If you have bad credit and you want to avail a phone contract, chances are high that you’ll end up rejected. Major providers in the UK are less keen to transact business with applicants who have bad credit under their belt because of the high risks involved. Does that mean you should forget about applying anymore? Well, not necessarily.
If you want a phone contract even with bad credit getting in the way, there are things you can do to lower the risks for your provider. Below are some tricks you can try when applying for a phone contract:
Stick with cheaper handsets
One of the easiest ways to lower the risks for your provider is to opt for a cheaper handset. If you’re looking forward to getting your hands on the latest iPhone or Samsung Galaxy, forget about it at least for now. Because you have bad credit to consider, you’d want your fixed monthly fee to be as cheaper as possible. One way to accomplish that is to choose a cheaper handset. While you’re at it, keep your phone services allowances to a minimum if possible.
Pay the upfront fee
If you have cash to pay for the upfront fee, you should go ahead and do it. In fact, you may want to offer to pay more than the usual upfront fee if you’re hoping to avail the latest handset. By doing so, you accomplish two things. One, you lower the fixed monthly fee because you already paid for most of the phone’s cost. And more importantly, you lower the risks for your provider essentially convincing them to approve your application.
Bring a guarantor
Another you might want to try is to bring a guarantor. This is ideal if you don’t have any cash to offer for the upfront fee. When you bring a guarantor, it accomplishes the same thing. You lower the risks or more like remove the risks on your provider’s end. In the event that you are unable to keep up with the fixed monthly fee, the guarantor shoulders your liabilities as per the credit agreement. In any case, the provider wins. Just make sure your guarantor is of legal age, a UK resident and must have good credit to be qualified.
Start with a Sim only deal
If you can’t afford to pay the upfront fee and you can’t find any guarantor to back you up in your application, you can try applying for a Sim only deal. With this type of deal, you won’t get a handset as part of the plan, just the phone bundle on your call, text and data services. This means that the fixed monthly fee is significantly lower than if you opt for a traditional pay monthly contract. Most Sim only deals last for 12 months but some providers also offer 1-month contract and no contract Sim only deals. With no lock in period to worry about, Sim only deals are easy to get approved for even if you have bad credit.
Check out no credit check phones
If all else fails, you can always apply for no credit check phones available on front page. These phones are specifically offered for people who have been refused a phone contract elsewhere because of bad credit. Approval is easy and fast with this type of deals because there’s no credit check ran on applicants. As long as you meet the basic requirements and you can provide proof of steady income, you should be able to get your phone and enjoy your services in as fast as within 24 to 48 hours.