Bad Credit History Mobile Phones
If you have a bad credit history, it can be difficult to find a provider who will allow you a mobile phone contract. All of the major networks now run a credit search before setting up a contract, and their terms are often strict. However, it is always worth asking.
T-Mobile, for example, offer a SIM-card only deal which costs around £15 per month. If you keep this account in good order for six months, they can upgrade you to a full contract with a one of the latest handsets. There are plenty of cases of people with a poor credit rating being allowed a contract mobile phone with one of the major providers; it all depends on an individual’s credit file and their particular areas of strength and weakness.
So do try, and networks such as T-Mobile and Orange have the best reputation for allowing contracts to those with poor credit. Regular searches on your credit file can actually damage your credit rating, so try these networks first and if they say no it is unlikely you will have any joy with the major providers.
If you do try these networks and still cannot obtain a contract, there are further options still. One to look at is a company called The Utility Warehouse. Utility Warehouse charge an upfront fee for the cost of your first calls, but this stipulation aside, their mobile phone contracts are available without a credit check. They don’t offer the very latest in mobile phones, but there is plenty to choose from and you should find something you like. The tariff is compatible with the major mobile phone networks. You will still need a UK bank account and a debit card to register with the Utility Warehouse and pay your bills, but they are an excellent option if a standard phone contract is not forthcoming.
If you do not have a UK bank account or debit card, the final option is asking a friend or family member with a good credit rating to obtain a contract on your behalf. You can use your bank account details to pay the direct debit, or set up an arrangement with them to meet the cost of the bill. While this is a useful option, use it carefully; should you default, it isn’t just your credit file you’re harming, and the repercussions of this on your relationship could be difficult.
If, with a poor credit rating, you do manage to obtain a mobile phone contract then it is well worth remaining with the provider. The longer the contract goes on, the better impact it will have on your credit file, as well as saving you the hassle of trying to find something new. At the end of each contract, you should be able to negotiate a new contract and a handset upgrade, and continue improving your credit as you do so.
