Useful tips when going for bad credit mobile contracts

Looking for a phone contract when you have a history of bad credit can be tricky. It is more probable than not that you will be turned down by most providers. And, that is a bitter pill to swallow. Being turned down for a mobile contract because of a poor credit history is a frustrating experience. After all, we all know how much of a necessity technology has become in today’s world.

Unfortunately, a credit check is equally important as it is the tool that is used by most carriers to determine how likely it is you will be able to keep up with payments. So what will do if you have bad credit yet you want that contract so bad? Worry not, as here is a compiled list of useful tips that will help you improve your chances of approval.

Know your usage

When applying for a bad credit mobile contract, determining your usage is very important. You need to get good value for your money and the best way to do this is by knowing your monthly usage in terms of minutes, texts and data usage. You do not want a situation where you are paying an arm and a leg for a contract that is not helping you at all. For instance, if you will be browsing more than you will call, then you need a plan with more bundles than minutes. Taking a different plan will see you paying extra money every month which could even worsen your credit situation. Ensure you bargain for a deal that will best suit your needs.

Offer to make a down payment

Remember, the greatest fear of every provider is risk. And the riskier a deal looks, the higher the chances that they will reject it. No provider will get into a contract that may go wrong. That is why you need to reduce the risk involved by offering a down payment especially if you want a flagship killer. By doing this, you will be showing your provider that you are committed to the contract and even though your credit history says otherwise, you are able to support your payments throughout the contract.

It is important to note that this amount may vary from one provider to another and may also depend on the type of phone you want. Just ensure that you enquire before making payments. Additionally, some companies agree to it while others don’t so make sure you know this too.


Provider’s reputation

It goes without saying that a bad credit contract provider that has been in the business for a long time is more stable. Unlike one who just started and is still finding their bearing, they are more reliable and can help you get a better deal. Remember, you do not want to get into a contract that will prove to be more of trouble than relief. Therefore, always opt for a trusted firm that has over the years not only met but exceeded its customer’s expectations.

Payment options

This is a serious consideration to make when looking for a bad credit mobile contract. Ensure you go for a provider that offers numerous payment options including cash payment plans. You do not want to be stuck in a payment plan you are not comfortable with. Remember, the main goal is to improve your credit record and any delayed payments will not auger well for you.

When making an application, ensure you ask all the difficult questions and clearly spell out your own expectations. Avoid the situation where you enter into a contract only to find hidden clauses and charges. Not only will this be an inconvenience, but it will also be frustrating to you considering your financial standing.

Improving Your Credit Score

Mobile phones are becoming more and more expensive each day. Because of this, very often mobile carriers will want to perform a credit check before they approve you for a contract. These are expensive contracts, and they want to make sure that you have a good financial history before they give one out to you. If you have a low credit score, this could keep you from getting the type of phone and data plan that you want. While there are other options for you in the mean time, it would be a good idea to start working on your credit score so that next time around you can get the plan that you want.


To start improving your credit score, there are a few things you should look at. The first thing you’ll want to look at is how much debt you are in. Whether you have taken out loans or used a credit card a lot, a large amount of debt reflects poorly on you. Make a list of all the different debts you have, and list them from the ones with the highest interest rates, to the lowest. Start trying to pay off the higher interest rates first so save yourself some money. Even if you can make only a slightly larger payment each month, it will help you in the long run. If you have many different small debts, consider consolidating them into one loan to make it easier to manage.

Besides paying down your debt, you’ll also want to look at how you are making these payments. On time payments are key for having a good credit score. Even just one missed payment can drastically reduce your score, so you’ll want to avoid this at all costs. Make sure you budget ahead of time to ensure that you have enough money to pay it, and also write down when the payment is due to make sure that you don’t forget. The longer you go without missing a payment, the better your score will be.

This bring us to our next tip – make sure you have a long credit history. Your credit score is designed to show how reliable you are over time, so if you are just starting out, or if you are just now making improvements to your credit file, it may take some time before you have a decent score. Just keep working at it, and be sure to keep up good habits. If you can do this for an extended period of time, you should see your credit score go up.


Lastly, be careful how you use your credit cards. You want to try and find a happy medium between overspending and keeping it locked away. Try to not use more than seventy percent of your credit limit each month, but also try to spend more than thirty percent. This shows that you are capable of using credit given to you wisely, and that you can be trusted with it. Also be sure to pay off as much of your credit cards as you can each month. Outstanding debts that are too high will harm your score.

