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Guide to Buying a Mobile Phone on Finance

Mobile phones can be expensive. If you’re especially eyeing to own the latest handsets available in the market today, you need to be ready to spend money. Just take for example iPhone 6 and iPhone 6 Plus. At the moment, both phones are priced at £539 and £619 in the UK respectively. With the iPhone 6S expected to launch a few weeks from now, the phone is rumored to have an ever higher price tag.

But just because you don’t have the cash to pay for the phone upfront doesn’t mean you can’t one the latest iPhone, Samsung Galaxy or any other offer from the leading brands. With mobile phone finance deals, you can avail the latest handset by paying for the cost in installment basis. If you’re interested about this arrangement, here’s a quick guide to better understand how it works:

What are mobile phone finance deals?

As the name suggests, these deals exist to allow consumers to pay for high-end handsets in installment basis. It’s just like you’re financing a car or a house. Only this time, the financing is small and payable in a shorter period of time. If you can’t afford to pay for a handset upfront, financing is one option you can consider. There are providers online who specialize in this type of financing. Some carriers or providers may also offer such types of financing.

Who can apply?

Anyone who is of legal age, a UK resident and can provide proof of steady income can apply for mobile phone financing. Some providers may require you to have good credit to be eligible. But even if you have bad credit, you can still try to apply provided that your income meets the minimum requirement. Most providers are flexible with terms as long as you can prove that you can afford the monthly installment.

What are the requirements?

As mentioned, the requirements are pretty basic. You just need to be of legal age and a UK resident. In addition, you’ll need to provide supporting documents including proof of identification, billing address, proof of income and bank details for the automatic repayment arrangement. Some providers may accept credit cards as payment method.

What types of phones can be financed?

Most providers offer financing for all types of phones. That includes the latest handset offerings from popular manufacturers including Apple, Samsung, Lenovo, HTC, LG, Nokia and more. Approval for your handset choice, however, is dependent on a number of factors. One of which is your income. Another is your credit history. Lower income consumers with bad credit are recommended to stick with cheaper handsets.

Should you take one?

Financing your mobile phone purchase like other types of financing is a major financial move. It comes with consequences if left unpaid. If you’re planning to go this route, just make sure you know and understand what you’re getting into. It’s a type of debt that can bleed you out with hidden fees and charges especially if you miss or delay with your monthly payments.

Before you go ahead and finance your mobile phone, make sure you assess your needs and budget thoroughly. While you’re at it, you’d also want to research the different types of financing available for your personal circumstance. Again, remember to follow the simple rule to only opt for financing if you can afford it. Otherwise, you may be putting your credit score at risk. In the event of nonpayment, you’ll incur skyrocketing interests and fees that may get out of hand.

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