Get Approved for a Phone Contract Even with Bad Credit

Having bad credit has consequences that can affect not only your personal loan applications but also your phone contract options. If you apply for a phone contract and your provider runs a credit check and discovers your history of default or even CCJ, you shouldn’t get your hopes high. Providers will likely reject your application because you are a high-risk customer. But that doesn’t mean you can’t get around the problem. If you really want a phone contract deal, you can lower the risks you pose by trying the following tips and tricks:

Pick a cheap handset

One way to convince your provider that you’re a worthy customer to do business with is by picking a cheaper handset than what you initially had in mind. When you pick a cheap handset, you’ll lower your monthly fee, essentially lowering the risks your pose. For additional help on how to pick the right handset, Digital Trends has a comprehensive guide for you.

Bring in a guarantor

Another way to lower the risks for your provider is to bring a guarantor into the picture. You may have bad credit but if you have a guarantor with good credit who is willing to co-sign the contract with you then your provider might just approve your application. With a guarantor, your provider has another person to run after in case you missed payments.

Offer to pay a higher upfront fee

If you have bad credit but you want to own the latest handset, there’s one trick you can try when applying for a phone contract. Most deals that offer high-end handsets require upfront fees. What you can do is offer to pay a higher upfront fee than what is required. This way, you’ll be paying off a large part of the phone’s cost lowering your monthly fee in the process.

Apply for a guaranteed phone contract

If the aforementioned tricks won’t work, there is one alternative you can resort to. Rather than give up your phone contract application completely, you can apply for a guaranteed phone deal instead. This type of deal guarantees approval even if you have bad credit under your belt. In exchange, you may be charged a higher monthly fee not to mention that your handset options may be limited to budget and mid-range phones.