While these aren’t the only things you can do to improve your credit score, they are a good start. Remember that this will take time, so keep at it. If you are still having trouble with your credit score after trying some of these things, you may need to talk to a professional financial adviser. But once you get your credit score sorted out, you’ll be able to do a lot more things, including getting a great mobile phone and plan. Good luck!

Cut Your Phone Bill in Half

Do you know that majority of people waste a ton of money on their phone bills? You might even be one of the statistics. That’s no surprise either. In this day and age when we can’t live without our smart phones, we are bound to overspend on our phone bills if we’re not careful. This is despite the fact that mobile phone carriers are now already offering “unlimited” phone services. Majority of mobile phone contracts nowadays either have unlimited texts or call or both which are great news for heavy users.

With these services at users’ fingertips, you’d think that phone bills should be more favorable for consumers. Unfortunately, that’s not the case at all. Majority of users are still paying more than what they should.

If you want to slash your phone in half, the common recommendation is for you to choose a cheaper phone. It’s sound advice but it’s not an easy one. Why sacrifice when you can have the best of both worlds, right? You don’t really have to forego your iPhone or Samsung handset option if you keep the guidelines in mind below when shopping for a phone contract.


Getting it Right from the Start

In order to dramatically cut your phone bill in half if possible, you need to get it right from the start. There’s no need to sacrifice services or your handset choice. But you do need to carefully pick the right carrier to enjoy huge phone bill savings.

To choose the best carrier to meet your needs at a price that’s both reasonable and affordable, you’ll have to do your homework thoroughly. Research your options and compare plans. If you’re up to it, you might want to create a spreadsheet. The one with the lowest priced plans wins, naturally.

The Secret to Lower Phone Bills

Because there are now unlimited services, the advice where you cut unnecessary features and services from your plan wouldn’t really apply anymore. But there’s another and more effective way to reduce your bill significantly.

Opt for family plans. These plans typically offer massive discounts which you can take advantage even if you’re single. As long as the bill goes to one person or address, you can still avail of the plan by either joining your extended family or inviting a friend or two to qualify.

Though looking for a friend, family member or relative who want to join you in the plan may be inconvenient, remember that the payoff is going to be massive. Depending on your carrier and the number of person included in the family plan, you may save maybe £400 to £500 per year on your phone bill. Imagine that. That’s a lot of money you can avoid wasting if only you take advantage of the family plan.

Here’s How to Get a Mobile Phone Contract with Bad Credit History

Bad credit history is a nasty problem. When you have one, expect a ton of rejections when you’re applying for a loan, credit card or even a mobile phone contract. Poor credit rating always gets in the way because it is basically a reflection of your reliability as a borrower.

Most mobile phone contract providers, for instance, refuse approval for people with bad credit because of the high risk. Fortunately, there are simple ways to overcome this problem. When you badly need a mobile phone, below are five ways to get approved despite bad credit history:

Opt for a Low Cost Handset

Now is not the time to dream about owning the latest iPhone or Samsung handset. When you have bad credit, you don’t have as much freedom as those with good credit when it comes to your handset choices. If you want to increase your chances for approval, the best route to take is by opting for the cheaper and lost cost handsets.

Mobile phone contract providers may have a different set of criteria when checking your credit rating but it also usually depends on the type of phone you choose. In most cases than not, applying for a high end handset when you have bad credit only leads to disappointment.

Check out Several Providers

As mentioned previously, different providers have different approval criteria. When one provider rejects your application, don’t lose hope just yet. Remember that there are several providers in the UK. If you check out each one, you are likely to land a good deal that is tailored for your needs and circumstance. They key is to keep on trying and applying until you get approved.

Some providers may reject your application on the basis of your credit rating but they may also offer you a different plan. When they do, you can go ahead and grab it. The plan won’t have the perks of a traditional mobile phone contract plan but it is a good place to start if you want to improve your credit rating. Once your score gets better, you can always upgrade your plan to something that you want.


Offer to Pay an Upfront Fee

At the end of the day, all mobile phone contract providers want is to earn a profit. The reason why they reject people with bad credit is because of the higher likelihood of them losing money.

Considering what providers want, you can increase your chances of approval if you try to lower the risks. One way to do that is by offering to pay an upfront fee. If your dead set on choosing a specific mobile phone, the upfront fee will guarantee that your provider will already have something if they approve your application. Speak with your provider to know about the required upfront fee for the phone that you want.

Bring a Guarantor

Aside from paying the upfront fee, you can further get around your bad credit problem by bringing a guarantor along when you complete your application. The guarantor just like the upfront fee will lower the risks for the provider. But even better, the guarantor guarantees that they have someone to run after in case you default with your monthly dues.

