mecca

Limp Gawd
Joined
Mar 15, 2003
Messages
240
What gives here?

I really cannot believe that not having a credit card is that terrible that I can't even buy a phone without forking over FIVE HUNDRED DOLLARS. I pay an exorbitant rent each month, perfectly on time for years, I make decent money, but I handle my money exactly the way I've wanted to and always use a debit card. I just never felt the need to have a credit card..

Yet AT&T wants me to pay five hundred bucks because of this? What the hell is that money even covering? So not only would it cost $99 + $36 registration fee PLUS 2 months bill in the first month alone.. but I'd have to ADD a completely arbitrary number of $500 dollars to all of that, that I'll never ever see again??

So, I'm basically screwed, is that it? I'm basically forced to now buy a credit card, and even then, I need to wait months of building my credit in some bullshit way like paying off $20 gas bills before I'm even "allowed" to buy an iPhone like a normal human being?

Laughably, I found this all out after spending 30 minutes in the Apple store waiting for an employee to return and help me.
 
hmm... did they say the $500 was for the iPhone, or the $500 was the deposit for the AT&T account?

my friend just moved to the US, no credit rating, was forced to put a $500 deposit for an AT&T line, regular samsung phone...

you could escalate it above the sales clerk. They might waive the deposit if you show your 'credit' rating through paid utility bills/apartment lease

and if either's the case, you might be better off finding a used iPhone 2G/3G, getting a prepaid AT&T plan
 
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Welcome to the real world.
Having a credit history, and a good credit score, is very useful. I picked up a $500 bank student card when I was going off to college, just to throw some gas bills on, and pay off, and let sit there. Still have it as my oldest line of credit, it sits on an account with an alert setup to notify me of any transactions for security reasons since I don't use it.

Parents should have expained all this to you. Having a good credit score got me out of cellphone deposits, apt. lease security deposits, other deposits for utilities such as gas/electric/broadband. Sometimes insurance companies check your credit score and factor that into your premiums. It allows you better rates and more flexibility shopping around if you want financing for a car/home. It's just a good idea in general to have and to get started on it early.

'm basically forced to now buy a credit card
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You don't "buy" credit cards, they make an offer, generally they are free. I can't remember seeing any in years that weren't free, no annual fees, and some nice introductory no-low interest offers. You pay it off every month, no interest anyway though.

Many also have rewards. I use my chase card for just about all purchases, 1-3% cashback and then pay it off in full every month = profit. I get about $250 every 5-6 months or so. Some people like sky miles, etc.
 
Its a security deposit and youll get the $500 back plus interest in one year. Like the others said you need a credit score to do anything in this world. And if you never used credit before you just plain out dont have one. And not every lanlord reports to credit agencies.
 
It has nothing to do with the "real world". It is all about companies being lazy. There is still such a thing as manual underwriting, just noone wants to go through the trouble.
The fact is that your credit score doesn't mean anything except "I love debt". It is all based on how much debt you have available, how much debt you maintain, and how quickly you pay it off. If you have $10,000 available but never use it your score actually goes down, even if you bring in $1,000,000/year....

You might want to check out BestBuy as another option instead off dealing with the smucks at an Apple store or AT&T....
 
Thats not true, i am a business and finance major and your score will improve if you have a revolving credit that high and have a zero balance. Sometime manual underwriting can be worse, if they see something a simple credit score wont pick up that they dont like then thats it, plus if they see no credit history at all they most likely will STILL want a deposit. Manual underwriting is only good for bigger loans such as home mortgages
 
Your "deposit" will cover you until you have some history with AT&T.
They (AT&T) can't spend it. It will draw interest to which you are entitled.
once you have 3-6 months of good payment the deposit will be refunded + interest.
 
farscapesg1 said:
It has nothing to do with the "real world". It is all about companies being lazy. There is still such a thing as manual underwriting, just noone wants to go through the trouble.
The fact is that your credit score doesn't mean anything except "I love debt". It is all based on how much debt you have available, how much debt you maintain, and how quickly you pay it off. If you have $10,000 available but never use it your score actually goes down, even if you bring in $1,000,000/year....
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Not exactly accurate bro. Thewaxshop has the right of it.

