These days’ mobile phones are more of a necessity than a luxury. Smartphones have become advanced. You have internet access and apps for doing anything on the phone. Many people in the UK who have a good credit history can finance a mobile phone easily with a credit card, but what if you have a bad credit history? Things can be a little difficult here. Purchasing a Smartphone without a credit card is not easy but it is not impossible either. You need to look for a company that offers phones on contract for bad credit and do not run a credit check.
Why do mobile companies run a credit check?
Credit checks are carried by phone companies to determine whether you can keep up with your payments or not. They want to see how reliable you are in paying your debts and managing the credit. If you have been paying bills on time then it shows that you will be able to pay your mobile phone bills on time as well. Hence it becomes easy to get the phone. However, if you have not paid bills on time then getting mobiles for bad credit is challenging.
The mobile company may think that you will do the same with their invoices as well. In such a scenario if they do offer a contract then you will get the worst rate.
Can I improve my credit score?
Yes, you can improve your credit score by paying off debts on time. You should take care of your monthly bills and use credit cards in a responsible way. It helps you get better options when it comes to contract phones. But, it takes time to build a good credit score and you cannot go without a phone for such a long time. In such a case you need to check for phones with bad credit where the phone providers do not run a credit check before offering you a phone.
What options do you have to get a phone?
- Pay more upfront: Many providers offer mobile phones for bad credit if you can pay more upfront while purchasing a phone contract. So, you need to have more funds to cover the down payment and you must check the length of the phone warranty so you do not lose the upfront investment in case the phone gets damaged. If you pay more upfront then your monthly payments will be lower.
Other benefits of paying upfront:
When you choose to pay more upfront for mobile phones for bad credit then it will help you rent an apartment and sign up for the utilities. The mortgage interest rates will also be less. However, if the credit is low enough then qualifying for a phone financing plan will not be possible for certain providers.
- Prepay for the entire phone: Some companies will ask you to prepay for the entire phone use. In these prepaid plans, you may not get a few things like unlimited data or talking time. These may be cheaper than a standard contract plan.
- Explore different options: Check for different providers and payment options that can help in identifying the best affordable plan. Some companies offer phones to customers who have a lower income. There are some providers who offer mobile phones with bad credit and you do not have to make an upfront payment as well. They welcome all types of scores and have a different way of processing contract phones to those who have bad credit. They do not run credit checks as well.
- Take the help of a consigner: You can consider reaching to certain friends who are close to you and trust you. They should have good credit and must be willing to consign on your account. You can join a relative’s plan and consider paying them each month.
These are some of the ways that can help you finance a phone if you do not have a credit card. You will be able to pay for your phone in easy and manageable amounts. Once you get a mobile phone contract it will be a great way to put a good impact on your credit rating by making payments on time.