If you missed or delayed with repayments or defaulted in one of your debts before, you probably have bad credit. If you haven’t checked your credit status yet, you might want to do thIf you missed or delayed with repayments or defaulted in one of your debts before, you probably have bad credit. If you haven’t checked your credit status yet, you might want to do that now. There are free services online that should help you find out how you’re credit score is doing.
Moving on, bad credit can be a thorn in your life especially if you’re applying for a loan or a mobile phone contract. Because providers see bad credit as indication that you’re a high risk customer, they are more likely going to turn down your application. But don’t worry; you can still get a suitable phone contract if you follow the top insider tips below.
1. Choose Cheaper Handsets
If you want to get approved for a phone contract, you have to be practical. That means no latest handset for now. Instead, you should settle for the cheaper options as that will mean cheaper monthly fees. When providers see that you can afford your monthly dues and more likely to stick it out until end of term, they’ll be more open to take you in.
At least for now, don’t run after the latest handset. You will get there as soon as you can revamp your credit score.
2. Offer to Pay a Higher Upfront Fee
If you have substantial cash that you’re willing to let go of to get the latest handset then go ahead and offer to pay a higher upfront fee. Just speak with your provider and make the necessary arrangements. When you pay a higher upfront fee, this reduces the risk for providers. You are essentially covering a huge percentage of the handset’s cost thereby allowing the provider to avoid losing money in case you default on your payments.
Of course, we’re not saying that you’re planning to default on your payments. With bad credit in your history, you need to do something like pay a higher upfront fee as a consequence.
3. Get a Guarantor as Back Up
To further assure your provider that they will not lose money if they approve your phone contract, you can get a guarantor. The guarantor will serve as backup in case something happens that will prevent you from paying your dues. In other words, the guarantor promises to pay your dues in case you can’t.
For a guarantor to be qualified, he or she must be of legal age, a resident of UK and has good credit.
4. Consider Alternatives to Phone Contracts
If you’ve done the three tips above to no avail, it’s time to consider alternatives. You may think that a pay monthly contract may be the best option for you but there’s no harm in checking out other options too. This is especially true if you’ve been turned down a contract even after offering to pay a higher upfront fee, getting a guarantor and choosing the cheaper handsets.
Two popular alternatives to check out are the pay as you go and Sim only deals. Both are cheaper if it meets your needs to a tee.