What Happens When You Apply For A Mobile Phone Contract?

If you have been on a Pay As You Go (PAYG) plan and wish to switch to a contract plan, the first thing on your to do list is to look for a mobile phone provider who will offer you a better deal. However, that’s the easiest thing to do as once you make an application; your fate belongs with the provider. So ever wondered what happens when you make an application for a mobile phone contract?

Review of application

Once you make an application, your provider will review it to ascertain that all the details filled are correct. These are the personal details, the financial details as well as the proof of income. They might do a background check to ascertain that you are employed in the place you indicated and that you get income every month. Once this is done, the next order of thing is of course credit checks.

Credit checks

Credit checks are a standard operating procedure whenever you apply for a mobile phone contract. Mobile phone providers basically want to have an inkling of your past payment history to ascertain whether you can be relied upon to make payments on time. Once your credit history has been looked into, your provider can either approve or reject your application.

Reason for approval or rejection

It’s imperative to note that there are a couple of providers that offer bad credit mobile phones plans to their customers. In such circumstances, credit checks are merely done to help them advice you on the best plan that suits you. Once credit checks have been done, your provider can either out rightly reject your application or advice you on the best plan to go for based on your application.

Comparing of plans

If you’ve reached this stage, it means that you have been approved for a mobile phone contract and therefore can go ahead and choose a plan that best suits you. You can choose two kinds of plans. A brand new phone plan or you can go for a refurbished phone plan. The difference lies in the budget. Brand new phone plans tend to be exorbitant as opposed to refurbished phone plans. You therefore need to go for a plan based on the perks you want as well as your ability to meet monthly payments.

Contract signing

Once you have read the fine print, settled on a plan of your choice, the last thing on the card is to sign a contract and get a mobile phone of your choice together with the perks as outlined in the contract. Ensure that you understand the terms and conditions of the contract and that the plan you have settled for is in tandem with your monthly usage needs.

There you have it. Next time you are applying for a mobile phone contract, the above steps will guide your approval or rejection!