Do Subscription TV Sports Channels Check Your Credit Rating?

Subscription TV sports channels have exploded in popularity in the last decade or so. One example of this proliferation of channels is college sports channels that focus on a particular school or conference. In the case of these channels, schools and conferences love them because they provide a much-needed revenue boost, while fans love them because it ensures they never miss a game.

Perhaps, though, you prefer a subscription TV sports channel that focuses on a specific sport, such as boxing, golf, tennis, basketball, or another sport of your choosing. Thanks to the relatively inexpensive yet high-quality television equipment, you can be in the middle of the action of your favorite sport, all within the comfort of your living room.

As popular as these channels have become, it’s important to remember that the monthly fee you have to pay to view these channels is a commitment that you must fit in your budget to ensure that you don’t overspend. While subscription TV sports channels are certainly a nice luxury item, they are not something that’s required to survive, so it’s up to you to decide whether or not you can afford a subscription to these channels.

A question that may come up in your mind, beyond the monthly cost of a subscription TV sports channel, for example, LiveSport.Center, is whether or not the companies who provide these subscriptions check your credit rating. It’s a good question to have answered before you commit to anything. After all, your credit rating influences nearly every aspect of your financial life, determining the rates you qualify for when applying for loans to make large purchases such as a car, a house, or a major home renovation. Therefore, it’s crucial that you protect this rating as best as you can.

In addition, the waters are muddied even further by the fact that some subscription services do, indeed, check your credit rating in order to determine your rates and eligibility. Auto insurance companies, for instance, will often check your credit rating to help them determine your risk factor, and therefore the premiums you will pay to receive coverage. Likewise, cell phone companies such as Verizon and AT&T do a thorough credit check prior to approving you for a contract plan.

Furthermore, it’s well-known that a hard check of your credit can lower your score. Anytime you apply for a loan, a credit card, or other financial product, a hard check is performed on your credit. This check will temporarily lower your score, meaning you need to limit these transactions as much as possible. With all this in mind, then, we come back to the original question of whether or not subscription TV sports channels check your credit rating.

For better or worse, the answer to this question is “no.” If you have less-than-stellar credit, this answer comes as welcome news, since your rates won’t be negatively affected as you work to build a solid credit foundation. If your credit is in good shape, though, this fact means that you won’t be eligible for better rates on your monthly subscription payment simply because you take care of your credit rating.

Let’s look at a couple of times when subscription TV sports channel providers could look at your credit rating and then consider why it doesn’t benefit them to take such an action. The first opportunity these providers would have to check your credit rating would be when you first subscribe to their service. If they did a credit check at this point, they could use the results to set your initial monthly rate.

Additionally, companies could do a credit rating check during the course of your subscription. This could potentially provide valuable insight into whether or not you will have the continued means to pay your monthly subscription fee, which could trigger preemptive action to raise your rates to encourage you to cancel before they have to cut off your service.

Due to the ways, subscription TV sports channel providers are set up, though, and the way in which they provide their services, a credit check in either instance wouldn’t really make sense. Unlike cell phone companies, providers of subscription TV sports channels don’t have to invest in any infrastructure to deliver content to you as an individual. Though they need equipment to create the content, the equipment required to deliver the content to your home is already in place through your cable or satellite provider. On the other hand, cell phone companies often subsidize the cost of your phone and, therefore, have a vested interest in making sure you pay your bill for the duration of your contract.

Therefore, subscription TV sports channels are not exposed to any extra risk by taking on a subscriber who may not be able to pay for the duration of their contract. Also, unlike insurance companies, which use credit ratings to determine your likelihood of being in a crash that would cost the insurance company money, TV sports channel providers face no extra risk if you don’t pay, since they can simply cancel your service if they don’t receive a payment for a certain month.

These factors combined, then, demonstrate why subscription TV sports channel providers have no need to check your credit rating, as they have nothing to gain by knowing this information. They also have nothing to lose, even if insight they could have gained as a result of a credit check rating would have alerted them to your tenuous ability to pay your monthly subscription fee.

Steven Millstein
Categories Credit Scores