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What You Need to Know About Bad Credit Phones
What You Need to Know About Bad Credit Phones

Applying for a phone contract with bad credit under your belt is not going to be easy especially if you want the latest mobile phone releases. Because of your poor credit history, your credit worthiness as a customer is also affected. If carriers think that they might lose money with you, they’ll obviously reject your application. This is what happens to majority of people with bad credit issues.

To cater to this portion of the market, most carriers in the UK are now offering bad credit phone deals. These are deals especially created for people who can’t get a traditional phone contract otherwise. If you’ve ever been refused a contract plan, this is where bad credit phone deals come handy. But before you sign any deal, here’s everything you need to know about said deals.
One of the best things about bad credit phones is the minimal requirement. If you want a bad credit phone, you just need to be of legal age and a UK resident. You don’t have to worry about your poor credit rating getting in the way of your application anymore. Carriers offering this type of deal do not run any credit check on customers. As long as you can provide proof of income, your application is good as approved.
Contract Term
Bad credit phone deals work just like traditional phone contracts. You’ll have to choose your handset first then your phone bundle at a fixed monthly rate. In most cases, the contract term runs for 24 months. Your phone’s cost is spread over 24 months in addition to your fixed monthly rate for your call, text and data services. Like with any other contract, it’s imperative for you to pay your bills on time to improve to avoid any complications.
Handset Selection
While bad credit phones are easily available online and approval is super fast, there are a few downsides. One of which is the limited handset selection. Because the monthly cost is higher for high-end handsets, offers for handset choices are often limited to cheaper and older models. If you want the latest iPhone 6S, for example, you might not be able to avail it with a bad credit phone deal. What you can do instead is choose a cheaper handset then upgrade it to the latest Apple or Samsung phone once your credit score improves significantly. To check out the best bad credit phone deals today, head over to PhonesWorld.
The cost of your monthly phone bill will depend on your mobile phone choice and bundle plan. If you opt for a more expensive handset then it follows that your monthly bill will also be higher. You’ll also have to be aware that there are hidden fees and related charges that can spike your bill. Since we are talking about bad credit phones, expect rates to be relatively higher than if you have good credit. To compensate for the high risks, carriers offering bad credit phone deals often have higher fees associated to said offers.
Is it for you?
Despite its cost and limited handset selection, there’s no denying the fact that bad credit phones are very popular in the UK. With the no credit check rule, customers with bad credit are applying without qualms. Approval is often guaranteed and is confirmed in 24 hours or less. But before your get yourself hooked to a lengthy contract, it’s very important to ask yourself if a phone contract is really for you or not. If not, then it might be best to check out other types of deals such as SIM only or Pay As You Go.

Who are Guaranteed Phone Contracts For?
Who are Guaranteed Phone Contracts For?

Have you ever been refused a phone contract because of bad credit? Many customers who also have a poor credit rating are experiencing the same thing. If you don’t want to get rejected again, this is where offers such as guaranteed phone contracts come handy.

Guaranteed phone contracts, as the name suggests, are phone contracts with approval guaranteed. As long as you meet the eligibility criteria, your application is often always good as approved. The best part about these deals is that your credit score doesn’t matter anymore. There are no credit checks required hence approval is super fast.

Without the credit check, guaranteed phone contracts are perfect for customers with bad credit. If you can’t get a contract plan anywhere else, this type of deal is a handy alternative. It works just like any standard phone contract. You can choose your mobile phone with your contract plan that covers your monthly call, text and data usage.

But while accessible online and easy to avail, guaranteed phone contracts have a few disadvantages. Because there’s no credit check involved, the rates may be higher than if you’re a customer with good credit. Providers may spike the cost of the phone contract to deal with the high risks. As the customer with bad credit, you wouldn’t have much choice but to shoulder the costs. Handset offers are also limited for people with bad credit. If you’re hoping to apply for the latest iPhone 6S, you might want to forget about that for now.

Considering the pros and cons, guaranteed phone contracts are not for everyone. In fact, it’s only best as a last resort. Make sure you check out cheaper alternatives to phone contracts before you apply for a guaranteed phone contract. If approved, make sure you always pay your bill on time to help improve your credit score.

