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How-Tos & Tutorials

How to Get the Best Phone Contract with Bad Credit History?


In today’s society, mobile phones have become an essential part of our lives, providing us with a means to stay connected to the world around us. However, obtaining a phone contract can be challenging, especially if you have bad credit. A bad credit score can make it difficult to access credit products, including phone contracts, which can be frustrating for those who need a new phone but are unable to pay for it upfront.

So, whether you’re new to the world of phone contracts or are struggling with bad credit, this post is for you.Today, living without one is unimaginable. But to perform most of these functions, smartphones need SIM cards like Talk Home Mobile to get all the data, minutes, and messages used for communicating and sharing your moments of joy.

More than 53.8 million Americans are using cell phones depicting that this mobile device has become a necessity for most people across the globe. A cell is not only a tool for communication but also a must-have in doing most of the daily chores of your life. You need cell phones for multiple everyday tasks from getting information, doing shopping, having entertainment, getting educated, or other things.

In today’s world, a mobile phone has become a necessity for most people. However, if you have a bad credit score, getting a phone contract can be difficult. A bad credit score can be the result of missed payments, defaults, or bankruptcy, and it can make it challenging to access credit products such as mobile phone contracts. In this blog post, we will discuss phone contract bad credit and what you need to know.

What is a Phone Contract?

A phone contract is an agreement between you and a mobile phone service provider. It usually includes a monthly payment for a specific period, usually 12, 18, or 24 months. In exchange, you get a mobile phone and a monthly allowance of minutes, texts, and data. A phone contract can be an excellent option if you need a new phone and don’t have the cash to buy one upfront.

What is Bad Credit?

Bad credit is a term used to describe a low credit score. A credit score is a number that represents your creditworthiness, and it’s based on your credit history. If you have a bad credit score, it means you’re a high-risk borrower, and lenders may be less likely to approve your applications for credit products.

Why is Bad Credit a Problem for Phone Contracts?

Mobile phone service providers usually check your credit score before approving your application for a phone contract. If you have a bad credit score, they may see you as a high-risk borrower and may be less likely to approve your application. Even if they approve your application, they may require a higher deposit or offer you a less attractive contract with fewer minutes, texts, or data.

What are the Options for Getting a Phone Contract with Bad Credit?

If you have bad credit and need a phone contract, you still have options. Here are some of them:

SIM-only Contracts: A SIM-only contract is a contract that doesn’t include a phone. You get a monthly allowance of minutes, texts, and data, but you’ll need to provide your own phone. SIM-only contracts are usually cheaper than phone contracts, and they’re easier to get even if you have bad credit.

Pay-as-you-go: Pay-as-you-go is a prepaid plan where you pay for the minutes, texts, and data you use. You’ll need to buy a mobile phone upfront, but you won’t need to pass a credit check.

Credit Builder Phone Contracts: Some mobile phone service providers offer credit builder phone contracts. These contracts are designed for people with bad credit and can help you improve your credit score over time. They usually require a higher deposit and may offer fewer minutes, texts, or data, but they can be an excellent option if you need a phone contract and want to improve your credit score.

Can I Get a Bad Credit Mobile Phone Deal?

We know that getting turned down for a mobile phone contract because of a bad credit check can become an embarrassing experience. You might have urgent calls to make or share a moment of joy with your loved ones across the border, and getting denied these opportunities can profoundly affect your family and work life.

Shot of an unrecognizable group of people social networking outside phone contract bad credit

The available Credit check cell phones plans available in the market require you to:

  • Buy a Phone upfront from the carrier at a full price
  • Bring your own unlocked phone
  • Reveal your entire credit history. Based on this, you will be provided with a cell phone.

Mobile Phone contracts are subsidized and need to go through a credit check if the user is applying for a Pay Monthly contract or any other mobile phone deal. Moreover, mobile phone companies provide expensive mobile phones and need a secure and trustworthy user for the contract.

Simply, with a mobile phone deal, you get to use the phone and pay back the cost of the new phone.

How do Get a Cell Phone with Bad Credit and No Deposit?

Are you someone who is planning to get a new cell phone but has a bad credit history? Even if you don’t have any credit history, don’t worry. There are ways through which you can get a smartphone without having to subject yourself to a credit check or paying a hefty deposit.

1. Get Yourself A Prepaid Plan

This is one of the easiest ways to get a cell phone, even if you have a bad credit history in part. Just like those prepaid cards in the past, a prepaid plan means that you will have to pay in advance for all the voice, text, and data service providers by your network provider.

Since you are paying in advance for your monthly bundle, this phone plan does not require any type of credit check. Moreover, even if you have a bad credit or credit history, these are some things you are always eligible for.

Most people believe that giving bulk cash in advance is not good. But the reality is not like that. With the prepaid plan, you have the choice of getting your favourite device along with multiple other benefits.

But one of the critical benefits of a prepaid plan is that you can get your own phone as long as it is carrier unlocked. If you are not aware your phone is locked or not, you can also read out our guide.

