Having trouble getting approved for a mobile phone contract because of bad credit history? You’re not alone in your struggles. In fact, thousands of other people are experiencing exactly the same thing. Major providers turn down applications by the hundreds per month. They do it because they don’t want to take high risks on
When a person has bad credit rating or poor credit score, this is indicative of that person’s repayment history. It could mean missed payments, delayed payments or default. The poorer your score, the lesser your chances to get approved with major providers in the UK will be.
But having bad credit doesn’t mean you won’t get approved anywhere else. If one provider rejects your application, you have to try with other providers because each one of them has different parameters when assessing your credit rating. Although it’s going to be a rough and difficult ride, just remember that it’s not at all impossible to get approved for a contract despite bad credit.
No matter how bad your credit score or your credit history, you can get around them if you keep in mind some insider tips below when applying for a contract.
1. Compare Handsets
When browsing through thousands of deals online from different providers, one of the things to focus on is the handset. After all, the freedom to choose the handset including the latest releases is one of the biggest attractions of pay monthly contracts.
To effectively trim down you choices to the best and most suitable handset for your needs and wants, you should compare what’s available side by side. To make it easier, you should identify features, functions, operating system and related details that you think you want and need. When you’re down to your top options, make use of comparison sites to help you make the right decision.
2. Choose the Cheaper Options
A huge chunk of your fixed monthly fee will depend on the cost of your handset. When comparing handsets, always keep cost in mind. If you want your application approved, you are better off with cheaper handsets than going after the latest phones.
Because your credit rating is less than stellar, you have to be realistic and practical. For this particular case, you need to give up the desire for the latest iPhone or Samsung Galaxy at least for now. Even if you’re not thrilled with the cheaper handset, try to be content until the time when you can improve your credit score.
3. Choose the Right Tariff
In addition to choosing your handset wisely and pragmatically, you also need to choose your tariff well. Your contract’s tariff, also known as your bundle for call, text and data, also has a role in your fixed monthly fee. If you want your fee to be cheaper then choose a tariff that will meet your needs to a tee.
To do this, you have to identify your average monthly phone service consumption. Are you a heavy caller, texter or do you need a generous data allotment? Identify your average consumption then tailor your tariff accordingly to save money and make your contract cheaper.
4. Don’t Choose Options with Free Gifts
We spoke to Michael Hass from the bad credit phone specialist NoHassleMobilePhones.com who revealed that chancers trying to get a free gift with a contract is a big reason for being declined:
Sure, getting free gifts with your handset is irresistible but it’s something you have to steer away from if you want to get approved. Pay monthly contracts with free gifts are considered high value which means you’ll struggle with getting approved if you have a less than perfect credit history.Michael Hass, No Hassle Mobile Phones
Again, stay away from such deals at least for now. No matter how appealing they may be, you have to be realistic. You’ll never or rarely get approved until your credit rating improves.
5. Prepare to Pay the Upfront Fee
One way to convince your provider to take a chance on you is to reduce the risk for them. Offering to pay a bigger upfront fee or deposit will do just that. This is a great way to cover the risks involved in the contract thereby justifying your provider’s decision to approve your application.
To find out how much deposit you’ll need to prepare, speak with your provider. This is a great time when you have to make use of your negotiating skills. There’s no secret here really, just aim to reduce the risk for them as much as possible to increase your chances.
6. Get a Guarantor
If you can’t manage to pay a huge upfront fee, you can get a guarantor instead. Some providers are open to the set-up provided that your guarantor has good credit, of legal age, a resident of UK and meets the minimum income requirement.
A guarantor can be your family and friend. As long as he or she is willing to back you up in case you can’t make payments, you’re on the right track. Essentially, the guarantor promises to shoulder your dues in the event that you are unable to keep up with your dues to certain circumstances.