Get A Mobile Phone Contract With Bad Credit History

When applying for a pay monthly contract, the required credit score is based upon the specific phone and tariff plan you choose. The more expensive the phone you choose and the higher the monthly line rental, the harder it is to be approved.

Choosing a more low-end handset on a cheaper tariff will make getting the contract more accessible even if you have a history of bad credit.

Until you improve your credit rating, the chances of you getting an Apple iPhone with a contract of £45 a month is virtually impossible. Steer clear from these expensive combinations and other packages which include free gifts.

Every mobile network operator has a different credit checking process and some networks are easier to be accepted for than others. Out of the 6 UK networks, we have researched that Vodafone, Orange and 3 Mobile have a slightly easier credit checking criteria.

You are by no means guaranteed for approval when applying with these networks, but you can increase your chances of being approved by applying with a low-end handset and cheap line rental.

Vodafone

Orange

3 Mobile

Applying direct with the mobile network operators rather than via third party retailers such as Phones4U and Carphone Warehouse is also beneficial. These companies usually have their own inhouse credit scoring systems making it slightly harder to be accepted.

SIM only contracts have an easier credit scoring criteria since a handset is not supplied with the contract.

In addition, SIM card only contracts operate on a short 30 day rolling contract instead of the usual 12 or 18 month period, resulting in a lower credit scoring procedure.

If having applied for a cheap handset and tariff with Vodafone, Orange and 3 Mobile, you are still declined, it is recommended you try again but with a SIM only contract.

After making regular repayments of your monthly bill, you will establish trust with the networks who will often allow you to upgrade to a free handset after a regular payment history is seen.

Although a SIM only contract may not be ideal, you have to remember that your options are limited when it comes to getting a mobile contract with bad credit. As the old adage goes: beggers cant be choosers!

SIM only benefits:

- Come with more minutes and texts than normal contracts
- 30 day rolling contract
- Keep your current phone number

SIM only contracts are a great alternative if you have been refused a pay monthly mobile phone because of bad credit history.

Because no handset is included with the contract, in the eyes of the network this makes you less of a 'risk' and therefore you are more likely to be approved for a contract.

SIm only contracts come with better inclusive calls and text each month compared to standard contracts, and also come on a 30 day rolling contract instead of the usual 12 or 18 months.

If you already have an existing handset then perhaps you should consider the SIM card only option?

Networks which offer SIM only

Vodafone - Recommended

Orange

3 Mobile

If you've ever been declined for such things like a mobile phone, loan or overdraft, you will know how frustrating it can be. This is especially true when all the lender will tell you, is that you have been declined and cannot tell you exactly why you were turned down.

Although each lender has their own particular particular criteria, there are a number of common factors which can affect your score. These factors can result in your application ether being accepted or declined.

Being aware of these factors can help you improve the chance of getting the finance you require.

Get a free copy of your credit report here


1. Previous Bad Credit History
Previous history counts towards around 30% of your score. Things like County Court Judgements (CCJ's), defaults or missed/late payments will have a negative effect on your application.

These factors will remain on your file for 6 years, but things like defaults/late payments will diminish over time. If you have been making regular payments in the last year, then this will great help increase your credi t scoring.

2. Not Being Registered On The Electoral Roll
If you have not applied to be on the electoral roll at your current address, then there is a high chance you will be turned down for your application. The thinking behind this, is that you are not thinking of becoming a long term resident at the address and lenders are very wary of this.

3. At Current Address For Less Than 3 Years
Lenders prefer giving finance to people with continuity and if you have been at your address for 3 years or more, then your score will be considerably higher than if you recently moved to your current address.

Having a number of different addresses in the last 3 years will have a negative impact, and this is especially true if you are a tenant rather than a homeowner.

4. New Job
Having a stable and long term job is as important as living at your address for a number of years. Lenders obviously prefer people who have a steady employment record as they believe this will reduce the likeliness of you not being able to keep up with payments. If you have been at your job for a number of years, this will give a great boost to your score.

However, having two employers in the past 3 years is not all bad news. If you have changed jobs recently and have a higher salary than your previous employment, then this will not affect the check.

Lenders may require copies of your previous pay slips depending on the item you are applying for. If you need replacements, the following companies can help:

Payslipsp60
Replacement Payslips
Mr Bateman

5. Not Having A Bank Account
If you have been with your bank for a number of years, then your credit score will receive a massive boost. Unfortunately, if you have recently opened a new account, or even worse, if you have no bank account, then this will have a negative impact.

