3 types of mobile phone contracts suitable for people with bad credit

3 types of mobile phone contracts suitable for people with bad credit


Let's face it. Having a poor credit rating is a nightmare of sorts. All of a sudden you find yourself in a position that makes everything difficult for you especially when you are seeking for a loan or a mobile phone contract. Lenders and mobile phone providers are always looking at you as someone who is irresponsible financially and cannot effectively be trusted with a mobile phone contract. While this was largely the case a few years ago, the terrain has shifted with the emergence and subsequent popularity of phone contracts specifically designed for those with a poor credit rating. If you have bad credit and have been denied a mobile phone contract on numerous occasions, you need not despair as there are 3 different types of mobile phone contracts that you can apply for and be approved your credit score notwithstanding.

Let's take a look at the 3.

Bad credit mobile phones

As the name implies, bad credit mobile phones are specifically designed for individuals with bad credit. This particular kind of phone contract was launched with the sole intention of romping UK citizens with a less than average credit score. Those with a less than attractive credit score can apply for these contracts from a number of network providers across the UK and get approved without having to worry about the status of their credit score. However, it's highly advisable that a person chooses carefully their provider before making an application. In fact, one should make an application with a provider that has a high acceptance rate to improve their chances of being approved.

Guaranteed mobile phone contracts

From the sound of the name, this particular type of mobile phone contract gives a person the guarantee of an approval irrespective of the status of their credit score. Those with a low credit score can apply for this type of contract and be assured of an approval irrespective of how many times they have been declined in the past. Just like bad credit mobile phones, this type of contract also does not take ones credit score into consideration. Credit checks are carried out but are not used as a basis to determine whether a person should be approved or rejected. Again, different providers offer different plans under guaranteed mobile contracts and therefore it is essential for a person to choose wisely before making an application.

No credit check mobile phones

No credit check mobile phones contracts are the kind where credit checks do not play a role in determining approval or rejection of an application. This particular type of phone contract is very popular with individuals with a history of CCJs or defaults. The downside is that this particular type of contract has high interest rates as compared to standard contracts. You also have to commit yourself to a longer period of time as compared to standard contracts.