Also, when you DO want to buy a house, your credit score becomes a very important number.
 
magoo said:
Your "deposit" will cover you until you have some history with AT&T.
They (AT&T) can't spend it. It will draw interest to which you are entitled.
once you have 3-6 months of good payment the deposit will be refunded + interest.
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I thought most did it for a year(it has been a while).

I know when I got my first sprint phone years ago I had to pay like 125 bucks for a security deposit. After a year they credited it to my account with interest.
 
Thawaxshop said:
Thats not true, i am a business and finance major and your score will improve if you have a revolving credit that high and have a zero balance. Sometime manual underwriting can be worse, if they see something a simple credit score wont pick up that they dont like then thats it, plus if they see no credit history at all they most likely will STILL want a deposit. Manual underwriting is only good for bigger loans such as home mortgages
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The problem is that it still doesn't mean shit. Between my wife and myself we bring in around $150,000/year and the only credit cards we have are our AmEx cards (through our employers). Everything is rolled through our checking/savings accounts. Cars are both paid for (so no credit score benefits there), house is paid on-time with a current goal of being paid off within 7 years, a full 6-months of expenses in an emergency bank account, all utilities are paid on-time, etc. So, under those circumstances I shouldn't be a risk for any company if they just took the time to research and verify my history... but they are too fracking lazy to go that route. Hell, I could walk into a car dealership and pay cash for a new car from our emergency fund but I would probably have issues signing up with a new cell phone company now :rolleyes: As time continues my credit score will just continue to drop in all likely hood since I refuse to play with snakes (aka.. credit card companies) as much as possible. Will it ever be 0... not as long as I have to use a corporate AmEx card... at least until I've got everything paid off and can roll all my company expenses from pocket and just get reimbursed later.
 
farscapesg1 said:
The problem is that it still doesn't mean shit. Between my wife and myself we bring in around $150,000/year and the only credit cards we have are our AmEx cards (through our employers). Everything is rolled through our checking/savings accounts. Cars are both paid for (so no credit score benefits there), house is paid on-time with a current goal of being paid off within 7 years, a full 6-months of expenses in an emergency bank account, all utilities are paid on-time, etc. So, under those circumstances I shouldn't be a risk for any company if they just took the time to research and verify my history... but they are too fracking lazy to go that route. Hell, I could walk into a car dealership and pay cash for a new car from our emergency fund but I would probably have issues signing up with a new cell phone company now :rolleyes: As time continues my credit score will just continue to drop in all likely hood since I refuse to play with snakes (aka.. credit card companies) as much as possible. Will it ever be 0... not as long as I have to use a corporate AmEx card... at least until I've got everything paid off and can roll all my company expenses from pocket and just get reimbursed later.
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You should get some financial education. Having credit is VERY powerful, IFF used right.

Any person with an IQ over 50 that pays bills should get a CC with rewards and put ALL they expenses on it. Simply pay it off at the end of the month. If you are lazy, setup recurring transactions with the company offering the products/services. You can only gain from this.

As for the OP, get a CC, learn to manage it, and live happily ever after. Just pay the 500$ deposit. If you can't afford it, don't get an Iphone, learn to live with what you can afford.

/end rant
 
Getting a credit card should be your first priority, not an IPhone. In Todas world you arent getting anywhere without credit history...Honestly why do you live under a rock?
 
farscapesg1 said:
The problem is that it still doesn't mean shit. Between my wife and myself we bring in around $150,000/year and the only credit cards we have are our AmEx cards (through our employers). Everything is rolled through our checking/savings accounts. Cars are both paid for (so no credit score benefits there), house is paid on-time with a current goal of being paid off within 7 years, a full 6-months of expenses in an emergency bank account, all utilities are paid on-time, etc. So, under those circumstances I shouldn't be a risk for any company if they just took the time to research and verify my history... but they are too fracking lazy to go that route. Hell, I could walk into a car dealership and pay cash for a new car from our emergency fund but I would probably have issues signing up with a new cell phone company now :rolleyes: As time continues my credit score will just continue to drop in all likely hood since I refuse to play with snakes (aka.. credit card companies) as much as possible. Will it ever be 0... not as long as I have to use a corporate AmEx card... at least until I've got everything paid off and can roll all my company expenses from pocket and just get reimbursed later.
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If you have a mortgage, you're already in bed with snakes, because your mortgage is probably through a bank owned by a bank (unless you use a credit union, then you're probably hopeless).

