Mobile phones have become very critical in life today and it is impossible to imagine life without one. Because the pay-as-you-go deals are becoming less affordable, the many UK mobile phone providers prefer contracts so that clients can pay over time.
Benefits of using contract phones for bad credit as opposed to buying direct
- There is a wider range of mobile phones to choose from
- The cost is spread over a period so that you do not have to feel the burden compared to purchasing in cash.
- It allows you to keep improving your credit score so that you can enjoy better deals both from phone companies and financial institutions.
Phone companies check on clients’ credit score to cushion their businesses
While mobile phone companies do not want to lose clients, they want to deal with people who can be able to pay credit advances to them. Therefore, they have to take every precaution to protect their businesses by checking credit scores. Because of this, it is important to check with various stores and phone company’s rules to select the right option.
While some traders post their banners shouting that you can get any phone contract even with bad credit, the argument is simply misleading. When applying for contract phones for bad credit, the phone company has to carry due diligence to prevent falling into losses.
How to get the phone of choice when you have a poor credit score
- Look for traders who have operational relationships with different phone companies. This is because various phone companies have different rules that might fit your credit score.
- Check for a mobile phone that has a lower cost because the risk will be lower for the phone company. What this means is that the smartphone you get might have a poorer camera, screen, and other features when compared to other top rated handsets.
- Talk to the company directly to learn from their customer support about the requirements. Often, phone companies set out strict rules when working with third parties and the latter may also add new conditions that compromise your ability to get the phone you want.
- Raise some deposit towards the phone you want to help keep the risk taken by the phone company even lower.
- Use a close friend with good credit score to guarantee your commitment to pay. Talk to your dad, uncle, husband or wife with a good credit and have them co-sign the contract.
- If you were denied a bad credit mobile phone contract in the past, the best thing is not to re-apply immediately, but checking with credit reference firms to correct any mistake.
How to improve your credit score
If your credit score is poor and is making it difficult to get a contract phone, the chances are that other problems might be on their way. For example, financial lenders will also not be willing to advance credit to you because you are a high-risk party. Therefore, the best thing to do is to work on improving your credit score using the following tips;
(i) Check your credit report and fix any errors that might be working against you.
(ii) Set up payment reminders so that all your dues are made on time to avoid hurting your credit score.
(iii) Keep reducing every debt you owe to lenders by following agreed terms and conditions.
(iv) If you are unable to service a loan to the agreed level, make sure to renegotiate the terms instead of hiding.
(v) Do not borrow another loan to pay debts because you will only sink deeper into credit.
(vi) Consider credit consolidation