Things you need to know when applying for mobile phone contracts on bad credit

To many people, finding the right mobile phone contract in tandem with their personal needs is a daunting task. The hill becomes even steeper to climb especially when they have bad credit or are considered high risk. It is for this reason that people are advised to carefully compare several providers before they settle on one. Of course, when you have bad credit, it becomes more difficult finding the kind of contract you want. You find yourself getting rejected every now and then that it sometimes becomes stressful to say the least.

Bad credit mobile phones are offered by several providers across the UK. To make the best decision, you need to carefully compare the deals offered and settle on a provider that effectively meets your mobile phone contract needs. However, before applying for any mobile phone contracts on bad credit, there are a number of things you are advised to take into consideration.

Monthly cost

It goes without saying that the lower your credit scores the higher the amount of money you are bound to pay. What this essentially means is that if you have a low credit score and you apply for a high monthly cost mobile phone contract, chances are that you will be refused. The logical thing in this scenario would be to go for bad credit mobile phones contracts that have a relatively lower cost. By so doing, you increase your chances of being approved.

Network you settle for

There is no denying that there are a number of network providers in the UK that have a high propensity to tolerate people with low credit score than others. In this regard, being careful with the network provider you ultimately do business with is of essence. Go for network providers that tolerate low credit scores as opposed to ones that don’t. It increases your chances of being approved.

The type of handset you choose

Most providers are unwilling to approve bad credit mobile phones especially if they go for the latest mobile handsets. To improve the chances of your contract being approved, go for mobile phones that were released sometime back and not the latest in the market. A lower end handset improves your chances of being approved for a contract.

Make a substantive upfront payment

Considering that people with bad credit are more often than not looked upon as having high risk, you might consider making a substantive upfront payment to increase your chances of being approved. An upfront payment serves to reduce the risk on the part of the provider and inadvertently increases your chances of being approved.

Consequently, don’t apply for a bad credit mobile phone contract blindly. It’s important that you understand the reason as to why you have a low credit score. Some of the reasons as to why you might be having a low credit score are because of:

  • History of CCJ’s
  • Defaults in bill payments
  • Bankruptcy
  • Errors in credit report

Of course, if the reason for your low credit score is as a result of an error in your credit report, you might want to fix the same before applying for a mobile phone contract.