A Bad Credit rating doesn’t mean you can’t get your hands on a brand new mobile phone We offer Guaranteed No Credit Check contracts
If you have bad credit you might feel your only option is having a mobile phone with Pay As You Go sim card,
The good news is you can have the latest handset on a mobile phone contract with Guaranteed acceptance and no credit check!
We can help you get accepted for the mobile phone you want on contract.
A Guaranteed no Credit Check mobile phone contract is a solution if you have missed repayments in the past six years or made too many applications for credit in a short time.
You may of suffered with more serious credit problems like Being issued with a Default or a CCJ (County Court Judgement) .
You can still get a brand new mobile phone on contract.
How to Get accepted for mobile phone contracts with a bad credit rating
There is a secret way that you can get your self a mobile phone contract with the leading mobile phone networks in the UK like EE, Three, Vodafone and O2.
Apply for a Sim only 30 day contract – It’s a foot in the door
Pay monthly Contracts are usually 24 months minimum. However, Choosing a sim only deal on a 30 day rolling contract is the easiest way to get accepted for a mobile phone contract with a mobile phone network.
Passing a Credit Check and the Credit Scoring Policy by selecting a Sim only contract is pretty easy.
It’s by far the easier than selecting an expensive handset straight away.
Sim only contracts are low risk for mobile phone networks, so they are prefect for customers with a poor credit rating.
Applying for a 30 day sim only contract
If you apply for a 30 day sim only contract and ensure you make your repayments on time every month you will be able to show the mobile phone network you can manage your repayments well.
After 3 to 6 months, you just need to give the mobile phone network a call and ask to upgrade your sim only deal to a mobile phone contract.
Because you are now a customer you will have a better chance of getting a brand new contract
As you are now an existing customer, you will have a payment history with them.
This means that mobile phone network can now look at your repayment history with them rather than just looking at your Credit History.
In some cases you will notice the mobile phone network will not even carry out a further credit check.
This little secret appears to be working well for lot’s of our customers.
Paying by Direct Debit will ensure you don’t forget to make the monthly repayment
You just need to be sure that you set up a direct debit to make your repayments.
Mobile phone networks like Direct Debits as they feel more confident you won’t forget to pay your bill on time.
Ensure you pay your bill on time each month and you should find this little secret is a good way to getting your hands on your new mobile phone contract
But What happens if I can’t get a 30 day rolling sim contract?
Sometimes customers may not pass the Credit Check for a 30 day sim only contract.
This is pretty rare but can happen. Sometimes this happens because a customer already has a debt with the network.
Sometimes it may just be the mobile phone network cannot confirm your identity.
If you are unable to pass a Sim only contract you can try a different network or consider a mobile phone contract with no credit check.
Three and Vodafone are usually the easiest mobile phone networks to get accepted for on a Sim only contract.
In our own experience (with bad credit) We managed to get accepted for full contracts without the need of a sim only contract on O2 and EE.
Every customer is different and the Credit Scoring policies of mobile phone networks change daily, so sometimes EE may be easier to get accepted for where as the next day Three may be the easiest.
Mobile phone networks need customers
Mobile phone networks pay a lot of money for their networks and the only way they can make money and profit is by taking on new customers. All of the networks will take their fair share of customers with a less than perfect credit history.
Unlike Credit Card companies, Mobile phone networks need to take more risk as they need paying customers to survive and therefore it’s pretty common knowledge that they will accept customers with a bad credit rating
Building a relationship with the mobile network
Once you have proven yourself as a good customer you will find your internal rating with that network will improve. This means you will soon be able to take on additional lines, great if you want to take an additional contract for your Partner, Children or add a tablet to your account for example.
Usually after six months of being a Contract customer, the mobile phone network will be open to considering a new additional line.
Just be sure the new repayments are affordable, the last thing you want to do is build a good credit rating only to add further damage to it.
