As a consumer, you have a credit score that is based on your past credit behaviour. This score ranges from 300 to 850. When you apply for something like a mobile phone contract, your credit score determines how much you can borrow, the rate you can borrow at and, most importantly, if you can borrow at all.
When it comes to applying for a pay monthly mobile phone contract, you are essentially borrowing a new handset on credit. As such, you have to sign a contract in which you agree to pay back the cost over the next 12, 18 or 24 months. In case you have bad credit (for example, lower than 400), the provider will reject your application for fear that you might default on your payments.
Checking your credit record is an important step you need to make before you apply for a mobile phone contract. You need to make sure that it is up to date. You can do this with any of the three UK credit agencies: Experian, Callcredit or Equifax, for a small fee.
Here, you can see your credit score, details of your past credit agreements and any credit applications in the past 6 years.