If you have a poor credit rating and have been around for quite some time, then you know how difficult things were in the past when it came to mobile phone contract approval. Getting approved for a phone contract if you had a poor credit rating was an exercise in futility, a tall order. Mobile phone providers in the UK did not glance at a phone contract application twice if credit checks determined that they had a less than average credit score. The situation was further compounded for individuals with a history of defaults as it was as if getting approved was a long shot by all means. The situation has completely changed with the introduction and subsequent popularity of bad credit mobile phones.
To the uninitiated, bad credit mobile phones from the sound of the name are mobile phone contracts specifically designed for individuals in the UK with a poor credit rating. It was created out of the need to make people feel equal when it came to approval of mobile phone contracts. Essentially, a mobile phone is no longer a luxurious asset as it were back in the day. Nowadays, mobile phones are considered an asset and this explains why over 93% of the UK households own a mobile phone. In this regard, bad credit mobile phones were availed out of the need to ensure that those with a poor credit rating did not feel discriminated and that they equally enjoyed the benefits that come with having a mobile phone contract.
How do bad credit mobile phone differ from ordinary standard mobile phone contracts?
For starters, it is important to note that a person cannot be approved for an ordinary standard phone contract if they have a poor credit rating. What this essentially means is that one needs to have a good credit history before they can be approved for such contracts. If credit checks bring out information to the contrary, then the logical thing to do would be to apply for either bad credit mobile phones or guaranteed mobile phone contracts. The other distinctive thing between the two types of contracts is of course the perks or benefits. People on bad credit mobile phones tend to enjoy lesser benefits as compared to those on ordinary contracts.
Bad credit mobile phones have fewer texts, calls and even data bundles as compared to ordinary contracts. Consequently, bad credit mobile contracts are more expensive in terms of interest rates as compared to ordinary contracts. Considering that individuals that get approved for bad credit phones are considered high risk, providers tend to attract a high interest rate. Last but not least, deposits or upfront payments are mandatory for individuals with a poor credit rating. Providers require that individuals pay an upfront payment as security prior to approval which is normally refunded at the end of the contract. You can find more info at PhonesWorld’s site.
Are there any benefits of bad credit mobile phones?
Of course! The fact that no credit checks are done is one of the greatest benefits of bad credit mobile phones. While essentially credit checks are done, the difference is that the findings are not used to deter a person’s application. There is always the option to upgrade to a better option if you are consistent and meet your monthly obligations without any fail.