That Old Internet Modem Could Be Hurting Your Credit
When people think about what can hurt their credit score, they usually think of missed credit card payments, car loans, or lines of credit. But one of the biggest credit issues I see has nothing to do with any of those.
It’s an old internet or cable modem that was never returned.
Whether your provider is Rogers, Bell, Telus, or another company, the process is often the same. When you cancel your service, you’re expected to return any rented equipment, such as a modem or cable box. If that equipment isn’t returned—or if there’s an outstanding balance left on the account—it can eventually be sent to collections.
The surprising part is that many people don’t even realize it has happened. They assume they cancelled their service, moved on, and everything was taken care of. Months or even years later, they discover a collections account on their credit report while applying for a mortgage.
Unfortunately, once an account goes to collections, it can have a significant impact on your credit score. Even after you’ve paid the balance, the collections account may remain on your credit report for up to six years from the date it was paid, depending on the credit reporting rules and your situation.
That’s why it’s so important to tie up any loose ends when switching internet or cable providers. Keep your return receipt, confirm the equipment has been received, and make sure your final bill has been paid. Spending a few extra minutes today could save you a lot of frustration down the road.
If you’re planning to buy a home, refinance your mortgage, or renew your financing, it’s a good idea to review your credit report before you apply. Catching something like an old modem in collections early gives you time to address it before it affects your mortgage application.
The bottom line? Don’t let an old piece of equipment become an expensive surprise. It’s one of the simplest credit issues to prevent, and one that’s well worth checking before you begin your home-buying journey.