Why You Shouldn’t Rely on No Credit Check Mobile Phones

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Like most services, getting approved for a mobile phone contract is difficult without good credit to back you up. If you are one of the people who failed the credit checks performed by mobile carriers, chances are you’ve probably heard of no credit check mobile contracts, which claim to guarantee anyone a mobile contract, no matter what that individual’s credit score is.

The idea of being able to get a new phone without cash and without having to pass credit checks is indeed very enticing. This could save you from all the stress and trouble of application, except that it is not real.

In the UK, there are some networks which offer these “no credit checks” or “guaranteed” mobile phone contracts which promise to approve anyone a phone contract regardless of one’s credit. Unfortunately, these deals are just hard to believe, and you’ll see why.

Just like other service providers, mobile carriers are businesses, and they mean to make money. They are able to provide phones for free or at a subsidized price because they intend to recover the cost of the phone from the subscriber’s monthly repayments. This means that to get their money back, they need to ensure payments, and no sane provider will approve anyone a mobile contract without knowing if that person has the ability to repay or not.

Providers determine one’s ability to make payments based on past financial performances, which is reflected on your credit report. It is simple really. If your credit score says positive things about you, like regular, on-time payments, and your credit score is good, you are likely to get approved. On the other hand, if your credit is damaged, like constantly missing payments or having accounts sent to collections, you will be seen as a risky customer and the provider will be unwilling to sign you up with their services.

So why can these so-called no credit check networks accept any type of customer? Simple, because they want to take advantage and make more money out of bad credit customers, who don’t really have much of an option and are not in the position to shop around for phone deals. The next question then is do they approve “any” type of application? Definitely not!

You see, they promise to not let anyone away empty-handed, but it doesn’t necessarily mean that the deal they provided is reasonable. If anyone managed to approve for a contract, it’s probably for a phone that is much less expensive than what they wanted in the first place. Sometimes, it could also be a sim only contract, which anyone, even a bad credit customer, can qualify for in the major networks. Sim only deals are less risky because there’s no handset involved, so any provider would be happy to grant you the deal without the outrageous pricing charged by a no credit check network.

So the next time you hear about these no credit check phone contracts, don’t get your hopes up. Chances are you’re better off buying the handset you want in cash or apply for an affordable sim only contract from a reputable company.

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