Getting a phone contract when you already have a bad credit history can raise many alarm bells for contract providers. Think about it, phone contracts (along with texts, data and other features provided within the contract) can be viewed as a form of credit, they would make sure that you’re 18 years or older and look up your credit history to ensure that you were able to manage money in the past because, let’s face it, no creditor wants to deal with missed or late payments. However, that doesn’t mean that acquiring a mobile phone contract with a bad credit score is beyond the realm of possibility. If you want to know how to do so, continue reading the following guide.
Explore Family Deals
This is one of the methods where you can get around your bad credit score and sign a contract. These deals are great as there can be up to 10 people involved in the deal and only one person responsible for the contract. Only that person is responsible for the contract; hence, that person alone will be subject to the credit check. Also, these deals can be pretty cheap for all people involved, but bills will have to be paid by the person responsible for the contract. This method also won’t improve your credit score if that’s your goal, but if you’re looking for a fast method to acquire a mobile phone contract and already know a family member with a good credit score who also needs a phone contract, then you can follow this method.
Having a bad credit history means that you’ll have to review your options at every turn and that includes exploring the different plans and packages of providers. If you already have an old handset, you can find information in a reliable URL that will explain that applying for a SIM-only plan is the best option, as they are always approved (almost 99% of these contracts are) and while it’s not the most ideal plan, a SIM-only deal is a good way to improve your credit score. What’s even better is this means less financial risk, so you won’t have much trouble working on increasing your credit score.
Consider Paying Upfront
Providers may give you the chance to pay upfront in case you have a bad credit score. As mentioned before, providers don’t want to deal with late or missed payments, as this will affect their profit, and bad credit history is an indicator that this can very much happen. This method is useful, especially if you’re trying to acquire a specific mobile phone. To do this, you’ll have to contact the provider and know the amount of the upfront fee required for that phone. Upfront fees are some sort of a guarantee that you’ll be able to decrease the risk of you defaulting with your payments. They are also the best way to go if you want to buy a specific phone with an already bad credit history.
Not all providers will have the same criteria, and while there are no significant differences in criteria used to accept phone contract applications, you can still try applying for different providers. One provider, for example, may reject your application outright due to your low credit score, but another provider may provide you with other plans that are designed for your circumstances. The truth is not everyone who attempts to sign a mobile phone contract has a high credit score, and despite providers not wanting to take the risk of accepting contracts from people with bad credit history, they will design other plans for people like you. You should take into consideration that these may be more expensive than normal phone contracts. Also, you may not have the features that come along with standard phone contracts.
Ask a Co-signer for Help
Many providers will give you the option to ask a co-signer to sign your contract. What a co-signer does is making sure to keep up with your due payments if you can’t. Much like the person responsible for family deal contracts, a co-signer (which can be a friend or a relative) is also the person who will undergo a credit history check, but their credit score will be put to risk in case you delay or miss on your payments.
Getting a mobile phone contract with a bad credit history is not impossible but managing your expectations in these cases is a necessity, as you won’t be able to get the best of mobile contracts with a high-risk factoring into the whole deal. So, make sure that you get the best plan for your circumstances while working on improving your credit score at the same time.