What is a Contract Mobile Phone and Why Should You Get One?
Basically, the dilemma of every mobile phone user is whether to opt for pay as you go or a pay monthly phone contract. While pay as you go simply means buying credits in advance in order to use your phone’s services, a phone contract lets you use your phone’s services and pay for them later. This means that services will stop in PAYG if you’ve used up all of your credits, but that is not the case with a contract.
With a mobile contract, you will typically get a free handset included in your package, with specific number of call minutes and texts. There will be a set amount of monthly payments that you will make to the provider for an agreed upon period, usually lasting about 18-24 months. During this time, you will be locked to the network until the end of the term, after which you are free to stay or switch providers.
A phone contract is great if there’s a specific phone you like which you couldn’t buy in cash. The price of the phone will be covered in your monthly payments together with inclusive credits, so it is actually more convenient. You can also take advantage of more freebies, like free calls to other users in the same network. Contract tariffs are also often cheaper than in PAYG, and you will find that you can save more in unlimited plans particularly if you do make a lot of calls and texts.
What is Needed to Apply for a Mobile Contract?
Just like with any other utility service application, the basic requirements include proof of identity, income, address, and you must be over 18 years old. While these are quite easy to satisfy, the hard part comes if you have a poor credit score or no credit history. In applying for a contract, you need to pass rigorous credit checks, and sometimes even submit additional paperwork is requested by the provider. This is because the provider is taking a huge risk in giving away a free handset, which is why you need to be able to prove that you are capable of making payments in a timely manner.
How to Qualify for a Contract Mobile Phone if You Have Bad Credit?
Just because you have bad credit doesn’t mean that you should forget applying for a mobile contract. If you think that a mobile phone contract would work best for you, you can follow these suggestions on how to increase your likelihood of getting approved. When we find you the best deals for bad credit, we instantly do this research for you based on the latest information.
Apply for Cheaper Gadgets
The newer and the more expensive gadgets have the highest risks for the provider, and most often they are only granted to those applicants with good credit ratings. If you are not too particular with your device and you just want a decent, working mobile, consider applying for cheaper phones instead to better your chances.
Consider Sim Only Contracts
Though they may still involve traditional credit checks, sim only plans are generally easier to qualify for than a regular mobile contract simply because a free handset is not given away. This means less impact and less risk on the provider’s part even if you stop making payments.
Sim only deals can provide the same benefits with a regular contract except for the handset. In fact, you can get cheaper service rates. Many sim only plans include call minutes, texts, and data that are twice as much as a regular contract, but for only half the price.
If you want to enjoy the benefits of being a pay monthly subscriber but hate long-term commitments, then a sim only contract is perfect for you. The terms are very flexible, and you can opt to renew your contract every one, three, six, or twelve months. These deals are ideal for people who have bad credit.
Prepare a Security Deposit
One of the ways to limit the risk to the provider is to cash out a certain amount as deposit. This money cannot be withdrawn for a specific time, and will serve as protection in case you default on your payments. After a while of on time payments, you may be able to claim it back.
Ask the Help of a Guarantor
If your credit is in pretty bad shape and you’re less likely to qualify for any type of deal, you can resort to finding a guarantor. You can ask a family member or friend with good credit standing to cosign your contract application. The guarantor will be held responsible if you miss your payments so make sure you both know what you’re getting into.
Look Into No Credit Checks Mobile Contracts
No credit check deals claim to provide guaranteed results for applicants, regardless of their credit scores. The term alone appeals to many individuals looking to avoid all those credit checks. However, getting a free phone without undergoing a credit check may sound suspicious, if not virtually impossible. In fact, some people were still denied a contract even after applying through these kinds of offers.
There are actually a few, real offers, but you have to know that they can cost you a lot and your phone choices are generally limited. Even sim only deals, which you would have easily qualified for can be priced outrageously when applied for through these networks. Although it could be a good idea to check out these no credit check types of deals, do not get your hopes too high.
Pay Off Outstanding Balances
It could take a while after paying off your balances before your credit score has picked up. Still, it is always a good practice to establish your payment habits. Pay off your overdue balances, pay your monthly dues on time, and after a few months you will see some improvement on your credit rating. Even the smallest ray of light can make a difference on your future application so always make extra effort in repairing your credit.
If all else fails, then the virtue of patience should come in place. Take a break in your applications for at least a few months, and do your best to improve your credit score during this time. If you decide to reapply, make sure that you do not send your applications too frequently.
SwitchMobiles can help you right now if you have bad credit but want a mobile phone contract. We do not advocated guaranteed contract phones or no credit check mobile phone contracts because the offers are misleading and you will often be charged extortionate costs.
Instead we have done our research to really increase your chances of approval. So you can get a contract directly with one of the major networks through our website, even if you have a bad credit history. It’s fast and easy to apply, and our service is 100% free with no obligation. Simple fill in the form above now to get started!