If you were to search the internet for mobile phone contracts for people with poor credit, you would find plenty of options. Many of the companies that specialise in this area advertise their mobile phone contracts as being offered without any credit check whatsoever; but think before you dive in. While this may seem like the answer to all of your problems, there is a price to pay – quite literally – for this type of flexibility.

There are many issues with a guaranteed mobile phone contract. To begin with, you are most likely going to be required to pay a large deposit up front. This can sometimes be up to the full price of the handset included in the contract, which for more recent models can run into hundreds of pounds.

You will also be on a higher tariff, meaning the price of your calls and text messages may be high. What’s more, you will find yourself on this contract for at least 18 months, and sometimes for up to two years. By locking you into this contract, the company is safer should you default, though it isn’t ideal for the customer. Who knows how far your credit file may be repaired over the course of that contract? It may even be enough to qualify for a standard contract with a regular provider.

You will also be limited to the choice of handset you can have with your contract. While you will not be stuck with a basic range of options, it is unlikely the latest phones and their associated gadgets will be available to you. You will also, should you miss a bill or have a direct debit bounce, be charged higher fees and interest rates than normal.

Suddenly, the promising idea of the credit-check-free guaranteed mobile phone contract is not so encouraging. Yet fear not; there is another way. While you may not be eligible for a standard contract with one of the main recognisable providers, the very same companies offer different terms for people with a poor credit rating. These may not be as fantastic as their standard advertised deals, but they are vastly preferable to the guaranteed contract terms and conditions. So before you go down the route of guaranteed contracts, check with the standard network providers to see what provisions and allowances they have in place for those with poor credit.

For a list of retailers who supply guaranteed mobile phone contracts, visit www.badcreditmobiles.com