Credit Report Conundrum: Advance payment contract phone.

yamirider

This little ones got me perplexed guys, maybe someone here can give me an answer or some ammunition prior to offloading onto EE.

Two months ago i upgraded my mobile phone contract from Orange to EE. Having had an Orange contract for approximately 5 years it has never once appeared as an account on my Experian credit report which i check weekly to track my accounts.

Having transferred to EE, i now have an entry on my credit report. This month for instance i have had an update to the account over the last few days showing a balance of £64. This is made up of a £55 per month plan and £9 charges which was debited from my bank account on 15 Jan.

Sounds simple, however: The terms and conditions of the contract are that the monthly payment plan is paid a month in advance. i.e. This months £55 charge puts me in credit over the forthcoming month and my previous months charge covered the month December to January. If thats the case, how can i possibly have a balance on this account at the beginning of the monthly period having made no calls?

Questions:

Should i have an EE account shown on my credit report considering there has never been an Orange one on there? (This has dropped my credit rating due to the opening of a new account)

How can EE justify a displaying a positive balance when i pay a month in advance?

A little confused,

Pete

Tixy

Yes they are entitled to report your account. I am suprised Orange didn't actually. My orange account has been on my experian file for over 8years.

The balance shown relates to the invoice outstanding at the date the update was sent to the credit reference agency. The fact that the invoice is generated in advance for a prepaid period is not relevant, the invoice is still owed at that point.

Providing you make all payments on time then if anything it should have a positive impact on your ability to get credit.
(A new service contract opened may drop your 'score' that experian sell to you but won't decrease your chance of getting credit from lenders).