Guaranteed Mobile Phone Contracts: The Pros and Cons

In the grandest scheme of things, having bad credit is deemed by lenders and mobile phone providers alike as a misdemeanor. In fact, people with a poor credit rating are given a different kind of treatment as compared to those with a healthy history whenever they seek to be approved for a mobile phone contract. They are viewed with suspicions and more often than not, providers rarely glance at their applications twice provided that they are in the red line as regards credit rating. While this was largely acceptable as the norm a few years back, the landscape has undergone immense change in recent years. There has been a paradigm shift and providers across the UK are now forgiving and keen on bringing individuals whose credit rating is low on board.

This change of attitude perhaps explains the mushrooming and subsequent popularity of guaranteed mobile phone contracts as well as bad credit mobile phones across the UK. The allure of no credit checks coupled with high acceptance and approval rates informs the renewed optimism among individuals that initially were held in high contempt because of their credit status. As we speak, getting approved for a mobile phone plan is no longer a harrowing experience as it were a few years back. The number of providers offering guaranteed mobile phone contracts in the United Kingdom continues to increase every single day.

In this regard, the fear that characterized application of mobile phone contracts by people with a poor credit rating has slowly been replaced with that of optimism and confidence. But what are the advantages or benefits of applying for a guaranteed mobile phone contract?

A) Guarantee

Unlike other kinds of mobile phone contracts, you are almost assured of an approval irrespective of whether you have an average or poor credit rating. You simply need to choose your provider carefully to take advantage of better perks or benefits.

B) No credit checks

The term “no credit checks” is sweet music to the ears of people grappling with bad credit. It lights them up and gives them an assurance that they won’t have to deal with another rejection based on their credit status. This is perhaps one of the major reasons why guaranteed mobile phone contracts are very popular across the UK.

C) Contacts

The fear that many people have when it comes to applying for mobile phone contracts is the discomfort of having to change their numbers and inconveniencing friends and family. Luckily, most providers have now collaborated with major networks across the UK which means a person can get approved for a contract in their network of choice.


In as much as guaranteed mobile phone contracts are very popular, there are also a couple of demerits/disadvantages associated with applying for this kind of contract. These are:

High interest rates

Generally, providers look at individuals with a poor credit as high risks and therefore charge high interest rates. This makes guaranteed mobile phone contracts more expensive than standard mobile phone contracts.

Upfront fee

Most providers insist that applicants should pay an upfront deposit which more often than not is a hindrance especially if someone is struggling financially. The upfront fee is usually a way of providers mitigating risks.

Contract commitment

While standard contracts require that a person be committed anywhere from 6 months, people applying for guaranteed contracts do not enjoy the same luxury. They have to be locked into the contract for at least 18 months.