If you can afford to pay off your bill every month, on time, then you're doing yourself a disfavor by not using a benefits card like Chase or Citi. Cutting off your nose to spite your face really.

I even use my CC to pay for daycare, because the 3% finance charge they hit me with is less than the 5% I gain from the CC company for using it.
 
It comes down to resposibility. With all cash, there really is no record. You could bring in say your neighbors mail and say you're that person. With a CC there is fraud protection for the consumer and the business.
 
phildabill said:
You should get some financial education. Having credit is VERY powerful, IFF used right.

Any person with an IQ over 50 that pays bills should get a CC with rewards and put ALL they expenses on it. Simply pay it off at the end of the month. If you are lazy, setup recurring transactions with the company offering the products/services. You can only gain from this.

As for the OP, get a CC, learn to manage it, and live happily ever after. Just pay the 500$ deposit. If you can't afford it, don't get an Iphone, learn to live with what you can afford.

/end rant
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This. I get 5% back on gas and groceries, and 1.25% on all my purchases using my CC. No reason not to use one nowadays.
 
J-Will said:
It comes down to resposibility. With all cash, there really is no record. You could bring in say your neighbors mail and say you're that person. With a CC there is fraud protection for the consumer and the business.
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except that a large portion of CC uses arbitration if you have any griefs, which usually come in favor for the cc company... though it's not often you have problems with the cc company

-=Antimatter=- said:
This. I get 5% back on gas and groceries, and 1.25% on all my purchases using my CC. No reason not to use one nowadays.
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college student with BofA CC, technically 1% back (one point per dollar, 2000 points = $20 amazon GC which makes it 1%)
 
im sorry but theres something seriously wrong here.

the fact that, every month i can write a $1500 check to my landlord for rent, perfectly on time, the fact that i pay off cellphone, heating, water bills all auto-deducted from my bank account..

why the hell does NONE of that add to a credit value? im not paying with cash. all of this should be record proof that i am solid with money.

meanwhile, youre saying some 16 year old who got a credit card and did nothing but buy a bag of cheetos twice a month with it.. he can have stellar credit and get a loan for a house easier than me.

WHAT THE FUCK.
 
phildabill said:
You should get some financial education. Having credit is VERY powerful, IFF used right.

Any person with an IQ over 50 that pays bills should get a CC with rewards and put ALL they expenses on it. Simply pay it off at the end of the month. If you are lazy, setup recurring transactions with the company offering the products/services. You can only gain from this.

[. . .]
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I too agree with this. Twenty-year-old college student here. I pay for everything I can with my credit card, which is set to automatically pay off the entire balance twice a month from my checking account. Not only do I get substantial monetary benefits from doing this (3% or more cash back on everything) but my credit score is kept happy and rising. Seriously, there's almost no better feeling than receiving a $50 check every few months that you did nothing to earn. :p Plus, my bank offers free monthly/annual analysis of your spending. It's nice to be able to see exactly where you're spending in order to budget effectively, without having to keep a spreadsheet on every transaction you make.

I think the only significant thing I pay for that doesn't go through my credit card is my tuition, and that's only because my university doesn't accept credit card payments.

Just do a bit of research. There are some limitations. From my understanding, you don't want to go over a certain percentage of your credit limit, don't want to have too much of a balance out for an extended period of time, etc. But if you educate yourself, it's a valuable tool.
 
mecca said:
im sorry but theres something seriously wrong here.
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Because none of that actually works off of, builds, or uses credit? It just shows good payment history, which is a PART of credit. But without having a card and your report showing "This consumer has $10,000 of available credit", it's worthless.
 
mecca said:
im sorry but theres something seriously wrong here.

the fact that, every month i can write a $1500 check to my landlord for rent, perfectly on time, the fact that i pay off cellphone, heating, water bills all auto-deducted from my bank account..

why the hell does NONE of that add to a credit value? im not paying with cash. all of this should be record proof that i am solid with money.

meanwhile, youre saying some 16 year old who got a credit card and did nothing but buy a bag of cheetos twice a month with it.. he can have stellar credit and get a loan for a house easier than me.