Find the Best Phone Contracts in the UK
Find the Best Phone Contracts in the UK

With the plethora of phone contract deals available in the UK across different networks, choosing the best deal to suit your needs is going to be tougher than usual. Just because one carrier is advertising their offers to be the best doesn’t mean you should grab it right away. There are key considerations to keep in mind if you want to nail your phone contract application. To find the best phone deals, here are things to consider:


Before you go ahead and start shopping around, it would help to set your budget. How much can you afford to spare for the fixed monthly fee for your phone bill? This is a crucial question you need to answer prior to signing any phone deal if you don’t want any financial snags in the future. Set your budget so you can narrow your choices from the get go.

Phone usage

Whether this is your first time applying for a phone contract or you’re in the process of upgrading to a different plan, knowing your phone usage per month is imperative. One of the reasons why most subscribers are overspending on their bill is because they’re hooked to a wrong plan. Estimate your call, text and data usage so it’s easier to find the right deal for your needs.

Contract Term

Phone contracts in the UK are available in 12, 18 or 24-month terms. The most common is 24 months because the monthly rate is usually cheaper but it’s not always the best choice considering the length of the contract. When choosing your contract, make sure you are comfortable with the length of the term. Otherwise, you might find yourself missing payments and hurting your credit score in the end.

Contract Cost

Your contract’s cost is another major factor to consider. If the cost does not match with your budget then that means only one thing. Keep looking and comparing phone deals until you find one that offers just the right balance of contact term length, cost and bundle plan.

Hidden Fees

Finally, you’ll also have to consider hidden fees. One of the sneaky ways carriers ensure their profitability is by inserting hidden fees into your bill. You need to be vigilant by reading the fine print. Find out more details about hidden fees to avoid a shock on your bill. Call customer service about such fees if necessary.

Why Choose a Phone Contract
Why Choose a Phone Contract

With news of increasing phone contract rates in the UK, it’s no wonder why more and more experts are discouraging customers from getting a phone contract. Many are saying that you are better off with a pay as you go deal. You’ll have better control of your phone bill and you’re not tied to a lengthy contract as well. What they failed to carefully consider, however, is your phone usage.

While phone contracts can be expensive, it can also be a money-saver if you chose the right combination of handset and contract plan. Provided that you applied for the right plan suited for your needs and budget, there are a number of advantages you can enjoy including the following:

Choice of the handset that you want

To be able to choose the handset that you want remains one of the best advantages of a phone contract. When you can’t afford to pay for a new phone upfront, getting a phone contract is the best way to leverage the cost of the phone. You can pay for it over 24 months, the typical contract term in the UK, at a fixed monthly rate. Phone choices are also wide and varied including the latest high-end releases from your favorite brands such as Apple and Samsung.

Cheaper rates on call, text and data

Included in the monthly bill is your contract plan for your call, text and data usage. Aside from your handset, you’ll also need to pick a bundle plan. A bundle plan includes allowances for your call, text and data. Some deals offer unlimited calls and texts suited for heavy users. If you’re a light or average user, however, there are also a wide variety of plans to choose from.

Choosing the right plan is crucial if you want to save money in the long run. Make sure you know your needs in order to find a plan that is completely in sync with said needs.

Exclusive promotions, freebies and incentives

When you’re a phone contract subscriber, you also get access to regular promotions and other incentives. With competition getting tougher among carriers, they try to outdo each other by coming up with irresistible promotions to lure customers and hook them for good. Some carriers, for example, may offer a free gift along with your free handset and bundle plan. You won’t enjoy the same offers if you’re not hooked to a contract.

How to Improve Your Chances for Phone Contract Approval
How to Improve Your Chances for Phone Contract Approval

Other than your personal loan applications, your bad credit score can also affect your mobile phone contract applications. Major carriers in the UK are less likely to approve your application because you pose a high risk on their profitability. Does this mean you shouldn’t apply for a phone contract anymore? Not exactly! If you really want a phone contract because it suits your needs; there are some things you can try to offset your bad credit issues. Here are some things you can do:
Don’t choose a high-end handset
You may have your eyes set on the latest high-end iPhone or Samsung Galaxy but this is not the time to prioritize your handset choice. Because you have bad credit to consider, it’s best to stick with a cheaper handset for your phone contract. This way, your monthly fee will be significantly cheaper. A cheaper monthly fee means fewer risks on your carrier thereby increasing your chances for approval.

If you do get approved for a phone contract, make sure you pay your monthly bill on time. Once the contract is up, your credit score should see some significant improvements and you can upgrade to a better phone at this point.

