When you are applying for a phone contract and you have a history of delayed or missed payments, you are likely going to have a hard time getting approved for one. Majority of providers generally run credit checks. If you have bad credit, you’ll be tagged as a high risk customers and providers most often than not steer clear from risks.
If you have bad credit, most experts often recommend checking alternatives such as pay as you go mobile phones only if it is enough for you needs. Otherwise, you can opt for bad credit mobile phones. If you’re going this route, below are some of the things you need to know about these offers.
What are bad credit mobile phones?
Bad credit mobile phones, as the name suggests, are the type of phone offers designed specifically for people with bad credit. Just like traditional phone contracts, these offers allow you to choose a handset alongside your phone bundle which includes your call, text and data services.
Unlike with traditional phone contracts, bad credit phones are easier to get approved for especially when you’ve been refused elsewhere. All you need to do is meet your provider’s requirements and you’re almost always guaranteed fast and easy approval.
How much do they cost?
Typical phone contracts last 24 months at a fixed monthly fee that will depend on your handset and phone bundle. The cost of your phone contract, therefore, will rely on what you need and want.
For example, if you’re going to opt for the higher end handsets, expect for the fixed monthly fee to go up. If you’re looking for a generous phone bundle especially for the data aspect, also expect for your monthly fee to be higher.
To keep your monthly fee at a manageable rate, you need to make sure you know your needs on average per month first before hooking up with any phone contract plan.
How to apply for one?
To apply for a phone contract designed for people with bad credit, all you need to do is meet the basic requirements first which include the following:
- You must be of legal age (18 years old or above).
- You must be a resident in the UK.
- You must provide proof of steady income.
- You must provide supporting documents such as proof of identification, billing address, utility bill, etc.
Once you have the requirements covered, the next step is to scout for a reliable provider online. There are websites offering free service that helps customers with bad credit find the best phone deals available in the market today. Just make sure you double check the provider’s track records to ensure that you’re in good hands.
How do they work?
Providers are able to offer mobile phone contracts for people with bad credit because there are no credit checks involved when assessing applications. Your credit score essentially is not a factor when you’re applying for a bad credit mobile phone. All you need to prove is that you can handle the fixed monthly fee for the duration of the contract in order to get approved.
Are there any downsides?
Bad credit phone deals, unfortunately, are not just about the advantages. It also has some downsides which you must be aware of if you’re planning to apply for one. Since there is no credit checks involved, the risks are higher for the providers. In order to compensate for the risks, customers may be limited when it comes to their handset selection. In fact, some providers only offer outdated mobile phones and limited phone bundles.
Another possible downside is the higher fixed monthly fee. Again, considering the risks providers are taking, they may charge more than what they do for people with good credit. There are also hidden charges and fees you need to worry about for missed or delayed payments.