Mobile Phones

shop-nowA low or bad credit score can prove to be quite a hurdle to getting accepted for a mobile phone contract. So what are the ways to get around the problem?

Fortunately, some companies offer ways for you to deal with the problem of a bad credit rating. One way is for you to pay a deposit which is then held by the company  – effectively as security in the event that you default on your payments once the contract is underway. If, after the first year, the account is in good standing and there hasn’t been any problem with missed payments, the deposit is generally refunded.

Alternatively you may wish to look for a mobile phone contract provider who assesses your ability to pay not on a full credit check but on looking at your bank statements for the last three months to check that you have a regular source of income.

Alternatively you may wish to consider purchasing a pay-as-you-go mobile through an online catalogue. This has several advantages. Many catalogues do not require a full credit check. You can purchase a top of the range mobile on credit and so long as you meet your payments, you will build up a respectable credit rating – thus widening your credit options in the future.

With some companies though, it is an absolute requirement that full background checks – including a comprehensive credit check, are carried out. Some companies will allow a co-signatory (particularly in the case of a young person with no established credit history). Even in cases where co-signatories are not allowed, you may wish to consider the option of having the account put into the name of a close friend or family member with a good credit history.