Mobile phone contracts can help rebuild or build a credit rating
Remember, your repayment history is going to be reported back to the UK credit reference agencies, so by keeping up with your repayments each month this is going to have a positive impact on your credit rating.
Mobile phone networks credit scoring
When you first apply to the mobile phone network for a new mobile phone contract they are going to use a method traditionally used by most Lenders called Credit Scoring.
When you apply they are going to look at the details you put in your application, they will then carry out several checks, Identity checks, Credit Reference checks and checks at the Uk fraud agencies.
Depending on what you have asked, the credit scoring system will say Yes or No.
High Value mobile phones are harder to get accepted for than lower value handsets
You may not realise this but the higher the value of the handset the harder it will be to get accepted for. This is because the mobile phone network are providing you with a handset which could cost nearly £1000 in advance.
If you have a bad credit rating then they may not be willing to take such a risk, so by ordering a lower value handset or a sim only contract you will find the acceptance rate easier than order a top of the range mobile phone.
Again, as we have said before, if you are wanting the latest Samsung Galaxy or iPhone, take out a sim only contract for a short period of time. It really does improve your chances of acceptance as your Internal Credit rating with the network will increase.
Bad Credit rating customers may be asked to pay a Deposit
One way some mobile phone networks work is by asking customers with a bad credit rating to pay a Deposit. This is an upfront sum of money you pay in advance, once you have paid this, the mobile phone will be dispatched to you.
Usually a deposit is held for 6 months and once you have made your payments on time each month for the period set by the mobile phone network this sum of money will be returned to you, either in a cheque or applied to your account.
Mobile phone debts
If you do take a mobile phone contract out and don’t keep up with the repayments the mobile phone network will report your missed repayments to the Credit reference agencies, this could damage your credit rating.
If you continue to miss repayments, the mobile phone networks are likely to pass your debt to a debt collection company.
So only take a mobile phone contract out if you are totally sure that you can afford the repayments.
Mobile phone contracts are a great way to build or rebuild your credit rating, but they can also damage one if you don’t keep up with repayments.
Also remember that most mobile phone contracts are now around 24 months long.
Mobile phone contracts with Loans
Some mobile phone networks are now changing the way they operate.
Mobile phone networks like O2, Sky and Tesco mobile will operate by offering the Mobile phone as a loan and the airtime as a credit agreement.
If you have a bad credit rating one of these deals are actually beneficial.
By reporting your mobile phone contract twice (one for the loan) and one for the airtime agreement you can actually benefit well for making two repayments each month.
The disadvantage however occurs should you miss a repayment. Missing a repayment to O2 on both the loan element and credit agreement will mean two missed repayment markers on your credit report over one.
So whilst the loan element is very good for the majority of people, if you do take such a deal it’s very important you don’t miss any repayments.
Upgrading Mobile phone contracts
Once you are accepted and run a mobile phone contract well you will be offered Upgrades and Early Upgrades. Once you get to this stage you will not need to worry about Credit checks as the majority of mobile phone networks will not carry out credit checks on mobile phone upgrades.
O2 and Virgin Mobile are sometimes known to carry out Credit Checks when applying for an upgrade. Vodafone and EE don’t currently credit check customers who upgrade their handset.
Of course in the future this may change, but EE and Vodafone are more happy to rely on their own internal credit rating rather than look into your credit report.
Choosing the right deal on pay monthly is very important
So now you know how you can get your hands on a mobile phone network with bad credit. The most important part now is choosing the right deal that suits you.
make sure you get enough minutes and texts along with the right Data package. Exceeding your allowances on a mobile phone contract is expensive and you don’t want to be getting high monthly bills.
Choosing the right deal at the start will ensure you know what your mobile phone package is going to cost.
That’s it, you can now get your new Mobile phone contract even with bad credit!
That’s all we have for you, you now know how you can get a brand new mobile phone contract with bad credit. You can choose to build your credit rating slowly with a network and a sim only package or you can choose a Guaranteed no credit check mobile phone contract. The choice is yours.