What You Need to Know: Bad Credit Phones

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Majority of consumers in the UK are hooked to a phone contract. With mobile phones becoming a necessity more than a luxury, there’s no surprise why consumers always opt for pay monthly contracts rather than pay as you go deals.

There’s just one problem. If you have a bad credit history and you want a phone contract, your application is likely to get rejected. But does that mean you should forego getting a phone contract? Well, not necessarily if you try the following tricks below:

Opt for a cheaper handset

Providers reject applications when you have a bad credit history because of the high risks involved. One way to lower said risks on your provider’s end is to lower the monthly fee which you can accomplish by opting for a cheaper handset. This option is not always ideal especially if you’re after the latest iPhone or Samsung Galaxy. But since you have bad credit, a cheap handset should do for now. You can always upgrade it to a higher end handset once your credit score improves.

Pay the upfront free

If you have cash and you’re dead set on getting the latest handset as part of your phone contract deal then you may offer to pay a higher upfront fee than usual. Most high-end phones have required upfront fees. By paying more than the required fee, you are lowering the risks for your provider hence improving your chances for approval. Sadly, this is only applicable if you have extra cash to allot for the upfront fee.

Bring a guarantor

Don’t have cash for the upfront fee? You can try bringing a guarantor instead. Like the other two options above, a guarantor will lower the risks for your provider. In fact, a guarantor when eligible can really raise your chances of approval. In the event that you are unable to pay the fixed monthly fee, the guarantor agrees to pay it on your behalf. In actually, there’s really little to no risks at all on your provider’s end.

Consider SIM only deals

If the aforementioned options won’t work with your situation then the next best option is to consider SIM only deals. SIM only deals do not include handsets and only services for your call, text and data hence significantly cheaper than traditional phone contracts. Some SIM only deals also don’t have the 24-month lock in period so it’s easier to get out of if you choose to.

Check out bad credit phones

Finally but not least option is to check bad credit mobile phones. As the name suggests, these types of phone contract deals are designed especially for people with bad credit issues. Just like traditional phone contracts, these deals also offer a handset and a phone bundle. You’ll pay a fixed monthly fee for 24-months covering the cost of your phone and your call, text and data usage. But there’s a hitch. Handset options are usually limited to older models and fixed monthly fee may be more expensive than usual.