Smartphones are an important part of our lives. It offers so many benefits and it is a prerequisite for many jobs as well. In this technologically revolutionized world, without a Smartphone life is not just incomplete, but it is hard to stay in tune with the current trend. If you ever had a contract mobile phone then you know how important it is to make your bill payments on time.
If you miss the payments, it reflects on your credit report and getting credit for anything in the future becomes quite challenging. If you have bad credit and need a contract phone then this mobile phone buying guide will give you a lot of important information. So, let’s dig deep into it.
Why are credit scores important?
Credit scores speak a lot about you. These scores tell how worthy you are when it comes to making payments on time. It helps the lenders decide whether you should be offered credit, contract phones, mortgage, etc. or not.
How are these scores calculated?
Credit scores can go up and down and this fluctuation of scores depends on a variety of factors. If you have not made any payments on time and not registered on the electoral roll or declared bankrupt then your credit report can be affected badly. The way credit scores are calculated differs among credit reference agencies and lenders. You just need to keep in mind that making all your payments on time is vital for getting a good score, else the credit rating will be affected big time.
Getting approval for a mobile phone contract is simple?
Qualifying for mobile phones on contracts in the UK is an overwhelming process because a credit check is an integral part of it. Companies do not approve contract phones if you have a low credit rating and many get disappointed due to this. If your credit rating is high then getting approval for a contract phone becomes easy.
Rules have changed regarding credit rating for those who have low credit score:
Earlier, many contract phone companies had stringent rules for those with low credit ratings. However, the worldwide credit crunch has brought some effective changes to this process. So, those who have bad credit can take advantage of this. Credit ranking is not a rule anymore, but it is an exception.
Why are there changes in credit rating rules to get a mobile phone?
Now the credit score assessment is not the only way for mobile phone companies to choose customers. Offering a little relaxation in credit check rules has helped the mobile phone companies to earn a lot of profit. Many customers who do not have good credit ratings are offered bad credit contract mobile plans. However, there are some limitations to it. In most of the contracts, mobile phone users do not get international call facilities and MMS.
Is it easy to get any handset for those who have a low credit score?
Those customers who have a low credit score can buy contract phones online but there are limited options when it comes to the selection of handsets. These limitations can be marginalized when comparing some great benefits of bad credit score phones. There is no need to deal with enormous paperwork when applying for these phones.
Will the mobile companies run a credit check and what all is in this process?
The process is quick and there is no need for a credit check as well. All you have to do is submit an address proof when applying for the best phone deals for bad credit online. You may have to make an upfront payment which is a guarantee against your low credit rating. The amount you will pay will be adjusted in your first bill.
Can I get pricey smartphones?
There are some retailers who offer mobile phones without running a credit check but they do this for cheaper handsets only. If you choose a Smartphone that is very expensive then it will be subjected to a credit check or you need to make an upfront payment of a high amount. If you get a deal where you are offered an expensive handset and that too without a credit check then read the Smartphone contract carefully because it can be a scam.
What if you keep making payments on time in spite of a low credit score?
If you keep making payments on time then you will come in the good books of the contract phone companies and they will revise your services. The provider will feel that you are a reliable customer and give them long term business so things will be more flexible for you. To enjoy these benefits you need to make your bill payments on time at regular intervals. The best features will be added to the phone deal you have chosen depending upon your credibility.
You should check different mobile phone deals:
The contract mobile phone deals differ from company to company and if you want a better deal then you must do a comparison. You should choose a company that matches your needs and budget. There are no credit score assessments systems and no credit check systems in place for those who do not have a good credit rating.
Is it necessary to make an upfront payment?
If you want to avail a mobile device you will have to make a security deposit. There are some companies that offer phones on no upfront payment and no credit report score. They welcome all types of credit scores. You will have to check which company will entertain applications from you. Every company has different rules regarding the limits. So, you can sign up with some companies and then choose the one which meets your needs precisely.