WHAT THE FUCK.
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Yeah, actually. If you're not paying it with cash, then how are you paying for it? If you're getting it deducted from your bank account, it's still cash. The only way to build a credit score is to get a credit card, and use it once or twice and be responsible, by paying them off in time. You could easily have an amazing credit score if you would get a credit card, then pay your rent and monthly bills with the credit card, then pay the credit card off each month. It's not that hard.

Edit: Also, it's not responsibility with your money that companies care about, they want proof of your responsibility with other peoples money that they care about. It's one thing to be responsible with your money, it's a whole 'nother ball game when you're given $5,000 of someone else's money to 'play' with.
 
I'm not going to argue with the way that credit works, just with the fact that it doesn't actually mean anything except that the general population has fallen for credit hook-line-and-sinker. 1/3 of the FICO score is how much debt you maintain, another 3rd is how much new debt/types of debt/and length of using debt. Only 1/3 of it is based off of your actual payment history, the only part that actually shows you can pay your bills (and even that is questionable for some).

Sure, you can work the system to your advantage, but generally if you work the system long enough, it ends up working you over IMO.

Next thing I'll hear from everyone is that you have to keep your home mortgage for the tax deductions :rolleyes:

Anyways.... OP you're only real option is probaby to fork over the "deposit". As mentioned by others, as long as it is listed as a "deposit" you should get it back after a period of time, just like a safety deposit for an apartment.
 
The credit system is BS. I have an excellent credit rating, and got crap from a creditor once for not having enough lines of open credit available. My response was as follows; "Why don't you get me a lower rate! If I had additional lines of credit you would tell me that I have to many, as is you say I don't have enough. Either way you want an excuse to throw in my face so you can jack up my interest rates and I can go somewhere else if that's how it is." They came back 4 points lower :)
 
farscapesg1 said:
Next thing I'll hear from everyone is that you have to keep your home mortgage for the tax deductions :rolleyes:
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If you have a good interest rate, yes.

Honestly, it sounds like you have a lot to learn about finance. Not trying to be mean, just honest. A few extra payments per year for the first few years, and you can even own your home much sooner than normal if you're on a 30 year loan.
 
mecca said:
im sorry but theres something seriously wrong here.

the fact that, every month i can write a $1500 check to my landlord for rent, perfectly on time, the fact that i pay off cellphone, heating, water bills all auto-deducted from my bank account..

why the hell does NONE of that add to a credit value? im not paying with cash. all of this should be record proof that i am solid with money.

meanwhile, youre saying some 16 year old who got a credit card and did nothing but buy a bag of cheetos twice a month with it.. he can have stellar credit and get a loan for a house easier than me.

WHAT THE FUCK.
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Cash and check are the same thing from a financial standpoint. Think about it, you pay for the item all at once. Even if it doesnt hit your bank account for 3 days like a check, the full amount is paid instantly.

When you open up a line of credit, or have a credit card and pay for purchases through that, then you are using credit. You charge the full amount to the card. The card company then bills you for the full amount, which you pay with.... cash. If you cannot pay the entire bill then you are charged an interest rate fee until you do.

I'm not going to say that the system is not screwed up, however going against common practice and standards is not going to benefit you in the long run. You really do need to establish a good credit history.
 
sorry i still think its bullshit and i hate buying into this...

either way.. im still paying with cash. the credit company pays for my $5 bag of cheetos each month, but then they bill me, and i pay them with my cash.

so why, exactly, is paying this ridiculous credit company so much more "valuable" than paying for the cheetos myself? why are they so special? because they keep track of it? so do the banks.. they know what i pay for all the time.

i just think its ridiculous that paying directly for something is worse than paying a middle man for it, and that can directly result in NOT BEING ALLOWED to DIRECTLY PAY for a phone like everyone else does.
 
mecca said:
sorry i still think its bullshit and i hate buying into this...

either way.. im still paying with cash. the credit company pays for my $5 bag of cheetos each month, but then they bill me, and i pay them with my cash.

so why, exactly, is paying this ridiculous credit company so much more "valuable" than paying for the cheetos myself? why are they so special? because they keep track of it? so do the banks.. they know what i pay for all the time.

i just think its ridiculous that paying directly for something is worse than paying a middle man for it, and that can directly result in NOT BEING ALLOWED to DIRECTLY PAY for a phone like everyone else does.
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You're thinking about a CC the correct way, in that you use it and you pay it off. This mentality will keep you going just like cash, and you will be problem free. An advantage/ issue/ downside to a CC is that you do not have to pay it off each month. You just have to make the min payment. This is how CC companies make money, off the interest they charge you for not being about to pay off the card.

