Are you stuck trying to find a mobile phone provider that will grant you a pay monthly contract with your bad credit history? Have you tried everything from choosing the cheapest handset to the lowest monthly tariff, offering a deposit and even trying some of your friends and relatives to be your guarantor? If none of this worked for you and you tried with both retailers and networks, you should start looking at some alternatives to bad credit mobile phone contacts.
Here, we will explain the three you can use. These are:
- No credit check pay monthly contracts
- Pay-as-you-go plans
- SIM-only deals
Like the name suggest, a no credit check pay monthly contract frees you from the dreaded credit history check. As a result, these contracts are much easier to obtain than a regular or even a bad credit pay monthly contract. Caveat emptor: these contracts are not as good as they sound. First of all, they usually end up to be much more expensive than standard and bad credit pay monthly contracts. Also, the seller that offers you one of these will probably be unwilling to offer you anything more than the lowest monthly tariff and the cheapest handsets he has. This alternative should only be used as a last resort.
The other two are much better.
SIM-only deals are very similar to bad credit pay monthly contracts, but they do differ in a couple of things. First, they are much easier to get as the credit checks are not as strict. Next, SIM-only deals are also more forgiving on your wallet as you don't have to pay for the handset. It isn't included with the deal. Finally, SIM-only deals last much shorter than a pay monthly contract, only a month to three months. This is called a “rolling contract” and gives you more flexibility when dealing with the provider.
PAYG is likely the alternative to monthly contracts that you will hear most often when you are trying to get a mobile phone. There is a lot of debate among mobile phone consumers about which one is better. But that's for some other time. For now, let's focus on the benefits that PAYG plans offer if you are looking for a mobile phone and have bad credit. There are a couple, but the most important one is that with PAYG, you don't have to worry about paying a monthly phone bill. You will have a limited amount of credit that you can use for mobile phone services (calling and texting) and once you reach 0, you are no longer able to use your phone. Until you buy some more credit points, that is. For someone who wants to have full control over his or her mobile phone bill, this is a very good choice.