To be in a position where you can’t avail a mobile phone contract or get access to credit facilities is something that is nightmarish to most people. From time immemorial, the emphasis has been on the need for UK citizens to have a good credit score. In fact, you simply need to scour the internet to appreciate how having a good credit score is fundamental. There are millions of articles talking about the need to have a good credit score, the effect of having a bad credit score and so on and so forth. Those with a good credit score find the going easy while applying for a phone contract or a loan while those with a bad credit score are left to lick their own wounds.
For a long time, having a bad credit score was akin to having a criminal record. Most UK providers were unwilling to approve a person’s application for a mobile phone contract if they had a bad credit rating. The result was rejections every now and then to a point that those with a low credit score felt second class. In as much as the situation back then painted a grim picture, the unveiling of mobile phone contracts designed for those with a low credit rating ultimately changed the mobile phone contracting landscape forever.
Application and subsequent approval for a phone contract was no longer a preserve of UK individuals with a good credit history but rather an endeavor that everyone could partake of irrespective of their credit rating. No credit checks mobile phones, bad credit mobile phones and guaranteed mobile phone contracts were all unveiled with the sole aim of ensuring that those with a less than average credit score also enjoyed the trappings that come with having a good credit score.
While the names might differ slightly, the common thing among all of them is the fact that there are no credit checks. In this regard, a person does not have to worry about the status of their credit score when applying for bad credit mobile phones, guaranteed mobile phone contracts or no credit checks mobile phones.
In reality, bad credit mobile phones have indeed been a saving grace especially for individuals who in the past were unable to avail a phone contract because of their credit score status. A person can nowadays apply for a bad credit mobile phone and get approved within 24 hours. However, in as much as bad credit mobile phones have been beneficial to those with a poor credit score, there are also some disadvantages associated with them.
For one, as compared to ordinary mobile phone contracts, bad credit mobile phones attract high interest rates which essentially means that those who ultimately get approved for them end up paying high rates than those on standard mobile phone contracts. Secondly, the perks associated with bad credit mobile phones pale in comparison to those associated with ordinary mobile phone contracts designed for individuals with a good credit score.
Thirdly, a number of providers at times require that you pay a security deposit before you can be approved for a contract especially if you have a history of defaults, arrears or CCJ. The contract length for a bad credit mobile phone is also slightly longer compared to ordinary mobile phone contracts. Most providers set the minimum contract length at 18 months which of course makes it tricky especially if you want to switch before that period expires.
On the flipside though, bad credit mobile phones have been instrumental in turning around the fortunes of those with a poor credit rating. It has accorded them an opportunity to slowly or gradually improve their credit score over time provided that they meet their monthly obligations.
To sum it up, if your credit score is nothing to write home about and you need a mobile phone contract, don’t hesitate to apply for a bad credit mobile phone as it does not discriminate you based on the status of your credit score.