Tips for Getting Bad Credit Mobile Phone Contracts
As you may have already noticed, the world today is dominated by mobile phones, and you probably won’t see a single person walking without one. As a steady means of communication, cellphones have ultimately become the constant companion to mankind.
Many people are quite comfortable with the idea of getting their mobile phones through a contract. The hardest part however is being entitled to one. If you’ve been failing on your credit reports lately, chances are applying for a mobile contract would be an extreme challenge.
Reasons Why You Would Want a Contract Phone
Opportunity to get the handset you want on an installment basis. Perhaps this could be the most interesting feature of a postpaid plan. With minimal or no cash-out, you can get your mobile phone and pay for it through a certain predetermined period, like 24 months.
Cheaper rates. Mobile contracts tend to have lower rates than pay as you go. You can take advantage of cheaper calls and texts especially if you opt for a sim-only plan.
No interruption. Another enticing feature with a contract is the convenience it brings. You don’t have to pay for credits everytime, and you will never run out of them, as long as you keep on paying your contract.
Prepare a Security Deposit
A deposit is not always a requirement, but if you’re serious about getting approved, you might want to prove it by preparing a security deposit. Your deposit will depend on the gadget you are applying for, and basically, the more expensive the device, the higher will the deposit be. The downside with this is that it could take a while before you can get your money back, like about a year or so, as you have to prove your credit worthiness for a particular period.
Do Not Apply For Expensive Phones
Basically, the more expensive the device, the higher the risk it carries for the provider. If you have a blemished credit report, you are seen as a high-risk customer, which even reduces your chances of getting approved for a line. So as long as you can’t afford a huge deposit or you’re still on the process of repairing your credit, it might be wise to forget about those Galaxies or Iphone’s, at least for now.
Apply Directly with the Network Providers
Each mobile network company sets a different credit check criteria, and while one may reject you, there are still others who can accept you, and the best way to do this is to apply directly with the network providers you want to deal business with. Since they will be the ones who will be taking the risk and who will provide you the service, you might have a better chance doing the negotiations with them than with a third party retailer who has limited control over your services.
Apply for Phones on Finance
Phones on finance could be a perfect alternative if you want a high-end smartphone but couldn’t get approved for a mobile contract, and you don’t have the cash to pay for it outright either. With financing, you can get the phone you want on an installment basis, just like how it is on a contract. However, phones on finance are sim-free, so if you want a postpaid plan, you might want to combine your financed phone on a sim-only contract. Phones on finance are of particular benefit if you want to replace your handset but are still under a contract.
Opt for a Sim-Only Contract
A sim-only mobile contract can even improve your chances of getting approved because you’re not signing up for the handset. If you’re not too particular about your device, or if you already have one that you like, this is a great opportunity to enter a service contract even if you have bad credit. Furthermore, this could save you a lot of money compared to prepaid especially if you are a heavy user, and may even help you improve your credit score as you keep on paying on time.
There might be a number of ways to get around a bad credit, but they don’t necessarily always work to your advantage. By working patiently on your credit score, you’ll find it easier to get the contract phone that you really want and at a more competitive rate.