Get The Facts About No Credit Check Mobile Phones
Is it a good idea to apply for one of those no credit check mobile phone contracts? The idea certainly sounds appealing to many of you reading this article, as you no doubt have credit problems of your own. However, these are some dangerous waters you will have to traverse. May this article serve as your map and compass in them.
As a bad credit customer in search of mobile phone contract, you will be happy to hear that more and more companies in the United Kingdom are offering no credit check contracts. However, you should use this option only when all else fails.
Credit rating checks are done to ensure that you will have sufficient funds to pay for the entire contract. This way, the provider protects himself from losing money on you. Simply put, if you have poor credit, you are seen as a high-risk customer and the company will do everything they can to make sure they get their money back, even through court.
If there is no credit check, there is no way for the company to know if you are a risk or not. So how do they secure themselves? By offering you more expensive contracts then normally. Think of no credit check mobile phone plans as payday loans. Almost everyone in UK with bad credit has either used or pondered using payday loans at some point. They are certainly easy and fast to get, so what's the problem? Well, the problem is that, because of high interest rates on them, you end up paying much, much more than you loaned. No credit check mobile phones are very similar to this.
If you really need a mobile phone, don't get one via no credit check. In fact, you can still apply for a monthly phone contract with bad credit. You just have to know a few tricks that will make your application successful:
- Get a cheaper handset
- Pay an upfront deposit
- Apply with the network
If this fails, you can also try some of these:
- Apply for a SIM-only plan
- Apply for a Pay as You Go (PAYG) plan
- Find a guarantor
Remember, no credit check mobile phones may sound like a good deal, but they are not. You will be doing your budget a great favour by avoiding them and instead opting for one of its alternatives.