Mention the word “bad credit” and a number of people are bound to go into a spin. It reminds them of the problems and rejections they have had to go through every time they made an application for a mobile phone contract or even a personal problem. In fact, it’s correct to say that having bad credit is a serious issue. It’s a nagging problem that keeps popping up every time you are in need of a loan or mobile phone contract and need a solution like yesterday. However, you need not lose sleep over your bad credit status as there are numerous bad credit providers across the UK that are more than willing to help you get approved. That notwithstanding, what are some of the ways in which you can improve your chances of getting approved for a mobile phone contract with bad credit?
If you have bad credit, it would be wise to desist from making an application for high end phones and instead go for low cost handsets. This is because providers generally reject your application if they deem you high risk. High end latest phones are expensive and therefore pose a great risk to the provider hence the reason they tend to reject your application. A low end cost phone on the other hand is not as expensive and redeemably reduces the risk on the part of the provider hence the high chance of being approved. As such, to increase your chances of being approved, go for a low cost handset or if possible, a refurbished phone!
It’s imperative to note that different mobile phone providers have different rules as well as criteria they use to approve a person for mobile phone contract. In light of this, comparing a number of providers before making an application is of essence. It gives you an opportunity to study the criteria for approval, set the perks for different plans and ultimately help you make an informed decision based on your needs and budget.
Paying an upfront fee incredibly increases your chances of being approved for a mobile phone contract. Generally, mobile phone providers view people with a poor credit rating as high risk and that is why there is a high rejection rate. However, if you offer to make an upfront deposit, providers feel that they are cushioned financially and that the risk on their side is drastically reduced. They therefore have no reason to reject your application and therefore more often than not approve your application.
It might seem like the last resort but bringing along a guarantor can help you get approved for a mobile phone contract. The guarantor you bring along should be someone with a healthy credit history or your application might not be approved. Basically, how this works is that in the event you are unable to meet your contractual obligations, your guarantor will be obliged to make the payments on your behalf.