Did you know that you can still snag a phone contract even with bad credit? While most providers may reject your application, there are some things you can do to convince providers that you are not as high-risk a customer as what they think. Below are some tricks you can try to get a mobile phone contract even with bad credit:
If you can be more flexible with your handset choice, one of the easiest ways to reduce the risks for providers is for you to opt for a cheaper handset. By doing so, you are essentially reducing the fixed monthly fee you have to pay. In turn, you are increasing your chances for approval. You can simply just upgrade your handset later on once your credit rating improves.
Another trick that works with some providers is if you offer a higher upfront fee for your phone contract. This is ideal if you’re really dead set on your handset choice. By paying a higher upfront fee, you are reducing the risks for providers and also you fixed monthly fee along the way. This option, however, only works if you have sufficient cash handy to cover for the upfront fee.
If cash is short but you still want the latest handset for your phone contract then you can bring a guarantor. The guarantor needs to co-sign the contract, which means that if you default on your monthly bill, the guarantor shoulders the liabilities. In essence, the risks is little to none for your provided hence higher likelihood for approval. For the guarantor to be eligible, he or she must be of legal age, a UK resident and has good credit.
If the aforementioned options do not fit your situation, settling with a Sim only contract for the meantime is a good fall back. Sim only contracts are cheaper since there’s no handset included in the plan. Plus the contract is also usually shorter and there’s no lock in period for some offers. For a Sim only deal with 4G at no extra cost, Tesco Mobile has great offers for you.
If all else fails, there’s still a last resort you can turn to. More and more providers online are now offering bad credit mobile phones. Your credit rating no longer matters since there are no credit checks ran on applicants anymore. But there’s just a hitch, it may be more expensive than traditional phone contracts offered for people with bad credit.