Contract Phones for Bad Credit - Complete Guide

Looking to buy a contract phone but your bad credit score is standing in the way?

Maybe you’ve contacted a UK network provider but they’ve refused to offer you a contract because your financial background makes them nervous. Perhaps they demanded a large deposit on a cutting-edge smartphone that you simply can’t afford to pay.

Sadly, it’s not always easy to get your hands on the latest contract phones with bad credit. But at Mega Mobile Deals, we’re committed to changing all that.

We’re here to bring people with poor credit, and working to a tight budget, the best range of bad credit contract mobile phones available right now. And to help you get started, our experts have created this complete guide to getting a contract phone with a low credit score.

What does a contract phone mean?

When you choose a contract phone, you enter into an agreement with the service provider topay for your designated minutes, text messages, and data on a monthly basis. This is a binding document that commits you to keeping up with your payments for the duration of the contract’s term.

f you’re only ever purchased pay as you go phones, switching to a contract phone is a majorshift. But the positives outweigh the negatives significantly.

For example, you may find managing your mobile expense easier with a contract phone. Payas you go phone deals require you to keep topping your balance up to make calls, send texts, etc. That means you may pay a lot more to actually use your phone’s core functions during a busy month than others.

Also, you could find yourself cut off from communicating with others via calls and texts if you can’t afford to top your balance up.

But with contract phones, you know you’ll always be able to interact with the people in your life as and when needed — provided you stay within the limitations of your specific deal. Exceeding these will lead to an extra charge, but it’s unlikely this will happen if you choose the right package for your lifestyle.

SIM-only contract deals are available, too. These are fantastic if you want to keep your current mobile but need a fresh payment plan.

How does bad credit affect your ability to buy a contract phone?

Checking your credit score is a quick and easy way for UK lenders to determine what sort of customer you’re likely to be. A good credit score is usually between 881 and 960, while 961 to 999 is considered to be excellent. Anything from 721 to 880 is classed as fair.

The better your score, the more likely lenders are to offer you the deal you’re looking for. Mobile service providers will see you as a low-risk customer and trust that you’ll make your payments every month for the duration of your phone contract.

But a low credit score presents you as a higher risk. If you have a history of being unable to make payments on time, companies and lenders may assume you struggle to manage money efficiently. And they’ll worry about losing money on you down the line.

Many factors can contribute to a bad credit rating, including:

  • Missed or late payments
  • Exceeding your credit limit (possibly through irresponsible spending)
  • Submitting too many credit applications within a short period
  • Moving from one property to another frequently
  • Being declared bankrupt

It’s crucial that you keep this in mind when looking for a new contract phone. You may have your eye on the latest model from a major manufacturer such as Samsung or Apple, but if you have a bad credit score, you might be denied the chance to buy it from most service providers.

Fortunately, you can improve your credit rating over time by being punctual with payments, using your credit card(s) sparingly but regularly, fixing any mistakes on your credit report, and making sure you’re registered on the electoral roll.

Another potential credit-related issue that could affect your freedom to buy any contract phone you want to is a total lack of credit history.

If this is your first phone contract and you’ve never had credit cards, bill payments, etc., service providers will be unable to determine if you’re a risk or not. Signing up for a credit card and using it little but often can demonstrate that you’re a responsible customer.

Should you check your credit score before looking for contract phones?

It’s always a good idea to check your credit score before you apply for any form of financial deal, whether that’s a mortgage, a car loan, or a phone contract.

You need to know what to expect, and how phone service providers will view you during the application stage. This helps you mitigate any potential disappointment you may feel if you’returned down.

Checking your credit score helps you understand why you’ve earned such a low rating and what you can do to put it right. Another reason to check your credit score before shopping forcontract phones is to look for potential mistakes. For example, certain incorrect details could make you out to be a higher risk than you are.

That means you could be missing out for no good reason without even realising it.

Fortunately, checking your credit score is fast and simple. You can use one of the three major credit agencies for UK consumers: Experian, TransUnion, and Equifax. Each of these uses scales which are slightly different to one another for determining your score.

As a result, a provider using Experian to check your credit score may find it’s “fair” while one using TransUnion or Equifax could see that you’re actually “good”.

There’s nothing you can do about this, sadly. But each network has its own internal criteria for deciding how to proceed after checking your score. Just because one provider turns you down doesn’t mean they all will.

So, embrace an optimistic mindset when looking for a bad credit contract phone. You could still walk away with one of your favourite models at a great price you can afford.

