When applying for a mobile phone contract
When applying for a mobile phone contract, network operators will require that you pass a credit check to make sure you can make repayments on time - but what if you are experiencing trouble with bad credit history?
Phone contracts
There are not many UK companies which offer pay monthly contracts specifically to people with bad credit, but that doesnt say you cant get a mobile with the main mobile networks.
Follow the tips below and increase your chances of being approved for a mobile phone contract if you have bad credit history.
Tip #1 - Apply Directly Online With 3 Mobile or Vodafone
Not many consumers are aware, that each mobile network operator has a different credit checking crieria and some networks are easier to be accepted for than others.
While you may get declined at one company, you can easily get accepted by another.
Out of the 6 UK networks, it has been said that 3 Mobile and Vodafone have the easiest credit checking criteria.
You can vastly increase your chances of being approved by applying with a low-end handset and cheaper line rental tariff.
Applying directly with the mobile network operators rather than via third party retailers such as Phones4U and Carphone Warehouse is also beneficial. When applying directly at the networks website, they will often contact you to offer alternative packages should you fail their initial credit checks.
Tip #2 - Avoid Applying For Expensive Handsets And High Monthly Tariffs
Not many people are aware that when you apply for a pay monthly contract, the credit checking criteria is based upon the value of the specific phone and monthly tariff plan you choose.
The more expensive the handset and the higher the monthly line rental cost, the tougher the credit check. Pay monthly contracts work exactly like any other type of loan - the more more you borrow, the harder it is to be approved.
Applying for a low-end free handset on a cheaper tariff will greatly improve your chances of getting accepted for a pay monthly contract.
Until you improve your credit rating, the chances of you getting an expensive handset like the Apple iPhone with a contract of £45 a month is virtually impossible. So steer clear from these expensive combinations and other packages which include free gifts when making your choice.
Tip #3 - Consider SIM Card Only Contracts
Easier Credit Checks & Approval
SIM only contracts have a much easier credit scoring criteria since a handset is not supplied with the contract.
SIM only contracts offer more minutes and texts than standard contracts and operate on short 30 day rolling contract.
If having applied for a cheap handset and tariff with Vodafone and 3 Mobile you are still declined, it is recommended you try again but with a SIM only contract.
After making regular repayments of your monthly bill, you will establish trust with the networks who will often allow you to upgrade to a free handset after a regular payment history is seen.
If you already have a handset you like, then SIM only contracts are worth considering.
- More minutes and texts than normal contracts
- 30 day rolling contract
- Keep your current phone number
- Use existing handset
Which Company Should I Apply With?
Each time you apply for a form of credit, the application will leave a 'footprint' of your on your credit report. It is said that the more applications you make and the more footprints you leave in a short space of time, the worse your credit rating will be.
Despite this, I would not worry about trying 3 Mobile and Vodafone before considering the SIM only option. In my opinion, if your credit rating is already quite poor, and you are struggling to get credit for a variety of items, then a few more footprints will not affect you too much in the grand scheme of things.
When you manage to get accepted at either of the networks, it may be wise to make sure you keep up with regular bill repayments to rebuild your credit rating.
Can You Get An iPhone With Bad Credit?
The iPhone is arguably the most coveted item in the mobile phone industry. With great features and a lot of free and awesome applications, this smart phone is one of the top choices for must-have accessories.
But for individuals with bad credit ratings, it is not easy to be approved for an iPhone. It is in the best interests of people with bad credit ratings to choose a mid-range model for a mobile phone when you are applying for a mobile phone contract.
A great solution for bad mobile phone credit ratings is to apply for a sim-only phone contract. Once you are approved for the mobile phone plan, it gets easier to upgrade plans.
At the end of the contract, you can freely choose whichever mobile phone model that best suits your style and your needs.
For the initial approval after having poor credit ratings, the best bet is for you to set your sights on mobile phone models that have been in the market for a while.
