What are Bad Credit Mobile Phone Contracts?

If you're hoping to get approved for a phone contract but has bad credit getting in the way, it might be more practical to consider the alternatives such as pay as you go (PAYG) or Sim only contracts.

With PAYG, you are not hooked to a lengthy contract which means you don't have to worry about fixed monthly fees. With Sim only contracts, you'll only get the Sim card and no handset which means your fixed monthly fee is significantly lower than if you apply for a pay monthly contract.

By going for alternatives to traditional phone contracts, your chances of getting approved are higher all in all. This is because the risks have been lowered for providers hence they are more willing to take a chance on you.

Now if you're still hoping to get approved for a phone contract despite bad credit because you need the handset and a cheaper rate on your phone services, this is where bad credit phone contracts come in.

Bad credit phone contracts, as the name suggests, are the type of phone deals that are especially designed for people with bad credit. These are offered by some providers online in the hopes of helping consumers who have struggled and have been rejected for a phone contract elsewhere.

Just like traditional phone contracts, bad credit phone contracts offer users a phone tariff alongside a handset you can hand pick. There is, however, one hitch. While easy to get approved for since there are no credit checks run on your application, you may need to prepare yourself to pay a higher fixed monthly fee than if you apply for a traditional phone contract from major providers. The higher monthly fees providers’ way of compensating the high risks they are taking for customers with bad credit.