Dish Network and Your Credit Score – What You Should Know

For Christmas we ordered DISH Network for my wife’s parents. They live in the country and don’t have access to cable; satellite service is their only option. In the process of ordering the service, I learned that DISH Network runs a credit check that results in an inquiry on your credit file. Even more important, it turns out that the price you pay for the DISH Network service will vary substantially (we’re talking hundreds of dollars) depending on your credit.

This is another example of how your credit score can affect many areas of your financial life. So let’s take a look at why DISH Network checks the credit history of new customers, how the credit check will affect your FICO credit score, and the affect your credit will have on how much you pay for DISH Network service.

Before getting to the details, I should say that the folks at DISH Network were great. They answered all of my questions (and I had a lot of them), and they were available to install the equipment the very next day. While you can order DISH Network online, I found that talking to a live representative (DISH #: 1-888-347-2579) was the only way to get all of my questions answered.

Why DISH Network checks credit histories

DISH Network offers new customers a lot of equipment for free in exchange for signing up for a 2 year commitment. For satellite service, the equipment includes the satellite dish and the DVR. The equipment isn’t really free. Rather, the cost of the equipment is included in the monthly service fee. As a result, DISH Network wants to make sure that new subscribers will fulfill the 2-year commitment. Checking a potential customer’s credit enables DISH to assess their credit risk.

How the credit check will affect your credit score

Credit inquiries occur when a consumer’s credit history is pulled and reviewed by creditors and potential creditors. There are two types of inquires, often referred to as a hard pull or a soft pull of a credit file. Hard pulls lower your credit score, typically by a small amount, while soft pulls do not.

In the case of DISH Network, the representative told me that the inquiry would lower my FICO credit score by 2 points. I doubt that’s accurate. For starters, the impact of an inquiry on a credit score depends on a number of factors, including what your credit score is to begin with and the number of other inquiries reflected in your credit history. But with that said, I suspect the affect on my score is minimal and will be temporary. On the other hand, if I were about to buy or refinance a home, I’d hold off on the satellite service until I closed on the loan.

How your credit affects how much you pay for DISH Network

What really surprised me was the cost difference for those with poor credit. For example, while we got the DVR for free, some would have to pay an activation fee of $99 or $149 based on their credit. The DISH rep explained that he does not see any of my credit details or credit score. Instead, the computer simply puts each potential customer into a specific credit category.

And on top of the activation fee, some folks won’t qualify for special pricing. For example, DISH Network is offering its 120 channel package at a $15 a month discount ($25 instead of $40). But for those with poor credit, they won’t qualify for the discounted price.

DISH Network is not alone in using credit histories and scores to evaluate potential customers. Satellite and cable companies alike, which offer long term contracts in exchange for free equipment and reduced pricing, check credit files. Cell phone carriers do the same thing. It’s just one more reason why a good credit score is so important.

Published or Updated: May 5, 2011
About Rob Berger

Rob founded the Dough Roller in 2007. A litigation attorney in the securities industry, he lives in Northern Virginia with his wife, their two teenagers, and the family mascot, a shih tzu named Sophie.

Comments

  1. davis says:

    thank you, a lot of really good information. Hmmm I dont know I guess I am sticking with cable for the time being. Damn that really sucks.

  2. ally cat says:

    I just applied for Directv after getting a new mortgage with scores above 600 but lower than 640 (not great, but I’m working on it). Directv wants me to pay $400 upfront and no, I don’t get any discounts. I’m not sure what scoring system they are using but I find it hard to believe I can get a mortgage but not Directv.

  3. Another fine example of how the individual with a lower credit score is unnecessarily monetarily punished. My credit file has not one late payment ever, anywhere. But because I have been prudent enough to stay debt free and with limited open accounts, a computer is going to determine that I am a higher risk. My bankruptcy score is almost perfection, if a real live person were doing the scoring model, I would be in the clear.

  4. Dave p. says:

    They refused to answer any of my questions until they ran a credit check. I wanted to talk about packages and internet. Yes i am planning to buy another home and do not want a hard hit on my credit. Screw dish and the horse they road in on.

    • Stephanie Colestock Stephanie Colestock says:

      Based on their business model, I can see why they wouldn’t be able to give you pricing info without running your credit. But to not even answer questions? That’s a shame — seems like a good way to lose out on potential customers.

  5. Lynn K says:

    As an identity theft victim living in an area without cable, I am unable to get any television or internet service other than dish network, and they tried to take advantage of my situation with a huge “security deposit” so now I live without any internet or television. I can’t even get broadcast stations, or, for that matter, FM radio. Never be a crime victim, you’ll be punished far longer than the perpetrator.

  6. Gabriel says:

    I get dish I qualify but my doubt is. Can I make my credit score go up with dish? I mean if I paid on time and complete the 24 month contract??? Thank you

  7. Mark says:

    I applied on-line to re-connect/resume Dish service after 2 yrs with TWC and began what turned-out to be a long ordeal while ‘chatting’ on-line with one of their CSRs.
    Interestingly I was able to get a package rate quote for their 2 yr guaranteed pricing before my credit info was obtained and they ran a credit check. As it turned- out, I ” qualified” for the attractively low rates quoted earlier but did not ” qualify” for the second part of the promo :
    free activation or no one-time equipment fee – despite an 825 FICO ! Surprising to put it mildly.
    It is difficult to imagine how anyone would qualify for both “promos” if its based on credit score alone. Of note, I was a steady auto-pay Dish customer in the past, so no problems with payment or service issues for that matter with them or other creditors. It seems clear to me that what Dish gives to you in an attractive upfront package payment, they make-up for with activation and equipment fees. No surprise there. But the opaque and deceptive way it was handled was akin to buying a car!

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