How you can get a contract phone

You can get your hands on a sleek new contract phone in various ways. The traditional option is to visit a high-street network store (e.g. EE, O2) and browse their deals.

This gives you an opportunity to speak to an advisor face to face, drawing on their expertise and their personalised recommendations. You can tell them about your phone needs, goals, and expectations to ensure you receive a deal suited to your general usage.

However, actually visiting a shop isn’t ideal for everyone. For example, customers with mobility or social issues may struggle. That’s where online retail comes in.

You can browse different contract phones at countless websites, with plenty of low-cost deals available. With so many sites competing with each other for customers’ money, networks have ample motivation to make their contracts as affordable as they can.

That’s why taking the time to check online options instead of visiting a local store has become so common amongst UK shoppers. Especially those looking for mobile phones on contract bad credit deals.

You will still be subject to a credit check at most sites, though. If you pass, your order is typically processed immediately and the provider will send the phone to you as soon as possible. If you have a good credit score, this is a fast, easy, convenient way to buy a new phone.

But if you have bad credit, so many retailers are likely to turn you down. However, you can find contract phones for bad credit easily at Mega Mobile Deals.

How? We’ll come back to this below.

Check the network coverage

Another key step when shopping for a contract phone is the level of network coverage in your area. You don’t want to invest in a mobile each month for the next two or three years only to find you can’t actually make calls or receive texts to the standard you expect.

Poor reception can leave you struggling to hear people during conversations, and text messages may be delayed or fail to arrive altogether. This requires a little bit of research before you make your choice, so don’t be afraid to reach out to any of the networks you’re considering applying to find out more.

Also, on the topic of network selection, try to speak to other people living with bad credit about their phones. Do they have a contract with a major network? What handset do they own and how much does it cost per month? How much data do they get?

This can help you make a well-informed decision and find the perfect deal. You may have friends, relatives, or colleagues in a similar position, or you could interact with others on social media and online forums. A little bit of research can go a long way.

Do phone deals include insurance?

Generally, phone deals do not include insurance. But when you sign a contract, the provider will usually offer you an opportunity to purchase insurance for an additional fee.

This isn’t mandatory: you can either choose to find your own insurance deal or simply ignore it. After all, you don’t have to insure your phone — but if you don’t, you could lose money in the long run.

How? Imagine if you leave your phone on a table in a bar, turn away, and find it’s gone missing. Imagine if you drop your phone as you’re walking along a pavement and it refuses to switch on. Imagine any number of other scenarios in which you could break or lose your phone.

Without insurance, you would be forced to pay for a new phone. And that might be out of thequestion.

However, if you do choose insurance, that’s an additional monthly cost you may struggle to afford. Be sure to check the small print, too, to ensure you understand what the policy covers.

Can I get the latest smartphone with a bad credit score?

Bad credit can make many aspects of life difficult. Securing a loan for a new car you need sobadly. Getting a mortgage on your dream home. Signing up for another credit card in the runup to Christmas when you have gifts to buy and no money to cover them.

And, of course, bad credit can prevent you signing up for a contract phone with some of the top networks and brands. Particularly if you’re looking at the most cutting-edge models on the market.

Generally, UK shoppers with bad credit find getting low-cost phone deals for models released several years earlier easier. Providers may not run credit checks when there’s less financial risk involved. No credit check mobile phones are obviously an attractive option, but you may not have access to the features, functions, and apps you depend on every day.

For example, you may be a photographer who needs a high-quality camera on your phone to capture images worthy of an exhibition or online portfolio.

Fortunately, you can find the latest smartphones for customers with bad credit ratings. It’s allabout finding the right place to buy them.

How Mega Mobile Deals helps you with bad credit contract mobile phones

Mega Mobile Deals is dedicated to helping you find the mobile contract deals for bad credit you need. We request no upfront payments or deposits. We don’t perform a credit check.

You can apply for amazing mobile phones on finance with bad credit from leading brands, such as the Samsung Galaxy S10, the iPhone 11 Pro Max, Samsung A10, Huawei P30, andmore. We even offer SIM-only deals.

Our application process is fast and simple, so you can be on your way to ordering a gorgeous new phone in no time. Mega Mobile Deals brings you packages including unlimiteddata, unlimited calls, and unlimited texts, with some ready for 5G.

Browse our portfolio of contract mobile phones for bad credit and find the perfect deal today!