Consider paying an upfront fee

If you have cash you can spare, it wouldn’t hurt to offer to pay an upfront fee. Some high-end phones have required upfront fees while most phones are offered for free. Either way, you can pay an upfront free more than what is required to convince your carrier that you’re not a high-risk customer. By paying the upfront fee, it will significantly lower the cost of your monthly bill consequently improving your chances for approval.

Find a guarantor to back your application

If you don’t have cash you can use to cover for the upfront fee, you can always try to bring a guarantor to back you up with your application. With a guarantor to co-sign the contract, the risks are pretty much negligent on your carrier’s end. Even if you can’t pay the monthly phone bill, your carrier will have your guarantor as fall back. The guarantor is required to pay for your liabilities as per the credit agreement.

Not all carriers may accept a guarantor. Make sure you get in touch with customer service for more info. As for your guarantor, you need one who is a UK resident, of legal age and has a good credit score.

Choose a SIM only deal

If you have a decent handset that is working perfectly, you might want to consider getting a SIM only plan instead. SIM only plans work just like your traditional phone contracts but without the handset offer. You need to bring your own but you get to enjoy the same affordable rates on your call, text and data services. Most SIM only deals have 12-month terms but there are now one-month deals for people with bad credit.

Check out guaranteed phone contracts

Last but not the least, you can always check out guaranteed phone contract deals. These deals are specially offered for customers with bad credit issues. There are no credit checks required hence approval is almost always guaranteed. It also works just like regular phone contracts. You can choose your handset as well as your phone bundle. But this time, the handset selection is limited to cheaper and older models. The cost may also be different than usual. Because you have bad credit, expect the associated charges to your phone contract to be higher.

Which is Better? Phone Contracts vs. Pay As You Go
Which is Better? Phone Contracts vs. Pay As You Go

Just like the next person, you probably can’t live a day without your mobile phone. Gone are the days when mobile phones used to be luxuries. Today, it’s rare to see someone without a phone. Not only are phones handy for everyday communication but it’s also used for checking emails, website browsing, music streaming, playing online games and even shopping online.

With mobile phones now a necessity for the digital lifestyle, phone offers abound in the market. If you’re in the market for a new phone, choosing between a Pay As You Go deal versus a pay monthly contract can be quite confusing. To help you choose wisely, here’s a comparison of the two types of phone deals.

Pay Monthly Contracts

Between pay monthly and pay as you go, the former is largely preferred by majority of subscribers in the UK and for good reasons. With pay monthly contracts, you will essentially get a free handset because its cost is spread over the duration of the contract’s term. Typically, the term is 24 months wherein you are required to pay a fixed monthly fee. Other than the handset, you also get to avail a phone bundle that includes allowances for your call, text and data services.

One of the main reasons why subscribers are attracted to pay monthly contracts is obviously because of the free handset. There are also regular promotions offered only for people who are tied up to a contract. But there’s also a downside to think about. Phone contracts can be quite expensive due to hidden charges and other fees. If you failed to pick the right plan then you’ll likely end up paying more than what you’re actually using or need.

Pay As You Go

Pay As You Go deals, on one hand, may not be as popular as pay monthly contracts but it’s actually often recommended if you want to save more money on your phone bill. With Pay As You Go, you don’t get any free handset. This means you’ll have to buy the phone and the SIM card upfront. If you have cash, this is a smarter option since you won’t need to worry about any lengthy contracts and monthly phone bills.

Unlike pay monthly contracts, however, Pay As You Go will need you to top-up your phone with credit before you can call, text and use data on your mobile. You’ll have more control on your bill because you only top-up when needed. You don’t have to worry about going beyond your bundle’s set allowances either. But there’s just one problem. While cheaper in most cases, it’s not always convenient especially during emergencies. Rates for calls, texts and data usage are also relatively more expensive than if you have a phone contract.

Which is Better?

Most experts will tell you to opt for a Pay As You Go deal if you want to save money in the long run. Not only will you have more control of your phone bill but you won’t have to be tied up to a lengthy contract with hidden fees and other hefty charges.

PAYG deals, however, are not for everyone. When you’re a heavy mobile user and you want cheaper rates on your phone services, getting a phone contract is worth considering. If you also want the latest handset but can’t pay for it upfront, a phone contract will let you spread the cost of said phone over 24 months. Bottom line, there’s no one better option for everyone. It will depend on what you need and what you can afford.