Ready to upgrade your phone or switch contracts?
Choosing the right deal for you is a big decision. Most people will do a little bit of research to make sure they invest in the right phone for their personal communication preferences, their favorite apps, and any brand bias they may have.
And this entire process can become even more complicated if you have a bad credit score.
Poor credit is a problem for countless people worldwide. Research shows more than one-quarter of consumers with a credit rating has a score lying somewhere from 300 to 600, which is generally viewed as being ‘bad’ or ‘subprime’.
A low credit score can make securing loans or mortgages much more difficult, unfortunately. And this has the power to hold you back in key areas of life, from taking out a loan for a new car or putting your feet on the first rung of the property ladder.
In some cases, it can restrict your choice of phone providers, too. Not every brand will be happy to sign you up with a contract for a top-of-the-line smartphone — but that doesn’t mean none will.
You can still get your hands on the latest smartphones. And in this post, we’ll show you how.
Can I Get the Latest Smartphones of 2020 with Bad Credit?
Can you imagine life without a smartphone?
Many of us are old enough to remember depending on landlines only, with their cumbersome cables and limited range. You had to stay within a certain radius of the socket if you didn’t want to pull it out of the wall, and tying yourself up was a real threat (just ask this poor guy):
And if you remember that, then you remember the excitement that came with being able to carry your own handset with you all day long for the first time.
Mobile phones meant privacy, convenience, and — of course — text messaging for those times when you just couldn’t be bothered to speak.
Now, decades later, smartphones are essential lifestyle companions, with 79 percent of adults in the UK owning one. We spend more than two and a half hours on our phones each day, whether this is for personal or professional activities.
And there’s so much choice today, too. Even if you have bad credit.
No matter how low your credit score is, you can find fantastic budget smartphones (with the best camera, if that’s a major factor for you) on affordable contracts. Reliable providers want to set up as many contracts as they can to generate revenue, so it doesn’t make sense to turn prospective customers away simply because they have a lower credit score than others.
But it’s important to clarify that your choice of handsets may be a little bit smaller than for those with fantastic credit ratings. In most cases, though, you’ll be able to find the latest smartphones of 2020 at reasonable rates with contracts that suit you.
What phone contracts can I take out with bad credit?
If you’re wondering which contracts are available to you based on your credit score, the good news is there’s a solid selection out there on the UK market. Even if you’re asking “what phone contract can I get with a credit score of 203?”, you’ll find a good deal online.
Often, these include unlimited data, calls, and texts to help you stay connected all day, every day. And there are plenty of models available, including the Samsung Galaxy S10, Huawei P30, Apple iPhone 11 Pro, iPhone 11, and more. Each of these has proven immensely popular with consumers worldwide, and include the latest features for high-end performance.
You’re not cut off from taking out a phone contract because of a low rating, and you’re not doomed to use PAYG (pay as you go) deals for the rest of your life if you find them less cost-effective than contracts. With our service, buyers with all credit scores are welcome to apply for a deal with no upfront payments required.
Why are Phone Contracts for Bad Credit So Popular?
One of the main reasons mobiles for bad credit are so popular is their affordability.
Lots of us are feeling the financial pinch today, in one way or another. The current situation has transformed life for so many of us, and money might be tighter than it has been in quite some time.
And this means you may worry that your credit rating could take a slight dip, even though credit agencies have assured customers that credit scores won’t be affected by ‘payment holidays’.
But it’s not just present world events that make bad credit phone contracts so appealing. People who have had bad credit for years come to depend on the contracts they have access to as a way to help keep at least one of their monthly outgoings as low as possible.
Phone contracts are just one of the many financial commitments we have today, on top of rent or mortgage, electricity, internet, gas, streaming services, tax, even television licenses. Daily life costs money, a lot of it, and finding a highly-affordable phone contract helps to keep your outgoings under slightly tighter control while giving you access to a fantastic smartphone.
And that can make a positive impact on your wellbeing in the long run.
Phone contracts for bad credit tend to be incredibly simple to understand, too, which is crucial. You don’t want a complicated deal that leaves you uncertain what you’re getting in exchange for your money or without a clear idea of additional charges you might incur.
You want a streamlined, user-friendly contract provided by a team that knows how to speak in jargon-free terms and explains the essential details with full transparency. Getting the latest smartphones of 2020 isn’t just easier when you find a reliable provider: it’s a genuine pleasure.
