Mobile Phone Application Guide
for people who have had Bad Credit
Bad Credit is a key factor in being refused a new mobile phone. Having bad credit can come about through a number of ways often without your knowledge. Mobile contracts like many other purchases require a form of credit agreement meaning mobile phone companies have to credit score its applicants.
If you are unsure about whether or not you have bad credit or a weak credit profile you can check your online credit file. There are number of agencies to do this and some offer a free trial which allows you to see why you may get refused for a mobile phone or any other sort of credit. Online credit checks are the easiest way to check your score: Experian & Equifax are the most popular companies to check your credit score with.
Select a Provider:
- Virgin Mobile - View more info >
- Vodafone - View more info >
- Three - View more info >
- Shebang Mobile - View more info >
Potential reasons for Bad (adverse) Credit:
Missed payments often trigger companies to mark your credit file with them which can then be accessed by other companies who may refuse you on the basis that past bills were not paid on time. This can include, but isn’t limited to: Credit Cards, Phone Bills, Mortgages, Household bills.
Lots of queries on your Credit File
Although querying your credit file is perfectly normal, excess credit scoring procedures from banks, credit card companies and other parties may make others more wary of offering credit if you have applied and potentially been declined by many other companies.
Non-payment of bills
If you have ever had a phone cut off or any utilities stopped through lack of payment this will seriously affect your credit score. This does not mean that you will get declined it may make your options slimmer as many companies see this as a bad risk.
Mistakes on your credit file
An example would be If you are known under several names as this could make whoever is credit scoring to be misinformed or worse not have any information about you to credit score your application.
How to fix Bad Credit?
1 – If you haven’t already sign up to an online credit check service to see what maybe causing a decline from a mobile phone company.
2 - It maybe that you have missed one or more payments in the last few years or it could be something more serious such as bankruptcy. All companies have different criteria for acceptance and any serious credit issues will take time to rectify. If you have had bad credit in the past but paid on time for around 12-24 months then some networks may consider your application (Try Virgin, and Shebang)
3 –If any information on your credit file or mobile phone application is incorrect it could contribute to a decline. Incorrect information can be changed on your credit report but you must use the correct information on any application for a mobile phone. If you check your credit score first you can use the information to match with any application, so all information is the same and easily matched.
4-Check you are registered at your current address on the electoral role as this is one of the main criteria for getting accepted on a mobile contract.
Bad Credit Approval Guide
If you have read about the reasons why you have been declined a contract then you are probably looking for the solution. There are several pointers to help improve your chances of approval and we have a range of feedback which supports our findings:
- Apply for a low end mobile phone - This lowers the risks to the network provider and will increase your chances of approval.
- Check your credit file before you apply to find potential errors – If nothing bad shows up proceed to applying for a mobile contract with your chosen network. View recommendation >
- Try our recommended networks. Our past bad credit customers found they understand your circumstances better. ( Virgin and Shebang)
- Sim Only Contracts - Use your existing mobile phone with a sim only contract. Having no outlay for a mobile will reduce the risk of the network which increases your chances of approval. (Virgin and Shebang are our recommendations)
- If all the above fails to help then you can view our “Alternative Options for Bad Credit Customers”
- Apply directly to the mobile phone network as they have more power to accept based on special circumstances such as bad credit or no credit at all.
- Often as a bad credit or no credit customer you will get “refered” which simply means additional terms and questions will be used to determine if you get approved.
Further Tips for improving Credit worthiness:
- Make sure you pay your creditors on time
- Try to manage any outstanding debts so that payments are made on time and regularly
- Don’t take on credit you don’t need as it adds additional searches to your credit file
- Use the same contact information and personal details on every application for either mobile contracts or other credit based products otherwise this may impact the decision.
- Apply for only a few separate mobile networks as again applying over and over again will add “credit searches” to your credit file and may impact your credit worthiness.
- If you are in a position to pay a “security deposit” then it is advised to accept as once bills have been paid on time for the term of the first contract the next contract upgrade will help you maintain your ability to have a mobile phone contract.