Mobile Phone Contract Options for People with Bad Credit
Having bad credit history is a disadvantage in many ways. At the top of the list is probably to be turned down when applying for mobile phone contracts. Because of the high risks involved, rarely will you find a major provider in UK who is willing to take you on.
Fortunately, it's not all gloom and doom for you. More companies are now offering mobile phone deals designed especially for customer with bad credit. Among the options you can choose from are the following:
As you already know, bad credit poses high risk which means you need to reduce that risk in order to nab a deal. One way to do that is to consider getting a Sim-Only contract instead of the more expensive contract deals with handsets.
With Sim-Only contracts, all you'll get is the Sim card. In other words, you are essentially just paying for the services which typically include specific data, text and call usage. Since there is no handset included in the deal, it is cheaper hence more affordable for people with bad credit.
Contracts with Cheaper Handsets
If you want a deal with a handset included, you should opt for the cheaper choices. You are more likely to get approved if you settle with cheaper handsets instead of the latest releases.
Again, it will boil down to the risks involved. Companies are more likely to consider your application if they can see that you can afford the monthly payments. Logically, contracts with cheaper handsets are cheaper hence greater chances of approval.
If, on one hand, you really want the latest handset available, you can offer to pay an upfront deposit as one way to reduce the risk for providers.
Pay As You Go
If the two options above wouldn't work for you, there's always the Pay As You Go (PAYG) route. You can switch to PAYG without changing your number and you can practically know how much money you're sending on data, text and call. There's no danger of going beyond your budget as PAYG works like a top-up. That is, you need to top-up your phone in order to use the services. Once the top-up is used up, you cannot make outgoing calls until you pay for it in advance again.
PAYG is ideal for people who are not avid mobile phone users. If you only need it for important calls and texts, PAYG is the way to go.
To help you choose which mobile phone deal is right for you, click here for more information and comparison of the three options.