You will agree with me that a phone contract in this time and age is no longer an exception but the rule. With new phones being released at an unbelievable pace and the desire by UK individuals to keep up with the pace, buying on cash might prove to be a herculean task for many people. Add to that the fact that most of the new flagship phones are quite exorbitant and you understand why phone contracts are here to stay. Whether you are thinking of applying for a phone contract for the very first time or you’ve applied for a couple in the past, what we can all agree on is that there are indeed three possible outcomes every time you go for a phone contract.
As you probably know by now, the narrative has been that bad credit mobile phones are a free pass, a way through which individuals are assured or guaranteed of a phone contract their credit score status notwithstanding. While this is largely the case especially with guaranteed and bad credit mobile phones, the same cannot be said of a standard phone contract. The reality of the matter is, when you set out to apply for a phone contract, the following are the three outcomes you will contend with.
Acceptance with no quibbles
The first outcome is of course the possibility of your application being accepted outright because you’ve passed the credit checks. The thing is, phone contract providers in the UK are always seeking for ways through they can mitigate risks on their side. As such, credit checks are indeed a way through which they get to weed out applicants who are considered risky and do business with those that are considered profitable to the business.
Requirement for a deposit
In various instances, your application for a phone contract will not be accepted outright due to having a history of CCJs, arrears or even defaults. When you have a poor credit rating, the phone contract has two options at their disposal. One is to ask you to part with some deposit upfront as a way of showing goodwill that you intend to meet the end part of your bargain or decline your application all together. A deposit simply means that you are reducing the risk on the part of the provider and therefore the provider won’t have a reason to decline your application.
The provider flat out rejects your application
If you were not accepted out rightly or paid deposit upfront, the third outcome is flat out rejection by the provider. This is mostly due to a history of CCJs, arrears or tendency for defaults in the past. When your application is flat out rejected, you might consider applying for no credit check mobile phones, guaranteed phone contracts or bad credit mobile phones that tend to be lenient towards individuals with a poor credit rating.
In light of the above, in order to avoid rejection from the word go, consider paying a deposit upfront or better still, take time to improve your credit score prior to applying for a phone contract!