It has been said that more than 1 in 3 people in the UK will face refusal for finance because of their mobile phone. This is according to research by the agency Checkmyfile.

Checkmyfile reported that after looking at 1000 consumer credit files, they found that 36.6% of consumers had mobile phone accounts with missed payments.

Barry Stamp of Checkmyfile.com, said he was shocked at just how many people had left themselves exposed to credit refusal in this way.

"Missed payments on mobile phone accounts are much more serious than most people realise..."

Read the full story here

Once you have managed to obtain a new mobile phone from the companies above, there is an easy way to get rid of your existing phone.

Envirofone.com is the UK's first mobile phone trading platform who will pay you to recycle your old mobile phones in exchange for cash.

If you have a look in your cupboards at home, chances are you will find one, or a few unused old mobiles gathering dust. With a few clicks of the mouse, you can earn anywhere between £20-150 per phone.

1) Visit the site and look up the model of your phone.
2) Get a quick quote to see how much your phone is worth.
3) If you are happy with the price, you will be sent some details in the post along with a freepost envelope to send your phone.
4) Once the phone is received and tested, you will be sent a cheque.

It has been reported that the UK singer Mika, who has sold over 2 million copies of his album recently, was declined for a mobile phone contract.

It seems that even wealthy popstars are not immune from being declined for mobile phones contracts.

Read the full story here

Knowing what is on your credit report can be very useful whether you have bad credit history or not.

The contents of your personal report can have a massive impact on whether or not you are given credit. Your credit rating may also affect the interest rate you are offered by lenders, which could lead to more costly borrowing.

You have the right to view the information contained in your credit report to make sure it is accurate. If errors are found, you are entitled to apply to have them corrected.

Get a FREE instant copy of your credit report here


You should check your credit report if:

-You are about to make a major credit application, such as for a loan, mortgage or car.

- You have denied for a credit card, loan, or other credit-based service.

- You want to check and guard against identity fraud.

- You are planning on getting out of credit and want to make the first steps to clearing your credit history and debts.

Pay as you go mobile phone networks are regarded as the most cost effective way of running a mobile phone because there is no contract and no line
rental charges although this is starting to change.

While it is unusual to see high specification handsets available on a pay as you go basis this has not prevented the new Nokia N82 from being released off contract in the UK.

The Nokia N82 is the latest addition to Nokia's premium N-Series of mobile phones and is available on O2 as well as pay as you go. It is expected that the N82 will also be released on other networks in the immediate future as new stock arrives in the UK and retailers are able to secure large numbers for connection to other operators. It is anticipated that this will give consumers plenty of options for owning this latest model high end mobile phone.

The criteria for credit used by UK mobile phone networks has left an increasing number of people unable to own a mobile phone on contract. This means that the only option they have is pay as you go or a Sim free phone. Phones without a Sim card are not connected to a particular network and this freedom means that you pay more for the handset.

You could be forgiven for believing that retailers are cashing in on these problems by making high end phones like the Nokia N82 available on pay as you go much earlier than has been the case. However, this could be a good thing for consumers with a poor credit rating as it increases their chances of owning a high end phone without the drawbacks attached to contract agreements.

Mobile phone bills could be placing consumers under increased financial pressure, new figures suggest.

Research by moneysupermarket indicates that an estimated one in five (20 per cent) mobile users occasionally, if not all the time, have received a demand for payment on their phone which is more expensive than they had originally anticipated. Meanwhile, it was suggested that the mobile phone sector generates more than 8.45 billion pounds in revenue every year from consumers who are on an uncompetitive tariff.

Overall, it was revealed that the typical Briton receives 166 free voice minutes and 133 texts per month as a part of their mobile phone or top-up package deal. However, it was indicated that the average consumer uses 23 voice minutes and 23 texts above the inclusive amount they receive in their price plans, meaning that they are paying up to an extra 130 pounds per year.

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You might be shocked to discover that people in the UK are bugged and spied on more than anyone else in the free world. What is more astonishing is that it is all legal.

An investigation carried out by www.people.co.uk, reveals that more than 800 organisations - from Whitehall departments to supermarkets - can check intimate details of our private lives.

For example, are you aware that details of every mobile call and text that we make are recorded and stored by phone companies for 12 months?

Mobile phones can also be used to track the movements of people. Even when the phone is switched off, mobile phone masts are still able to log the signals and this can be used to pinpoint exactly where you are or have been.

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