Having bad credit can seem like a prison of sorts. You don't have the freedom to choose the kind of deal you are given and your bargaining power is greatly diminished owing to the fact that providers always view you as high risk. In most instances, you are forced to accept what you are given because you simply do not want to go through the same ordeal of one rejection after the other. However, thanks to the popularity of bad credit mobile phones, UK citizens battling with bad credit can now apply and be approved for a mobile phone contract without having to worry about the status of their credit score.
In as much as bad credit mobile phones have been the saving grace for UK citizens with a less than average credit score, there are a number of features that people need to be conversant with as concerns bad credit mobile phones.
Majority of bad credit mobile phones do not attract credit checks. Well, it's a requirement in the UK for mobile phone providers to carry out credit checks prior to approval. However, the results of the credit checks are not that important as this particular type of contract is specifically designed for people with a poor credit rating. While there are UK providers that actually approve anyone irrespective of the status of their credit score, there are those that set the minimum score for which they can approve a person for bad credit mobile phones.
Ordinarily, providers in the UK charge high interests on bad credit mobile phones. The idea is that considering the fact that no credit checks are done or rather have no bearing on approval or rejection, most UK providers charge a high interest rate as a mitigating factor. As such, while you might get reprieve for being approved even if you have a less than stellar credit rating, you will have to part with more money as compared to standard contracts.
Perks refer to the benefits that a customer enjoys under any given plan. This includes number of free texts, minutes, number of data bundles, and any other benefits that a person enjoys when applying for a given contract. Generally, those applying for a bad credit mobile phone enjoy fewer perks as compared to those applying for standard contracts. For one, it's difficult to get approval for the latest high end phone under bad credit mobile phone contracts and also the number of minutes, texts and data bundles pales in comparison.
While standard contracts have a standard minimum contract period of 12 months, the same cannot be said of bad credit mobile phones. Most bad credit mobile phone providers require that a person be locked in for at least 18 months. The cancellation fee is also relatively high as compared to that of standard ordinary contracts.