No doubt, owning a mobile phone in this time and age is a necessity of sorts. So instrumental are mobile phones in this time and age that we tend to frown or rather become surprised when a person says that he doesn’t own one. Technological advancements, improved designs, out of the world features have made mobile phones a great point of interest. Unfortunately, in so far as each and every single UK citizen would love to own one of the amazing smartphones released every now and then, the issue of finance keeps rearing its ugly head. The existence of mobile phone contracts has made it possible for scores of people to own a mobile handset without having to pay for it upfront.
So what is a mobile phone contract?
A mobile phone contract is basically an agreement between you and your service provider that allows you to own a handset and pay for it in instalments for a specified period of time without having to pay for it upfront. In other words, you simply pay a small deposit and pay the balance in instalments for a specified period of time. With a phone contract, it doesn’t matter if you have the cash to buy the phone of your dreams such as iPhone 7 or Samsung galaxy 8. You can own such a handset and pay for it over a period of time.
Can individuals with a poor credit rating apply for a contract?
If there is something that has made mobile phone contracts popular, it has to be the fact that it gives both good credit and bad credit individuals’ equal opportunity. In fact, there are mobile phone contracts that are specifically meant for individuals with a poor credit rating. These are: guaranteed mobile phone contracts, no credit check mobile phone contracts as well as bad credit mobile phone contracts. That said, individuals whose credit rating is poor can also enjoy the features of their phone of choice without having to worry about their history of defaults or credit score rating.
Why should you go for a mobile phone contract?
To many a people, the main appeal of mobile phone contracts is the idea of having a free handset. While the handset is not free in totality as you would still pay for it, it is correct to say that you would be receiving the handset freely initially and pay for it gradually over a period of time. For most handsets, you will receive a handset free without paying any security deposit. However, it should be noted that high end phones such as iPhone 8 or Samsung galaxy 8 require that you part with a small deposit upfront before you can be allowed to have them.
Opportunity to improve your credit rating
If you have a poor credit rating, there is no better way to improve it than going for a phone contract and diligently paying for it for specified duration. Timely repayments reflect well on your credit report and therefore will impact it positively over a period of time.
Cheaper phone bills
A phone contract comes with a package of minutes, data bundle and text messages. The bills under a phone contract tend to be cheaper as compared to pay as you go package. This essentially means that with every contract, you get to enjoy a set of minutes, data bundles and text messages depending on your usage.
Service providers tend to offer free gifts with their contracts for the purposes of achieving a competitive edge. Free gifts such as Xbox consoles or PlayStation consoles used to be very popular but of late have been replaced with cashbacks and vouchers.