If you have bad credit, many cell phone companies will turn your application for a phone credit down. The main reason for this is that you are seen as a high-risk entity and, therefore, big companies fear losing money by working with you. However, bad credit should not be a stumbling block to getting that slim, shiny, and top of range phone that you have been dreaming about. Here is what you can do to make your dreams happen.
- Correct your credit score with reference bureaus
The first thing to ask yourself after being denied the contract you wanted is whether the credit score reflects the truth. Because of the many stakeholders involved in credit scores computation, it is not uncommon to find your report filled with mistakes. For example, you might have cleared paying a loan and the financial institution delays or fails to remit the clearance report to the credit reference bureau. Therefore, it is critical to first check with the bureau to correct any inconsistency before you considering reapplying for a phone contract.
- Identify a no credit check mobile phones dealer
Though you have been denied a contract, it is important to appreciate that different cell phone companies have many varying conditions and one might fit your situation. To get these, look for good contract phones no credit check dealers and compare their various deals. These dealers work with various cell phone companies and will give you options on what to do to get the phone you want. For example, you might be advised to raise some deposit, utilize the employer cell phone company employee discount plan, or use a friend to co-sign the contract.
- Go for a SIM only mobile phone contract
While your credit rating might be poor, the truth is that no cell phone company wants to lose a client. Therefore, they encourage you to join them on a SIM only contract so that they can gauge your creditworthiness over a period of time. For example, Three requires clients with bad credit to take SIM only contracts of about £8 per month for about 6-12 months before being approved for the smartphones they want. Other companies that require you to take a SIM only contract include Vodafone, BT Mobile, and O2.
- Start working on your credit rating
No matter how you look at it, bad credit is not healthy for you. Well, today it is the mobile phone companies disappointing you, and tomorrow might be a different party altogether, perhaps a high street bank. Therefore, you must start working on a method of reducing your bad credit rating so that you can get the contract phone of choice in the coming months.
Though this might appear monumental, it is not as difficult. Here are several methods of improving your credit score.
- If you have several loans especially on your credit cards, consider consolidating them into a single bank loan that has a far lower interest rate. This way, you can clear all small loans and consistently focus on clearing the consolidated credit without being late.
- You can also review all the loans you have, pay the minimum required amount, and put the extra money into clearing the one with least the balance. In this way, you will finish clearing the loans faster than you think.