However you take it, the undeniable fact is that bad credit mobile phones offered a sense of relief to the clique of individuals in the UK who have had long standing issues with getting approved for a phone contract due to the status of their credit score. In the past, a UK individual with could not get approved for a phone contract. Back then, approval was purely hinged on a person’s good credit score. The downside was that people with bad credit had no choice but to contend with one rejection after the other. The only way a person with a poor credit rating could be approved for a phone contract was if they tagged along a guarantor or if they paid a huge deposit upfront. This was of course very taxing and challenging at the same time.
Finding a willing guarantor or the huge upfront deposit was a herculean task and most people were resigned to the fact that getting approved is akin to climbing a mountain. Fast forward to today and the landscape has completely changed. As we speak, there are thousands of UK bad credit mobile phone contract providers who’s sole aim and objective is to romp in as many bad credit UK citizens. It doesn’t matter how bad your credit score is or how many times you’ve defaulted in the past. You can apply now for a mobile phone contract with bad credit and get approved without any challenges.
However, prior to applying for a bad credit mobile contract, it’s imperative that you understand a number of things.
Bad credit mobile phone contracts have fewer perks/benefits as compared to standard mobile phone contracts. What this simply means is that you will enjoy fewer number of minutes, texts and data bundles in a month as compared to those on standard contracts for people with a healthy history. Additionally, you might not be eligible for promotions or upgrades as and when you want.
It’s not uncommon for a number of providers to ask you to pay a small upfront deposit prior to being approved for a bad credit mobile phone contract. This is usually designed to cushion the provider against the risk of default. The deposit you pay is yours and will be refunded at the end of the contract provided that your account with the provider is in good standing.
Ordinarily, the standard minimum contract period for individuals with a healthy contract is 12 months. The same does not apply for those with bad credit as most providers make it a requirement for individuals to be locked for a period not less than 18 months. The downside is that this makes it difficult for a person to switch before the 18 months lapse.
Upgrade in bad credit contracts is not guaranteed. Your account has to be scrutinized before you can be allowed to upgrade to a plan of your choice. Most of the times, you can only be allowed to upgrade if you have been paying in good time without defaulting.