3 Mobile
Out of all the major phone networks in the UK, 3 Mobile have always been more tolerant to people with bad credit history. Ever since they were first established in 2003, many people with poor credit history have been successful in getting approved – despite being refused elsewhere.
Although they do not guarantee approval, you stand a much better chance if you apply for a less expensive tariff and choose a lower value or free handset. We recommend that you take a look at their new Skypephone handset. The Skypephone works like a normal phone and features onboard software which also allows you to make free calls to other Skype users.
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Affordable Mobiles
Affordable Mobiles can help provide a 30 day SIM only contract designed for people with a bad credit history. You can also choose from two Nokia mobile phones to use with your SIM card contract although the models are basic and low end models. However, if you are more concerned about getting a pay monthly contract than you are about getting a shiny new top of the range handset, then Affordable Mobile is a good option.
Affordable Mobiles also offer a range of pay monthly contracts that come with free gifts including Xbox 360, Playstation 3, LCD TV and a Sat Nav system. Although these free gift packages are very appealing, you should note that these types of contracts are often much harder to be approved for if you have a less than perfect credit rating.
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Vodafone
Vodafone have a good acceptance rate for people with bad credit history.
Vodafone now offer their £10 SIM a month SIM only contract as an alternative if you fail to get approved for their contract phones. It comes as a SIM card only without a handset along with a number of temporary restrictions on your account.These include no picture messaging, no international calls and no intertnet access.
Once you have paid 2-3 regular months bills, these restrictions can be lifted and you can ask to be upgraded to a standard contract with free handset upgrade.
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Orange
You may be surprised to discover that Orange offer bad credit contract phones, but out of all the major UK networks, they are one of the more lenient and sympathetic when dealing with people with bad credit history.
Orange have a lower credit scoring approval rate compared to other networks such as O2 or Virgin, and although you are not 100% guaranteed for acceptance, you can vastly improve your chances of getting a contract phone if you avoid applying for top of the range handsets like the Apple iPhone or Nokia N97.
It is important that you apply directly on their website as it allows Orange time to manually review your application. If you are initially declined you may be offered a SIM only contract as an alternative plan.
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5 Tips To Get Help Getting Approved
Choose A Cheap Handset On A Low Monthly Tariff
Did you know when you apply for a mobile phone contract, you are credit scored on the specific mobile phone and tariff plan you have chosen? The more expensive the handset and the higher the monthly line rental, the harder it is to be approved.
If you are suffering from bad credit history it is therefore advisable to apply for a less expensive “no frills’ handset on the cheapest monthly line rental to ensure the best possible chance of being accepted.
Only those with an excellent credit credit history are likely to be approved for top of the range handsets like the Apple iPhone on a £40 per month tariff, so steer clear from such high value combinations and other packages which include expensive free gifts.
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Apply With Orange, 3 Mobile Or Vodafone
Each mobile network operator has a different credit scoring criteria – with some being more easier to be approved than others.
Although we do not know the exact credit checking requirements for each network, from our research we know that Vodafone, 3 Mobile and Orange are more lenient when it comes to providing pay monthly contracts to people with bad credit history compared to the other networks.
Although you are not guaranteed for approval by applying with these networks, by opting for a low cost handset on a cheap line rental, you should ensure you have the best possible chance of being accepted.
It is best to apply direct with the networks online, rather than via third party high street stores such as Phones4U and Carphone Warehouse, who merely act as middlemen and have no influence on the credit checking procedure.
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Consider SIM Only Contracts
SIM only contracts are much easier to be approved by the networks because no handset is supplied. Although a credit check is still required, the credit scoring criteria is lower than standard contracts that come with a free handset. If you already own a handset you like, then SIM card only contracts are ideal if you are concerned about your credit score.
If you are declined a contract by Vodafone, Orange or 3 Mobile (after you have applied for a low cost handset on a cheap monthly line rental), it is highly recommended you try again 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.
The networks we recommend are Vodafone SIM only or Orange SIM only.
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Be Prepared To Pay A Deposit
If you are declined for a pay monthly contract, network operators may require an upfront deposit before you are approved for your application.
This is a understandable request by the mobile operators, and if you can afford it, it is recommended that you pay the fee which is then returned 6-12 months into your contract depending on which network you apply with.
The deposits required will vary between mobile operators but are usually worked out by multiplying your monthly line rental cost by 3-6 months. For example, opting for a £15 per month tariff may require a deposit of between £90-180.
Deposits are usually only required when you opt for a pay monthly contract with handset.
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Remember To Check Your Credit Report
Each time you apply for a pay monthly contract, your details are passed through a credit check so that network operators can access whether you are able to meet regular monthly repayments. It is therefore very important that your personal credit report is upto date and accurate since this will be the basis on whether you will be accepted or declined.
Studies have shown that many credit reports contain inaccuracies that can harm your credit rating, leading to rejections when you apply for loans, insurance, or a mobile phone contract. These errors are usually the result of human clerical mistakes so it is important that you check all your credit files and monitor them regularly.
There are now many places where you can check your credit report online, but only a handful of places offer them free of charge. Experian offer a 30 day free trial which enables you to check your credit report in minutes.
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Remember That Beggers Can’t Be Choosers!
If you are suffering from bad credit history, you need to be aware that you do not have the same level of choices compared to someone with a healthy credit rating.
Naturally, credit lenders of items such as credit cards, loans, mortgages and of course mobile phone contracts, are understandably more cautious when it comes to providing credit to those who have a history of non-repayment.
Although it is not impossible to get a mobile phone contract If you have a poor credit history, it does make it a little harder to be approved. You may have to make certain sacrifices before being accepted, so be realistic as to what can be achieved.
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Bad Credit Mobile Phones
These days, a mobile phone is an essential item. But just try getting one with bad credit – it can seem impossible. If your credit score is too low, a simple credit check will reveal this fact to a mobile network. And networks don’t look too kindly at people with bad credit scores since it’s an indication that they may not be trustworthy customers.
So if you have trouble with credit, you will likely have to visit several different mobile companies before you can find one that will accept you and your credit history. However, if you do get approved for a contract, this can be an excellent way to begin rebuilding your credit, which will make you eligible for all sorts of great mobile deals down the road.
You have several choices when hunting around for the perfect bad credit mobile phone deal if you have a low credit rating. One is the option of trying a network that doesn’t require you to undergo a credit check. On the plus side, you’ll probably be approved for a contract no matter how terrible your credit history. But on the downside, the contract will probably cost you a lot more than the standard mobile plan. You will likely be forced to pay much higher tariffs and fees for things such as calls and text messages. But this can be an option for anyone whose credit is beyond repair.
Another option is to search for a company that has plans specifically targeted to people with bad credit. Such plans exist, and their rates will be lower than contracts that don’t require a credit check at all. However, if your score is too low, you may get refused one of these contracts as well.
The benefit of a plan tailored to someone with a low credit score is that you will still likely be able to pick from the best and latest handsets. But be sure to pay all your bills promptly or that may wreck your credit score entirely. It’s wise to pay your bill each week using a credit or debit card. Or try setting up payments online to make it easier. Just don’t forget to pay the bill.
Paying by debit is a great option for someone wanting to repair their credit. Debit cards remove the money from your bank account right away. It’s quick, easy and unlike a credit card you can’t spend money you don’t have, so you can’t damage your credit score.
Whether you are struggling with debt, or you’re bankrupt, insolvent, or faced with a CCJ, bad credit can have some terrible and unforeseen consequences. But it is possible to turn your credit rating around with a bit of effort. The key is to pay your bills right away. If you do this, you should see your credit rating rise
