Before you apply for a mobile phone contract with the retailers listed on this website, it is important that you are aware of the different types of bad credit mobile phone packages on offer. Knowing the difference can not only save you money, but can also help you avoid being locked into a lengthy contract commitment.

There are two type of packages available:

• Low Credit Score Approval Contracts
• No Credit Check Contracts

Low Credit Score Approval Contracts

When you apply for a contract phone, mobile networks will run your application details through a credit check which will determine whether your application is approved or declined. Your individual credit score is based out of a possible 1000 points, with 750/1000 being the average credit rating in the UK.

More importantly, each network has a different credit score approval rate- so if you fail a credit check with one network, you may well be approved with another.

We at BadCreditMobiles.com do not know the exact credit score approval rate for each individual network, but we do know that some networks have a higher approval rate and some are more lenient with a lower approval rating.  Networks such as Vodafone and Orange are certainly more strict about who they choose to approve, however, T Mobile and 3 Mobile both have a low credit score approval figure, and are more sympathetic and flexible when it comes to providing contract phones to people with a bad credit history.

We recommend that you apply for a phone with either T Mobile or 3 Mobile before considering the no credit check mobile phone contracts.

No Credit Check Contracts

As mentioned above, it is your own individual credit score which determines whether you are accepted or declinded for a contract phone – so wouldn’t it be great if you didn’t need to go through a credit check at all?

There are now a handful of phone retailers who deal specifically with people with poor credit rating and can provide you a mobile phone contract with no credit check required. However, although this may sound tempting, you should only ever apply for these types of contracts as a last resort.

Why? Like many companies which specialise in providing products to people with adverse credit rating, you will find that you have to pay a lot more in fees and charges for the privilege of being accepted for credit.

If you have a poor credit history and have tried applying for items such as like a credit card, loan or mortgage, you may have found that although you may be accepted, you have to pay a lot more compared to someone with a healthy credit rating. This is also true with mobile phone contracts.

Although you are virtually guaranteed for acceptance, you will find:

• You are charged higher monthly line rental fees, calls and texts, and usually have to pay an administration fee on application.
• You are tied into a longer contract period
• You have a more limited range of handsets to choose

Which is best for me?

Although no credit check contracts may sound appealing, the cheaper and better alternative is to apply with a network which has a low credit score approval rate first. If your credit rating is so severe that you are turned down by these networks, you should apply for a no credit check contract as a last resort.