Mobile phone contracts are said to be a great option for people who are financially struggling. Because of its set monthly limit, you can budget your expenses wisely if you are carefully. However, not only are mobile phone contracts economical, they are now the best option for people with bad credit.
Bad credit is proof that in your past, you have neglected a financial responsibility. Whether it be an unpaid loan or overdue credit card bills, bad credit is definitely a black stain on your reputation. Lenders, insurance, and service providers tend to veer away from bad credit clients because they are thought to be unreliable. So would bad credit mobile phones change that?
If you search online, you’ll see a lot of services offering guaranteed bad credit mobile phone contracts. This means that your application will be accepted regardless of your credit score. Are these deals too good to be true? Let’s find out.
No Credit Checks
Upon closer inspection, bad credit mobile phone contract providers seem to care less about your past financial mistakes, and focus on your present ability to pay. So as long as you have income, these providers will consider your application. Some providers do perform credit checks, but have extremely lenient procedures. More than anything, they conduct the credit check to see which handsets can be given to which clients.
A word of caution though, nothing is ever without a catch. Yes, bad credit mobile phones do not care about your credit rating, but of course a business is still a business. Providers still need to protect themselves in case you run away from your monthly payments.
One thing that we’ve observed with bad credit mobile phone providers is that some ask for an initial deposit. This definitely lowers the risk factor on the provider’s side. The initial deposit varies depending on how new your chosen handset is. For old models, a deposit may not even be required.
Keep in mind that this is not an easy solution. Providers are still hesitant to hand over new handphones to people with bad credit rating. If you really want a guaranteed “yes” on your application, then go for an older handset.
Also, be prepared for extremely basic monthly plans. Of course, they won’t give out unlimited calls and texts to bad credit clients freely. It would be commercial suicide.
How To Get Around It
If you simply want an old handset to use for your communication needs, the offers provided by bad credit mobile phone providers might be okay. However, if you want the newest handsets and feature-loaded monthly plans, you might need to wait a while. Start with the lowest plans and average handsets, and then gradually work your way up. Trade-ins and upgrades are a natural feature of mobile phone contracts and bad credit mobile plans are not exempted. Give it a few months; pay your bills on time and they might start trusting you enough to give you options for the latest handsets and better monthly limits.
Finding Bad Credit Mobile Phone Deals
If you’re having trouble looking for the best and cheapest bad credit mobile phone deals, there are a lot of services on the web that do the searching for you. Services like PhonesForAll cater to clients with bad credit rating. Give these sites a try and they’ll match you with providers who can give you guaranteed mobile phone contracts.