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.