Browse Category: Bad credit mobile phones

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An overview of Bad credit mobile phones

When mobile phone contracts were availed for the first time in the UK, those with a poor credit rating found themselves in a precarious position. Just like loans, mobile phone providers were only keen on approving those individuals with a good credit rating. Those with a poor credit rating found themselves on unfamiliar grounds as their efforts to get approved for a phone contract came to naught. In fact, back then, providers would only approve a phone contract for a person with a poor credit rating only if they paid a hefty upfront deposit or if they had a guarantor with a good credit history.

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The situation has however changed over the years if the mushrooming of providers offering bad credit mobile phones contracts is anything to go by. In fact, nowadays getting approved for a phone contract with bad credit is as simple as taking a walk in the park. Days when a person had to contend with credit checks and one rejection after the other are long gone. You simply need to choose the right contract, meet the requirements, apply, get approved and enjoy the perks that come with it.

Simply put, bad credit mobile phones were initially designed for people with a poor credit rating. However, this does not mean that these contracts are entirely for those with a poor credit rating as you will learn when you click here. Anybody can apply for these types of contracts although it would be foolhardy for a person with a good credit history to apply for them owing to the perks that they offer. Essentially, bad credit mobile phones have fewer benefits as compared to ordinary mobile phone contracts.

However, those without a prior credit history have found bad credit mobile phones instrumental especially as relates to building up a credit history. Mobile phone contracts are wary of individuals with no credit history as they are unable to tell whether they are financially responsible or not. Bad credit phones therefore are perfect to UK individuals with no credit history as well as those with a poor credit history. With that said, what are some of the outstanding features of bad credit mobile phones? Well for one, bad credit mobile phones tend to have fewer perks as compared to standard mobile phone contracts.

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What this essentially means is that those individuals who are under this type of contract will enjoy fewer data bundles, fewer text messages as well as fewer minutes in any given month. Another important aspect about bad credit mobile phones has to do with the fact that you will be locked into the contract for a prolonged period of time as compared to standard ordinary contracts. Generally, most providers tend to set the minimum contract length at 18 months. The interest rates for bad credit mobile phones are also steep and as such individuals are forced to part with more monthly than they would on ordinary mobile phone contracts. There is also the requirement to pay a deposit upfront before approval. This is simply to mitigate the risks on the part of the provider should a person default on payment. With that said, there is no doubt that bad credit mobile phones have been a blessing to all those with a poor credit rating.