For a guarantor to qualify, he or she should be of legal age, a resident of UK and must have good credit. Your provider may also ask for you and your guarantor to provide proof of income. So long as you can provide the required documents, you can almost always expect for quick approval.

Consider a Sim-Only Contract

When all else fails, there is yet another option that you can consider. You can always go for a Sim-only contract. A Sim-only contract, as the name suggests, offers you a Sim card complete with a bundle on phone services but without the handset. Because there is no handset included in the picture, the monthly fee is going to be significantly more affordable.

Sim only contracts basically are ideal for people with bad credit. It’s low cost and easy to get approved for. But more importantly, the contract gives you an opportunity to improve your credit rating. If you’re consistently on time with your payments, chances are high that you’ll be able to apply for a better mobile phone contract in the future.

Credit Card Tips for First Timers

When used properly, credit cards are valuable financial tools that can come to the rescue when you’re faced with an emergency. You can use for groceries, medical expenses, shopping and more. It also helps build or rebuild credit scores. But at the same, credit cards also have their downsides.

When you’re applying for the first time, it pays to weigh both the pros and cons of the financial tool. Also important is to choose which credit card product to go with. With a wide range of choices available in the market, choosing the best for your needs can be tricky. But this guide will help you narrow your options well.

Are you ready?

You just turned 18 which means you’re now legally an adult and you can finally apply for your first credit card. You might be very excited but hold your horses. Just because you’re old enough to get one doesn’t mean you qualify for a credit card. Remember that using a credit card can be a tricky business. You’re probably already familiar with the horror stories credit card users have shared over the years.

So before anything else, make sure that you’re actually ready for the responsibilities that owning a credit card entails. Don’t become another statistic that drowned in debt because you don’t know how to wisely use a credit card to your advantage. Plan ahead and thoroughly before applying for your first credit card.

Pre-application planning

When you’re a first time applicant, you’re often put at a disadvantage. Credit card providers aren’t always keen to approve applicants like you because you have no credit history yet.

Before you shop around and complete any application, one of the first things you should do is to check your credit score. You can do so for free at popular credit score service providers online. This way you’ll know exactly where you stand and gauge your chances for approval.

In addition to checking your credit score, understanding the credit card situation for young adults will also help. When you’re under age 21, for example, you may be required to have a cosigner and you must also have verifiable income to qualify. You must have either a part-time or full-time job to prove your steady source of income. If you don’t have any, another option is to ask someone, maybe your parent or any relative, to open a credit card joint account with you.

Choosing Your Card

If you’re sure that you’re ready for a credit financially and emotionally then the next step is to check your available options.

Credit card options in the market are wide and varied. There are offers for first timers that have 0% introductory periods. For these cards, you can charge purchases without any incurred interest for a specific time period. There are also options that are designed for people who have limited to moderate credit history. To get approved fast and easily, you should look for options that are tailored for your circumstance.

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Where to Apply?

There are many places to apply for a credit card. When you’re a first time applicant, the best places to look into include banks, retail departments and other major credit card issuers.

If bank is your first option, you are better off applying from one where you already have a checking or savings account. If you have a good financial history and you don’t have any overdrafts, your bank is likely to approve your application immediately.

Another good place to look into is a retail or department store. Compared to banks, these places have easier approval process but in exchange, they charge higher interest rate. If you have this card, make sure that you avoid carrying your balance from the previous month to the next as the interest can be steep.

Other than banks and retail stores, you can also go first to major credit card issuers in the country. If you’re a student, most providers offer student credit cards. This is a good place to start when you’re just starting out to build your credit history. Just make sure that you check the interest rates and annual fees before you complete an application.

Bad Credit & Mobile Contracts

Consumers like to pretend otherwise, but mobile phone contracts are a financial contract. Moreover, just like any financial contract, the companies that offer them use credit scoring to ensure that all potential customers are viable investments.

In the UK, Equifax, Experian and Callcredit are the credit ratings agencies. These companies collect and compile all financial information regarding you. Every financial decision you make goes onto your credit file.

Bad financial decisions like paying rent late, using payday lenders or exceeding your credit limits appears on your credit file as evidence of serious financial mismanagement. Unfortunately, this tells phone companies that you’re a poor investment.

Girl With Mobile Smart Phone

Companies, particularly those that are giving you an expensive technological piece of kit with an antenna—your mobile phone—and expecting you to look after it, need to assess you for your risk. A company can’t afford to give phones out, if there’s no chance they’re going to get the money for it back. Therefore they use credit files to work out the risk of each and every customer.

