What are the Right Contract Phones for People with Bad Credit?

It doesnít have to be a pay-as-you-go contract if you donít want to. The good news is there are other contract phone providers out there that donít exactly require a person to have a great credit standing.

However, you must first verify your current credit score through a credit report from a credit reference agency. One cheap way to do this is by getting free credit reports, although note that your access to this program is limited. Failing to make improvements to your credit score can have a great impact on your application for a contract phone.

You will likely get approved for a contract phone if you get a more affordable brand. This is simply because providers think that giving someone with a higher-end model involves bigger risk. Limit your brand choices according to what your credit score can afford.

Another good choice is the so-called sim-only contract. In this case, no mobile phone will be offered to you. You will only have to pay for the network charges so thereís little risk involved on the part of the contract provider.

If none of these have worked yet, you have to take it step-by-step. First, register on the electoral roll. Create a direct debit account in order to stay on the right track of your financial goals. Remember to always pay on time so you can develop a better credit rating by the time youíre ready to apply for mobile phone contracts again.

Mobile phone contracts that donít require a credit check

Stay away from companies that seem too good to be true with their offers. These unscrupulous companies say they can give you a contract without verifying your credit standing. The only advice here is to beware of them and donít give in too easily.

Set your expectations straight. In a no-credit-check mobile phone, thereís no way you can get the latest smartphone brand. But this should not be a big deal if you are not so techie yourself; and that a text and call feature is more than enough.

A no credit phone may only cost you £60, plus £30/month for your texts and calls. Therefore, choosing this plan is cheaper than having to pay for a contract that requires a credit check. Be aware though that your no credit check mobile phone contract provider may require you to pay for the first month in advance.

Before you seal a deal with these mobile networks, thereís nothing you can do to amend the agreed terms until the contract expires. But depending on the agreed terms, some companies may allow you to upgrade your mobile phone model such as a smartphone after six months.

Making your payments on time could improve your credit score, not just with fulfilling your mobile phone contract, but also with other financial obligations.

How to establish a good credit reputation?

Lastly, donít ever think that all of your phone contract applications will be declined because of your poor credit rating. There are ways to get out of this slump and continue building a better score until you are confident enough to apply for higher deals.

It is very important that you must be on the electoral roll. This is the first information lenders and network service providers alike check out on an applicant.

Make sure all your debts are being paid on time. Avoid getting blacklisted by County Court Judgments.

Think about buying a SIM-only contract in the beginning just so you can prove your worth to retailers and lenders. Pay your bill right on schedule until the contract is over.