How Do People Get Bad Credit and How can You Avoid it?
Nobody wants bad credit, yet it’s not always easy to avoid. But when you know the most common causes of bad credit, you empower yourself with a better ability to manage your finances wisely and keep your score at a healthy level.
Fortunately, it’s more straightforward to get an outstanding budget smartphone when you find the best phone deals for bad credit online. However, building a good credit score can help to make other areas of life easier, such as qualifying for a mortgage on a home, renting private properties, securing a loan to start a business or buy a car, and more.
So, let’s explore the common causes of bad credit:
Signing up for a credit card that doesn’t suit your finances
Banks and lenders might offer you credit cards from time to time. And if you get caught up in the excitement of having all of that instant money that you don’t need to pay back until later, you may snatch a card right out of their hands.
But if you dive into a credit card agreement without doing your research first, you could end up with a real financial burden.
Credit cards have different limits, fees, and interest rates. Some will work brilliantly for you and your current financial situation. Some won’t. If you can’t afford to pay your card off each month, you could be in debt for months or years.
There are a number of comparison tools online designed to help you find the right credit card. Take advantage of them to avoid harming your credit score.
Being declared bankrupt
You may not be amazed to see that declaring bankruptcy can impact your credit rating. This is a declaration that you’re unable to cover your debts and looking for relief from some or all of them. It’s often an unpleasant processes, and can reduce your credit rating for a long time.
This is also the case if you choose an IVA (Individual Voluntary Arrangement), an agreement between the lender and borrower when debts can’t be paid.
Borrowing more than you can afford
Taking out a loan from a bank or lender can be a real lifesaver. But you have to be careful to only ask for an amount that you can realistically afford to pay back over time.
At the very least, you should be capable of covering the minimum payments alongside your other outgoings each month. Otherwise, there’s a danger that you’ll be bringing more debt into your life when all you want is some extra money to get you through a rough patch or pay off another debt.
Applying for credit too frequently
Sadly, making applications for credit can have a negative effect on your credit rating. Every time you apply to a bank or lender, this is recorded on your report, even if you’re not approved.
This is why it’s so important that you only apply for credit that you’re actually eligible for.
Avoid these common causes of bad credit to help keep your score at its best. Remember: while you can choose from a fantastic selection of bad credit contract mobile phones, cultivating a good or great rating will help you access different types of credit in the future.
Can I Apply for a Mobile Phone Contract Without a Debit Card?
If you’re looking to apply for a mobile phone contract but don’t have a debit card, you may be wondering whether you’ll actually be eligible for any phones with bad credit at all.
In most cases, you will need a debit card or credit card to set up monthly payments on your contract. Without either, it’s obviously difficult for providers to receive payments each month.
Fortunately, securing a debit card is fairly easy. All you need to do is open a bank account with a UK bank (such as Halifax, Santander, etc.). Their team will help you find the right account for your personal financial situation, outgoings, and goals. Once you have a debit card, you’ll be able to start looking for phones with bad credit.
If none of this works for you, a PAYG phone will be your only option. And this means paying for a handset outright, which can be eye-wateringly expensive if you’re looking for the latest smartphone options of 2020. That’s why contracts are so popular.
Choosing the Right Bad Credit Contract Mobile Phone for You
One of the most challenging parts of signing up for bad credit score phones is choosing just one model from the exciting range on offer.
The latest smartphones are beautiful, sleek, user-friendly devices packed with all the essential apps to stay connected and have fun. You can play cutting-edge games, do some work at any time, any place, watch movies, host video chats with friends or relatives around the world, and more. It’s amazing.
But make sure you look for a phone that suits your budget and includes all of the features you consider crucial. And it’s vital to consider the type of contract you sign up for, too. For example, do you want it to run for 24 or 36 months? Do you want to pay nothing or a small amount of money upfront?
Take the time to look at the different features each phone has. You might insist on 5G connectivity if you rely on mobile data more than Wi-Fi, while a good amount of internal storage is crucial if you choose a phone with no slot for an SD card. Particularly if you love to download high-end games or store a lot of movies to stay entertained on the go.
Plus, there’s the network provider to think about. Are you an O2 loyalist, or are you happy with EE or Vodafone?
If this all sounds complicated, don’t worry. It’s not. But at Mega Mobile Deals, we’re dedicated to helping you find the right phones on contract for bad credit. If you want to learn more, just take a look at our range of devices and get in touch with us today!