Applying for a phone contract with bad credit under your belt is not going to be easy especially if you want the latest mobile phone releases. Because of your poor credit history, your credit worthiness as a customer is also affected. If carriers think that they might lose money with you, they’ll obviously reject your application. This is what happens to majority of people with bad credit issues.
To cater to this portion of the market, most carriers in the UK are now offering bad credit phone deals. These are deals especially created for people who can’t get a traditional phone contract otherwise. If you’ve ever been refused a contract plan, this is where bad credit phone deals come handy. But before you sign any deal, here’s everything you need to know about said deals.
Requirements
One of the best things about bad credit phones is the minimal requirement. If you want a bad credit phone, you just need to be of legal age and a UK resident. You don’t have to worry about your poor credit rating getting in the way of your application anymore. Carriers offering this type of deal do not run any credit check on customers. As long as you can provide proof of income, your application is good as approved.
Contract Term
Bad credit phone deals work just like traditional phone contracts. You’ll have to choose your handset first then your phone bundle at a fixed monthly rate. In most cases, the contract term runs for 24 months. Your phone’s cost is spread over 24 months in addition to your fixed monthly rate for your call, text and data services. Like with any other contract, it’s imperative for you to pay your bills on time to improve to avoid any complications.
Handset Selection
While bad credit phones are easily available online and approval is super fast, there are a few downsides. One of which is the limited handset selection. Because the monthly cost is higher for high-end handsets, offers for handset choices are often limited to cheaper and older models. If you want the latest iPhone 6S, for example, you might not be able to avail it with a bad credit phone deal. What you can do instead is choose a cheaper handset then upgrade it to the latest Apple or Samsung phone once your credit score improves significantly. To check out the best bad credit phone deals today, head over to PhonesWorld.
Cost
The cost of your monthly phone bill will depend on your mobile phone choice and bundle plan. If you opt for a more expensive handset then it follows that your monthly bill will also be higher. You’ll also have to be aware that there are hidden fees and related charges that can spike your bill. Since we are talking about bad credit phones, expect rates to be relatively higher than if you have good credit. To compensate for the high risks, carriers offering bad credit phone deals often have higher fees associated to said offers.
Is it for you?
Despite its cost and limited handset selection, there’s no denying the fact that bad credit phones are very popular in the UK. With the no credit check rule, customers with bad credit are applying without qualms. Approval is often guaranteed and is confirmed in 24 hours or less. But before your get yourself hooked to a lengthy contract, it’s very important to ask yourself if a phone contract is really for you or not. If not, then it might be best to check out other types of deals such as SIM only or Pay As You Go.