Realistically, applying for the latest mobile phone models does not give you a high probability of being approved for a mobile phone contract.
Need A Credit Card For Your Application?
Prepaid Credit Cards With 100% Guaranteed Acceptance
Many people with a bad credit rating tend to have basic bank accounts that come with cash cards such as Electron. When applying or a mobile phone contract, companies will rarely accept these types of cards, and a debit or credit card is usually required. A good option is to apply for a prepaid credit card such as Splash Plastic card.
Prepaid cards work exactly like a normal credit card, except that you preload the card with your own funds instead. Just like Pay As You Go phones, you can top up the card and never worry about spending more than you can afford.
You can spend without fear of debt or fraud at millions of retailers online or on the high street, you can even use it to withdraw cash from ATM's.
Since you are not actually borrowing any credit, prepaid credit cards have a guaranteed acceptance no matter what your credit rating is like. Prepaid credit cards are an ideal way to get your hands on a recognised card but without the need to pass any checks.
* No credit check or bank account required
* Use at over 25 million retail outlets and over 1 million ATMs worldwide, wherever you see the MasterCard acceptance mark
* Shop securely online, by phone or in store
* Top-up for FREE at 14,500 locations, including any UK Post Office® branch
Click to view Splash Plastic credit card the UK's first Maestro prepaid credit card.
Credit Check Tips
Understanding Your Credit Score
If you've ever been declined for such things like a mobile phone, loan or overdraft, you will know how frustrating it can be. This is especially true when all the lender will tell you, is that you have been declined and cannot tell you exactly why you were turned down.
Although each lender has their own particular particular criteria, there are a number of common factors which can affect your score. These factors can result in your application ether being accepted or declined.
Being aware of these factors can help you improve the chance of getting the finance you require.
Get a free copy of your credit report
1. Previous Bad Credit History
Previous history counts towards around 30% of your score. Things like County Court Judgements (CCJ's), defaults or missed/late payments will have a negative effect on your application.
These factors will remain on your file for 6 years, but things like defaults/late payments will diminish over time. If you have been making regular payments in the last year, then this will great help increase your credi t scoring.
2. Not Being Registered On The Electoral Roll
If you have not applied to be on the electoral roll at your current address, then there is a high chance you will be turned down for your application. The thinking behind this, is that you are not thinking of becoming a long term resident at the address and lenders are very wary of this.
3. At Current Address For Less Than 3 Years
Lenders prefer giving finance to people with continuity and if you have been at your address for 3 years or more, then your score will be considerably higher than if you recently moved to your current address.
Having a number of different addresses in the last 3 years will have a negative impact, and this is especially true if you are a tenant rather than a homeowner.
4. New Job
Having a stable and long term job is as important as living at your address for a number of years. Lenders obviously prefer people who have a steady employment record as they believe this will reduce the likeliness of you not being able to keep up with payments. If you have been at your job for a number of years, this will give a great boost to your score.
However, having two employers in the past 3 years is not all bad news. If you have changed jobs recently and have a higher salary than your previous employment, then this will not affect the check.
Lenders may require copies of your previous pay slips depending on the item you are applying for. If you need replacements, the following companies can help:
5. Not Having A Bank Account
If you have been with your bank for a number of years, then your credit score will receive a massive boost. Unfortunately, if you have recently opened a new account, or even worse, if you have no bank account, then this will have a negative impact.
Claim Your Free Credit Report
Knowing what is on your credit report can be very useful whether you have bad credit history or not.
The contents of your personal report can have a massive impact on whether or not you are given credit. Your credit rating may also affect the interest rate you are offered by lenders, which could lead to more costly borrowing.
You have the right to view the information contained in your credit report to make sure it is accurate. If errors are found, you are entitled to apply to have them corrected.
Get a FREE copy of your credit report
with CreditExpert. You will need to register with CreditExpert for a 30 days free access to your files. allows you get a 30 day free access to your credit files.
