Long gone are the days when having bad credit meant that you could kiss getting approved for a loan or a mobile phone contract goodbye. The mobile phone contracting industry has undergone a metamorphosis in the past few years and individuals with bad credit can also get approved for a mobile phone contract without having to go through a lot of trouble. The global credit crunch was a wakeup call to lenders and mobile phone providers alike that having a poor credit rating is not always a function of financial irresponsibility. Due to the financial crisis, great companies were brought to their knees and individuals found themselves deeper into debt.
The hard line stance held by lenders and mobile phone providers proved to be an expensive gimmick to hold onto. Providers started to find ways in which they could bring on board people with a low credit rating by coming up with a compromise of sorts. The earlier stance or policy of “poor credit rating no approval” was swiftly swept under the carpet and in its stead bad credit phones and guaranteed mobile phone contracts were born. From then on, the mobile phone contracting landscape has wondrously changed and now we can proudly get approved for a mobile phone contract even if our credit score is nothing to write home about.
The launch of guaranteed mobile phone contracts was received positively by all and sundry who had for years struggled with getting approved for a mobile phone contract. However, this great development came at a price. While credit checks were no longer the modus operandi when it came to approval of guaranteed mobile phone contracts, applicants with bad credit had to contend with a number of things. For starters, they had to deal with the idea of enjoying fewer benefits as compared to the perks enjoyed by people with a perfect credit history. What this meant is that the number of minutes, texts and data bundles provided in guaranteed mobile phone contracts pales in comparison to those offered to people with a good credit rating.
Secondly, approval for these kinds of contracts was also pegged on the ability of a person to effectively pay an upfront deposit. In as much as approval for a mobile phone contract was within reach even if you had bad credit, there was still some level of suspicion that providers had when dealing with people that had a poor credit rating. To mitigate risks on their side, a number of providers require that one pays an upfront payment before they can be approved.
The interest rates charged on these kinds of contracts were also relatively higher as compared to standard contracts because providers viewed the applicants as high risks. As if that is not enough, one has to be committed to a contract for at least 18 months. While it gave relief to those with a low credit rating, guaranteed mobile phone contracts have also been a pain in the neck if what we have just mentioned above is anything to go by. However, we cannot also be oblivious to the fact that they have been instrumental in helping those with a less than average credit score enjoy mobile phone plans, improve their credit rating provided they don’t miss on payments and be on equal footing with those with a healthy credit history in so as mobile phone contracts are concerned.
Are your contracts solely for brand new phones?
No. we offer contracts for both refurbished phones as well as brand new handsets. Contracts for refurbished phones are relatively cheaper than those for brand new phones. As such, if you feel as if you have a constrained budget, you can always apply for a refurbished mobile phone contract.
What are my options if my application is rejected?
Ordinarily, we do not decline applications for guaranteed mobile phone contracts on the basis of a person’s credit score. The only time we can decline your application is if there are errors with your application or if you willfully furnish us with inaccurate information. Under these circumstances, we can only allow you to fix errors if they were made unintentionally and approve you or bar you if you willfully provide inaccurate information.
What are the types of handsets on offer?
We endeavor to provide our customers with as many handsets as possible. It doesn’t matter what your preference is as you can choose from older versions of iPhone, Samsung galaxy as well as brand new phones such as HTC, Huawei, Motorola handsets, Microsoft/Nokia, among others.
Is it compulsory to pay an upfront deposit?
Yes. Considering that we do not carry out credit checks or use it as a basis to determine who is approved or not, we require that you make a small upfront payment to help as mitigate the risks on our side.
What is the standard commitment period?
For guaranteed mobile phone contracts, we require that you be committed or locked in our contract for 18 months in the least. You have a free hand to determine how long beyond that you can be committed to the contract.