Pros and Cons of Bad Credit Mobile Phone Contracts

If you have bad credit history, you probably already know that your mobile phone contract choices are limited compared if you have a good one. Major companies are more likely to reject your application because of the risks involved. But that doesn't mean that you can't find a good deal anymore.

With more and more providers offering bad credit mobile phone contracts nowadays, accessibility to affordable contracts with excellent handsets is never easier. If you can find a reputable company, you should receive your phone within 24 hours and you won't need to worry about being turned down either.

But just the same, it always pays to do your homework. Before you apply for a bad credit phone, make sure you know the pros and cons.

What are the Advantages?

Obviously, one of the main advantages of bad credit mobile phone deals is the fact that there are no credit checks involved. It doesn't matter if your credit history is really bad. As long as you opt for the offered recommendations, you should be able to apply for contract without hitch. You can also read through more tips about mobile phone contracts at Ehow if you want to further increase your chances for approval.
Another advantage is the cheaper monthly bill. Since most bad credit phone deals include new yet cheaper handsets, it also means lower monthly bills.
Finally, getting a bad credit phone can also do wonders for your credit history if you play it right. If you apply only for what you can afford, it's going to be easier to make the monthly payments. If you do it consistently and on time, credit agencies will see your improvement and that will reflect on your credit score eventually.

How about the Disadvantages?

As mentioned above, one of the main disadvantages of bad credit phones is with respect to limited choices. Even if you badly want the latest iPhone or Samsung release, you might want to put that on hold for now unless you want your application rejected.

Another drawback is the possibility of paying additional fees. Some companies who tout to help people with bad credit find mobile phone contracts have underlying fees you need to pay before you get approved.

Seeing that the pros clearly outweigh the cons, it is recommended to get a bad credit phone contract for now. Once you’ve worked and revived your credit history, you can then upgrade to other contracts and hopefully get the phone that you really want.