Mobile phones have become part of our lives. We use them as cameras, alarms, televisions, computers, and much more. Nonetheless, it can be difficult to get one if you have bad credit.
When you are applying for a mobile phone arrangement, there are three possible results. Get an approval with no inquest, since you passed the credit check. Be asked to pay a deposit for the phone you want, which will be refunded after a specified period of time. And lastly, get declined because of bad credit history.
Every phone network keeps its own credit score procedure which, if you do not meet, you get declined. This is because accepting you puts them at risk of losing money. If your mobile phone contract has ever been declined because of bad credit, you still have options.
- Look at sim only plans.
The thought of purchasing a cheap phone for the short term or keeping your old phones is unpalatable. However, using a cheap or older phone for 3 months helps you rebuild your credit score, and convince network providers that you are able to make steady monthly payments. This provides you with a strong future platform that will give you the ability to own the best and latest smartphones as soon as they are available in the market. This is the best option if you have been rejected and do not want any more rejections in future.
If you want to completely avoid credit checks, you can go for no credit check sim only options or a pre-paid phone plan. The firms that offer this service do not execute any credit checks because you pay for the service in advance. The deals in these firms work on a monthly basis and you have the advantage of revoking at any time without extra costs. They are cheaper than traditional plans.
You can also go for pay-as-you-go plans which let you add more talk time or data when you need them.
The disadvantage of this plan is that; you cannot purchase a phone and pay for it in instalments like you would do with a regular plan as there is no commitment.
- Family plan
Most network providers give family cell phone options. Some networks allow as much as 10 sim cards on a single plan. However, in order to authorise service under this plan, only the holder of the main account must pass a credit check. The same account holder is the one responsible for paying the monthly bill. If you do not pay your own bill, he has to pay it, so do not you’re your payments.
The advantage of joining a family plan is that it allows you to get around credit checks and save money.
- A co- signer
If you have a co-signer with good credit, you can get a mobile phone plan with bad credit. Nonetheless, the account would be under the cosigner’s name. This acts as security for the service provider so that just in case you default in your bill payment, your co-signer will have to pay it.
The co-signer can, in the future, change the account name to yours. Many service providers will run your credit score if you do change the name, but you will not have to pay a deposit since the account is already opened. Remember that service providers are different, each one could have a contrasting way of executing this.
- Security deposit.
You can still get a cell phone plan with bad credit if you pay a security deposit. Most service providers will repay your deposit after a given period of time if your bill is paid on time. The amount of deposit you pay depends on your credit score. The deposits are mostly per sim card. You will pay multiple deposits if you have more than one phone under the same account.
If you have bad credit, the best mobile phone option would be a sim only plan. In a case where the upfront payment is too high, join a family plan and work to build your credit score as you share costs in the family plan. In time, you will be able to get your own plan.
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