You should check your credit report if:
-You are about to make a major credit application, such as for a loan, mortgage or car.
- You have denied for a credit card, loan, or other credit-based service.
- You want to check and guard against identity fraud.
- You are planning on getting out of credit and want to make the first steps to clearing your credit history and debts.
Third of Brits Risk Refusal Because Of Missed Mobile Phone Payments
It has been said that more than 1 in 3 people in the UK will face refusal for finance because of their mobile phone. This is according to research by the agency Checkmyfile.
Checkmyfile reported that after looking at 1000 consumer credit files, they found that 36.6% of consumers had mobile phone accounts with missed payments.
Barry Stamp of Checkmyfile.com, said he was shocked at just how many people had left themselves exposed to credit refusal in this way.
"Missed payments on mobile phone accounts are much more serious than most people realise..."
Nokia N82 Released Early On PAYG Because Of Bad Credit History
Pay as you go mobile phone networks are regarded as the most cost effective way of running a mobile phone because there is no contract and no line
rental charges although this is starting to change.
While it is unusual to see high specification handsets available on a pay as you go basis this has not prevented the new Nokia N82 from being released off contract in the UK.
The Nokia N82 is the latest addition to Nokia's premium N-Series of mobile phones and is available on O2 as well as pay as you go. It is expected that the N82 will also be released on other networks in the immediate future as new stock arrives in the UK and retailers are able to secure large numbers for connection to other operators. It is anticipated that this will give consumers plenty of options for owning this latest model high end mobile phone.
The criteria for credit used by UK mobile phone networks has left an increasing number of people unable to own a mobile phone on contract. This means that the only option they have is pay as you go or a Sim free phone. Phones without a Sim card are not connected to a particular network and this freedom means that you pay more for the handset.
You could be forgiven for believing that retailers are cashing in on these problems by making high end phones like the Nokia N82 available on pay as you go much earlier than has been the case. However, this could be a good thing for consumers with a poor credit rating as it increases their chances of owning a high end phone without the drawbacks attached to contract agreements.
Phone contracts
Phone contracts
There are not many UK companies which offer pay monthly contracts specifically to people with bad credit, but that doesnt say you cant get a mobile with the main mobile networks.
Follow the tips below and increase your chances of being approved for a mobile phone contract if you have bad credit history.
Tip #1 - Apply Directly Online With 3 Mobile or Vodafone
Not many consumers are aware, that each mobile network operator has a different credit checking crieria and some networks are easier to be accepted for than others.
While you may get declined at one company, you can easily get accepted by another.
Out of the 6 UK networks, it has been said that 3 Mobile and Vodafone have the easiest credit checking criteria.
You can vastly increase your chances of being approved by applying with a low-end handset and cheaper line rental tariff.
Applying directly with the mobile network operators rather than via third party retailers such as Phones4U and Carphone Warehouse is also beneficial. When applying directly at the networks website, they will often contact you to offer alternative packages should you fail their initial credit checks.
Tip #2 - Avoid Applying For Expensive Handsets And High Monthly Tariffs
Not many people are aware that when you apply for a pay monthly contract, the credit checking criteria is based upon the value of the specific phone and monthly tariff plan you choose.
The more expensive the handset and the higher the monthly line rental cost, the tougher the credit check. Pay monthly contracts work exactly like any other type of loan - the more more you borrow, the harder it is to be approved.
Applying for a low-end free handset on a cheaper tariff will greatly improve your chances of getting accepted for a pay monthly contract.
Until you improve your credit rating, the chances of you getting an expensive handset like the Apple iPhone with a contract of £45 a month is virtually impossible. So steer clear from these expensive combinations and other packages which include free gifts when making your choice.
Tip #3 - Consider SIM Card Only Contracts
Easier Credit Checks & Approval
SIM only contracts have a much easier credit scoring criteria since a handset is not supplied with the contract.
