Why does signing up for internet service require a credit check?

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Key takeaways

• Most internet providers require credit checks for new service
• Hard checks will affect your credit score
• Soft checks will not harm your score
• Monitor your credit report for fraud
• You can get around the credit check if you use a prepaid internet plan

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Moving to a new home means credit checks to secure your mortgage and turn on your various utilities. When you call to set up your internet and TV service, it can seem like a never-ending cycle of checks — and you have a right to be concerned.

Repeated checks can affect your credit score and may take months or years to roll off from your credit history. This is in addition to the fact most of us were taught to never, ever give our Social Security number to anyone.

So when the telecom representative is telling you that you must hand over your info if you want to get connected, what should you do next?

The truth about hard vs. soft credit checks

Hard and soft credit checks, called inquiries or pulls, have different consequences for your credit history. Hard credit checks can negatively affect your credit score, but both hard and soft inquiries will show up on your credit report.

That being said, it’s best to err on the side of caution and assume that all providers are conducting hard credit checks unless they specifically state otherwise. To get to the heart of the matter, we reached out to Ted Rossman, Senior Industry Analyst for CreditCards.com, to get the facts on credit checks.

“Each [hard credit check] typically trims five to 10 points off your credit score for a few months, stated Rossman, but “soft credit checks (such as checking your own credit score) do not affect your credit score.”

What is a credit check?

What to monitor in your credit report

Besides looking at your credit score, take the time at least once a month to review your report. You can get free access through a number of apps or the credit agencies directly. Look for:

• Multiple birth dates
• Incorrect personal information
• Unrecognized accounts
• Bankruptcies or other court rulings/liens you were not involved in
• Unexpected credit inquiries

Why does my internet service provider require a credit check?

It’s important to understand why the internet service provider (ISP) is requesting your information. “Internet and TV providers often request credit checks for prospective customers because they want to know how likely that person is to pay their bills each month,” said Rossman.

Like when you sign up for a new credit card, companies want to know what type of customer you have historically been. They are trying to assess the risk of taking you on as a customer. And the good news, explains Rossman, is “If you have a good credit score, you probably won’t have to put down a deposit.”

The two main risks that providers are trying to assess are your history of on-time bill paying and whether you will return the equipment they loan you.

Reading the fine print

To avoid getting hit with extra fees, it is your duty to read the fine print for:

• Late fees
• Data cap penalties
• Non-return of equipment charges
• Promotional price term limits
• Regular pricing after promos end
• Contract length and termination fees

Will bad credit stop me from getting service?

The good news is having average or below-average credit may not stop you from getting service. Rossman explains, “If the prospective customer has a low credit score (or no credit score at all, which happens with many young adults and immigrants), then the provider will probably require a deposit to safeguard themselves against non-payment.”

And “one more thing,” reminds Rossman, “If you’ve frozen your credit (as a defense against identity theft), you’ll need to remember to lift the freeze before your internet/TV provider checks your credit.”

Another possible outcome for those with average credit is that providers will still offer you service, but it may be a modified account. For example, you might be eligible to have TV equipment in two rooms instead of four rooms of your home. This limitation can seem harsh, but this option is by far better than previous methods of credit monitoring.

How to get internet without a credit check

While some companies will always require a credit check to sign up for service, other providers will offer an alternative option. For no-credit-check internet plans, you may have to prepay for service, pay deposits or show proof of identity, such as a driver’s license or utility bill. Other ISPs also have special plans for customers with less-than-perfect credit scores. For example, Mediacom offers Xtream Connect.

Providers that do and don’t require a credit check

*CenturyLink does not conduct a credit check when you order online, but prepay with credit or debit card is required. As of 02/17/25.
**To qualify for DISH’s 2-year TV price guarantee and great DISH Deals, like a free Hopper upgrade, DISH Network performs a credit check. For customers with bad credit, no credit, or who would rather not share their credit history, DISH also offers Flex TV.
***Mediacom offers a low-cost internet plan called Xtream Connect for qualifying households without a credit check.
****Xfinity Prepaid offers home internet and WiFi without annual contracts, hidden fees, credit checks, or deposits.

Get the best deal on internet and TV service

At the end of the day, you are more likely to get a better deal and lower up-front fees if you do a credit check. If you prefer to avoid a credit check, go with a provider that offers prepaid options. Which option you pick depends on what you use the internet for and how many devices you have connected. Some prepaid plans may not offer enough speed for your needs.

It also helps to know your credit score so you have an idea of where you will land on the risk assessment scale. Make sure you don’t owe money to the specific provider you are calling, or you will likely end up with a more restrictive plan, even if your overall credit score is fine.

Internet credit check FAQs