This is where the value comes it. And yes, they track your spending. Banks know what you spend as cash, and they keep the check for records, but they dont really know what you spend cash on. You use a $20 bill on gas, or a haircut or whatever, all they see is that you took out 20 bucks and make the assumption you spent it on something. With a CC you do get a level of security. You also get all your spending consolidated into one bill for one payment. It is quicker most places to use a CC, gas stations are much faster at the pump.

Plus how else do you buy things off the Egg? I think thats really the most important question from all this ;)
 
Last I checked I had 780 credit score by simply using one credit card (~10k limit, payed off each month).

Have never taken out car or house loan... I wanted to buy a new car recently and the local credit union denied me a decent (under 10%) loan (I had an account with them for 5 years) due to lack of credit "HISTORY".... went to other 3-4 places, all denied.

Ended up buying a car with cash right out the door.... silly.

Buying a bike next, only 5k, will just finance it no matter the % to get some actual credit history.
 
J-Will said:
Plus how else do you buy things off the Egg? I think thats really the most important question from all this ;)
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debit card! as i do for EVERYTHING in life, but apparently, that's the wrong thing to do. sigh.
 
Its not wrong, its just out dated. If someone gets ahold of your debit card, and uses it the cash is gone and there is not much you can do to get it back. If you see your CC is missing, you call the CC company and they track the usage of that card for the police, and you will not have to pay those items bought with your card.

My CC company even has pro active fraud protection. I recieved a call from them a few months ago because iTunes charged me 99 cents for an app I downloaded to my phone. The CC company thought that amount was suspicious and asked me to authorize the charge.
 
Think of it as building a trustworthy relationship. They get data to track your spending habits and responsible nature, and you get the convenience of having a large line of credit in your pocket. If you're able to resist the temptation to carry a balance, then you're in the clear. Some people are afraid of credit cards because they worry about that temptation. It's the mark of a financially responsible individual that one ignores such temptations.
 
Using a credit card or cards with cashback bonus are a good way to make money off the CC companies as long as you keep it payed off each month.

With my Discover card I get 5% cash back on gas and sometimes on other stuff depending on the promotion.. plus 1% back on everything else.
 
mecca said:
sorry i still think its bullshit and i hate buying into this...

either way.. im still paying with cash. the credit company pays for my $5 bag of cheetos each month, but then they bill me, and i pay them with my cash.

so why, exactly, is paying this ridiculous credit company so much more "valuable" than paying for the cheetos myself? why are they so special? because they keep track of it? so do the banks.. they know what i pay for all the time.

i just think its ridiculous that paying directly for something is worse than paying a middle man for it, and that can directly result in NOT BEING ALLOWED to DIRECTLY PAY for a phone like everyone else does.
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and just like everyone else, you can walk into walmart, buy a prepaid cell phone (with cash), then buy all of you air time (with cash). tada!

if you have not figured out by now why at&t does not want to give you $600 cell phone and phone plan with no credit history, I highly suggest you figure this out before you want a loan for a house or a car. you are acting like a kid right now that can't get a new toy, and you understanding of the situation is similar to a kid's as well.
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You should stop buying gasoline also, i mean who buys into that, really

just walk everywhere
 
ocellaris said:
if you have not figured out by now why at&t does not want to give you $600 cell phone and phone plan with no credit history, I highly suggest you figure this out before you want a loan for a house or a car. you are acting like a kid right now that can't get a new toy, and you understanding of the situation is similar to a kid's as well.
Posted via [H] Mobile Device
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Agreed. The only downside to CCs is on the merchant (a % of sale sale goes to the CC company, that's why every company gives away CCs). Fortunately, they usually include it in the price.
 
phildabill said:
Agreed. The only downside to CCs is on the merchant (a % of sale sale goes to the CC company, that's why every company gives away CCs). Fortunately, they usually include it in the price.
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There's a congressman who wants to make it a law that stores would have to post, and accept, two prices for everything they sale: one for cash customers, the other for credit customers.
 
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