SIM only contracts offer more minutes and texts than standard contracts and operate on short 30 day rolling contract.
If having applied for a cheap handset and tariff with Vodafone and 3 Mobile you are still declined, it is recommended you try again but with a SIM only contract.
After making regular repayments of your monthly bill, you will establish trust with the networks who will often allow you to upgrade to a free handset after a regular payment history is seen.
If you already have a handset you like, then SIM only contracts are worth considering.
- More minutes and texts than normal contracts
- 30 day rolling contract
- Keep your current phone number
- Use existing handset
Which Company Should I Apply With?
Each time you apply for a form of credit, the application will leave a 'footprint' of your on your credit report. It is said that the more applications you make and the more footprints you leave in a short space of time, the worse your credit rating will be.
Despite this, I would not worry about trying 3 Mobile and Vodafone before considering the SIM only option. In my opinion, if your credit rating is already quite poor, and you are struggling to get credit for a variety of items, then a few more footprints will not affect you too much in the grand scheme of things.
When you manage to get accepted at either of the networks, it may be wise to make sure you keep up with regular bill repayments to rebuild your credit rating.
Can You Get An iPhone With Bad Credit?
The iPhone is arguably the most coveted item in the mobile phone industry. With great features and a lot of free and awesome applications, this smart phone is one of the top choices for must-have accessories.
But for individuals with bad credit ratings, it is not easy to be approved for an iPhone. It is in the best interests of people with bad credit ratings to choose a mid-range model for a mobile phone when you are applying for a mobile phone contract.
A great solution for bad mobile phone credit ratings is to apply for a sim-only phone contract. Once you are approved for the mobile phone plan, it gets easier to upgrade plans.
At the end of the contract, you can freely choose whichever mobile phone model that best suits your style and your needs.
For the initial approval after having poor credit ratings, the best bet is for you to set your sights on mobile phone models that have been in the market for a while.
Realistically, applying for the latest mobile phone models does not give you a high probability of being approved for a mobile phone contract.
Need A Credit Card For Your Application?
Prepaid Credit Cards With 100% Guaranteed Acceptance
Many people with a bad credit rating tend to have basic bank accounts that come with cash cards such as Electron. When applying or a mobile phone contract, companies will rarely accept these types of cards, and a debit or credit card is usually required. A good option is to apply for a prepaid credit card such as Splash Plastic card.
Prepaid cards work exactly like a normal credit card, except that you preload the card with your own funds instead. Just like Pay As You Go phones, you can top up the card and never worry about spending more than you can afford.
You can spend without fear of debt or fraud at millions of retailers online or on the high street, you can even use it to withdraw cash from ATM's.
Since you are not actually borrowing any credit, prepaid credit cards have a guaranteed acceptance no matter what your credit rating is like. Prepaid credit cards are an ideal way to get your hands on a recognised card but without the need to pass any checks.
* No credit check or bank account required
* Use at over 25 million retail outlets and over 1 million ATMs worldwide, wherever you see the MasterCard acceptance mark
* Shop securely online, by phone or in store
* Top-up for FREE at 14,500 locations, including any UK Post Office® branch
Click to view Splash Plastic credit card the UK's first Maestro prepaid credit card.
Credit Check Tips
Understanding Your Credit Score
If you've ever been declined for such things like a mobile phone, loan or overdraft, you will know how frustrating it can be. This is especially true when all the lender will tell you, is that you have been declined and cannot tell you exactly why you were turned down.
Although each lender has their own particular particular criteria, there are a number of common factors which can affect your score. These factors can result in your application ether being accepted or declined.
Being aware of these factors can help you improve the chance of getting the finance you require.
Get a free copy of your credit report
1. Previous Bad Credit History
Previous history counts towards around 30% of your score. Things like County Court Judgements (CCJ's), defaults or missed/late payments will have a negative effect on your application.
These factors will remain on your file for 6 years, but things like defaults/late payments will diminish over time. If you have been making regular payments in the last year, then this will great help increase your credi t scoring.