Hence, if you have a bad credit rating, then you’re a risk and a mobile phone network provider isn’t going to trust you. You might not pay for the phone because you run out of money, if you have a bad credit score. You might not pay for the calls, the data, and the texts you use each month because you’ve defaulted on your debts, if you have a bad credit score. These examples are how mobile phone network companies read into your credit file.

Unfortunately therefore, if you find yourself with a bad credit file, it’s very unlikely that you are going to be able to obtain an excellent, all-inclusive, cheap contract that comes with the iPhone 401, or whatever number we’re on these days. However, there are alternatives open for you to consider:

  • A bad or no credit mobile phone contract service
  • Guarantor mobile phone contracts
  • Prepaid packages
  • Sim-only deals

You can’t escape bad credit; you can only improve it over time. However you can adjust to cope with it and get a mobile phone contract in spite of it.



What Causes a Bad Credit?

Numerous individuals in the UK have a poor credit record. What is the cause? Well, there are numerous causes as to a poor credit record. Many people seek to know how to repair their credit record but fail to first ask what causes a poor credit record. This thus leaves them with little clues as to how they can avoid making their credit record poor again. Here are some of the major causes of a poor credit record. Learning this will help you maintain a good record for a long time.

Credit card debt

Credit card debt is one of the leading causes of poor credit records. High credit card delinquency results in poor credit rating. Many individuals do not know how to maintain their credit cards balances at an acceptable range thus a bad report. Don’t just keep spending when you have no idea how you will make timely payments of the balances.

High cost of living

We are living at a time when the cost of living keeps rising. Failure to factor in this may lead you into taking up debts that may soon become impossible to maintain. There is no need to keep credit cards for luxuries. If your cash cannot allow you to have luxuries, quit using credit for luxuries as it will dig you deeper into the debt world.

Erasing Bad Credit

Late payments

Late payments on credit automatically result in a poor credit rating. You should be timely in paying your debts. Do this by setting your credit recovery date to one when you have received your pay to avoid late payments. Do not also overlook any payment at any date.

Observing credit limits

You should observe your credit limits and never exceed them. Going overboard means that you may not be able to make all the payments in good time thus resulting in a poor credit. Exceeding your limits will also reflect in your credit report thus leading in a poor record. It also leads to your paying higher monthly fees on the credit.

Your credit past

Your past credit record has a reflection on your future credit record. You should consider your past history and always strive to maintain a good history knowing that it will have a bearing on your future credit history.

Understanding the Credit Report

Credit reports differ from individual to individual. However, it is these reports that creditors use to assess whether an individual is credit worthy or not. While others have a blemished credit rating, others have been able to maintain a good credit record. How is it that a bad credit rating appears?


It is as a result of bad credit behavior that one gets a poor credit rating. Bad credit behavior may come about intentionally or unintentionally. Failure to pay for your credit as expected leads to poor credit rating. With each late or missed payment, your creditor is forced to report the lapse to the credit bureau agency. A series of late or missed payments eventually lead to a poor record of payment. While others may miss making timely payments intentionally, others are victims of their circumstances. It could be that one fell sick and could not operate their businesses as usual, one may have been terminated from work and has no pay to service the loan, or one may have been declared disabled and unable to earn a living anymore. The credit agencies do not keep a record as to why the loans were not repaid as agreed thus not giving poor credit with exemptions. A poor record remains a poor record regardless of its trigger.

Good credit behavior is not always a guarantee that you will have a good credit rating. Some may easily reason that just because they never borrowed a loan in their life time, then they have a good credit rating. Well, this is not true. For the fact that you have never borrowed means that your have a non existent credit history. This does not make matters good for you. When you are seeking to find a loan, you will find it difficult to get a loan. Even if you can afford to pay back a big loan amount, the creditor can easily decline the loan offer since you have no borrowing record from before.

If you have borrowed before but are not a frequent borrower, you are also not in a good place either. You may have had one or two debts but they were spaced and you may have taken up small amounts. When you will be in need of a huge loan, the lender will not be ready to risk giving you the huge amounts. Lenders have a graduation curve that they would like to see their clients use. They may not readily let you graduate from a baby loan to a huge long term loan since this may not be an offer that you are prepared for.

If you have a poor credit record, lenders can easily decline your loan. There are online loan offers that give credits to individuals with a bad credit record. However, these are usually costly and may need your use of guarantors who have a good credit rating or collateral for the loan. If you are able to provide the needed, they can provide small loan amounts depending on your financial disposition letting you pay for the loan as you repair your tainted credit history.

Credit report with score