2. Not Being Registered On The Electoral Roll
If you have not applied to be on the electoral roll at your current address, then there is a high chance you will be turned down for your application. The thinking behind this, is that you are not thinking of becoming a long term resident at the address and lenders are very wary of this.
3. At Current Address For Less Than 3 Years
Lenders prefer giving finance to people with continuity and if you have been at your address for 3 years or more, then your score will be considerably higher than if you recently moved to your current address.
Having a number of different addresses in the last 3 years will have a negative impact, and this is especially true if you are a tenant rather than a homeowner.
4. New Job
Having a stable and long term job is as important as living at your address for a number of years. Lenders obviously prefer people who have a steady employment record as they believe this will reduce the likeliness of you not being able to keep up with payments. If you have been at your job for a number of years, this will give a great boost to your score.
However, having two employers in the past 3 years is not all bad news. If you have changed jobs recently and have a higher salary than your previous employment, then this will not affect the check.
Lenders may require copies of your previous pay slips depending on the item you are applying for. If you need replacements, the following companies can help:
5. Not Having A Bank Account
If you have been with your bank for a number of years, then your credit score will receive a massive boost. Unfortunately, if you have recently opened a new account, or even worse, if you have no bank account, then this will have a negative impact.
Claim Your Free Credit Report
Knowing what is on your credit report can be very useful whether you have bad credit history or not.
The contents of your personal report can have a massive impact on whether or not you are given credit. Your credit rating may also affect the interest rate you are offered by lenders, which could lead to more costly borrowing.
You have the right to view the information contained in your credit report to make sure it is accurate. If errors are found, you are entitled to apply to have them corrected.
Get a FREE copy of your credit report
with CreditExpert. You will need to register with CreditExpert for a 30 days free access to your files. allows you get a 30 day free access to your credit files.
You should check your credit report if:
-You are about to make a major credit application, such as for a loan, mortgage or car.
- You have denied for a credit card, loan, or other credit-based service.
- You want to check and guard against identity fraud.
- You are planning on getting out of credit and want to make the first steps to clearing your credit history and debts.
Third of Brits Risk Refusal Because Of Missed Mobile Phone Payments
It has been said that more than 1 in 3 people in the UK will face refusal for finance because of their mobile phone. This is according to research by the agency Checkmyfile.
Checkmyfile reported that after looking at 1000 consumer credit files, they found that 36.6% of consumers had mobile phone accounts with missed payments.
Barry Stamp of Checkmyfile.com, said he was shocked at just how many people had left themselves exposed to credit refusal in this way.
"Missed payments on mobile phone accounts are much more serious than most people realise..."
Nokia N82 Released Early On PAYG Because Of Bad Credit History
Pay as you go mobile phone networks are regarded as the most cost effective way of running a mobile phone because there is no contract and no line
rental charges although this is starting to change.
While it is unusual to see high specification handsets available on a pay as you go basis this has not prevented the new Nokia N82 from being released off contract in the UK.
The Nokia N82 is the latest addition to Nokia's premium N-Series of mobile phones and is available on O2 as well as pay as you go. It is expected that the N82 will also be released on other networks in the immediate future as new stock arrives in the UK and retailers are able to secure large numbers for connection to other operators. It is anticipated that this will give consumers plenty of options for owning this latest model high end mobile phone.
The criteria for credit used by UK mobile phone networks has left an increasing number of people unable to own a mobile phone on contract. This means that the only option they have is pay as you go or a Sim free phone. Phones without a Sim card are not connected to a particular network and this freedom means that you pay more for the handset.
You could be forgiven for believing that retailers are cashing in on these problems by making high end phones like the Nokia N82 available on pay as you go much earlier than has been the case. However, this could be a good thing for consumers with a poor credit rating as it increases their chances of owning a high end phone without the drawbacks attached to contract agreements.
Phone contracts