2. Buy Now, Pay Later Cell Phone With No Credit Check

Planning to get hands-on on the latest iPhone 13 but don’t have money to afford one? You are not alone. The exponential increase in the prices of mobile phones has made them difficult for most people. But at Talk Home Mobile, we have the solution to all your problems.

Get a Buy Now, Pay later cell phone. This type of financing model allows you to buy an unlocked cell phone with no credit check or any sort of initial deposit. Different websites like Klarna and Payzilch are actively working across the UK to provide you with Pay later phones. Such companies are offering you mobile phones without any credit check.

You can get your own mobile phone after completing the instalments. So opt for this service and enjoy the latest mobile phone without worrying.

3. Enroll Yourself in A Family Plan

Another simple way to get a cell phone even with bad credit is by joining a family plan. One of the most significant benefits of a family plan is that if the primary account holder has an excellent credit history, you will also enjoy the great offers that are not available to people with bad credit histories.

With a family plan, all the benefits of good credit history will be shared among all your family members. Moreover, you will get an exclusive discount on the calls, data, and messages you utilize with a family plan package.

4. Cosign With Someone Else

If you don’t have a family member to hook up with, you can still get approved for a cell phone plan if you get a cosigner with a good credit history. In this case, the phone plan will be in the name of the cosigner, so this might trick the company, and only they will be accountable.

These tips and tricks are pretty helpful, and there is always a good chance for you to get a cellphone even with a bad credit history. Most of these solutions are also effective in the long run, so make sure to apply these.

What to Do If You’re Refused A Phone Contract Because of Your Credit Score?

Got refused for a phone contract? Don’t worry. You are not alone. In this growing environment of financial instability, many people face difficulties maintaining a good credit history and paying their payments on time.

Therefore, if you have no luck getting a contract from any phone network, you do certain things to keep talking for long hours with your loved ones.

The first thing you can do is get a pay-as-you-go SIM from a company like Talk Home Mobile, which won’t require a credit check. You might also apply for a SIM-only contract with monthly bundles from this network.

Talk Home Mobile has the best network coverage across the UK. So, opt for this network even if you are willing to get a phone contract.

Interesting Read: How do I Transfer My Mobile Number To a New Network

Which Networks Have Phone Deals for People With Poor Credit?

Here are some of the networks providing you the best phone deals even with poor credit history.

Network Minutes Texts Data Monthly Cost
Talk Home Unlimited Unlimited 10GB £5.00
Now Mobile Unlimited Unlimited 10GB £5.00
ASDA Mobile Unlimited Unlimited 6GB £5.00
Smarty Unlimited Unlimited 3GB £5.00
Lebara 1,000 1,000 2GB £5.00
Lebara 1,000 1,000 2GB £5.00
Smarty Unlimited Unlimited 5GB £6.00
giffgaff Unlimited Unlimited 1GB £6.00
iD Mobile Unlimited Unlimited 1GB £6.00
ASDA Mobile Unlimited Unlimited 10GB £7.00
Smarty Unlimited Unlimited 8GB £7.00
Tesco Mobile 500 5,000 2GB £7.50
Smarty Unlimited Unlimited 12GB £8.00
iD Mobile Unlimited Unlimited 4GB £8.00
giffgaff Unlimited Unlimited 3GB £8.00
Smarty Unlimited Unlimited 30GB £10.00
ASDA Mobile Unlimited Unlimited 20GB £10.00
Voxi Unlimited Unlimited 15GB £10.00
giffgaff Unlimited Unlimited 15GB £10.00
giffgaff Unlimited Unlimited 12GB £10.00
Lebara Unlimited Unlimited 10GB £10.00
O2 Unlimited Unlimited 10GB £10.00

Built Your Credit Score with Talk Home Mobile

Switch to Talk Home Mobile and start building your credit score. You’ll have that new phone in no time once your credit score improves. Moreover, Talk Home Mobile won’t bound you to those long term contracts, so there is always a space for you to get the best mobile experience at a low cost.

Our mission at Talk Home is to eliminate financial inequality and give people a fair chance to go as far as they can. We are doing this by offering a proper path to good credit. Keep talking for long hours and never miss a moment of joy from your loved ones – only with Talk Home Mobile.

Interesting Read: How to Reduce Data Usage on Mobile? 8 Amazing Tips That Work!


What is a Credit Check For a Phone Contract?

Credit Rating is basically how a lender assesses you to see why they should

lend you money. In simple terms, this type of assessment involves an agency calculating the risks involved while lending money to you.

A credit check for a phone contract is essentially a way of predicting a borrower’s future financial behaviour based on how that borrower has acted in the past and when he should be made eligible for a handset on a contract basis or not.

For example, if you have faced a struggle to pay your debt in the past, this payment history will suggest to the lending firm that there is a high probability of you not being able to pay the debt in the future. Based on this parameter, the lending firm will avoid giving you a contract-based phone, and you might also be exempted from exclusive contact-based services.

SIMply, chances are that you might not get the credit you are applying for if you have a bad credit history. In such a case, your only option is to either opt for a PAYG SIM deal or Pay Monthly Deals from network providers such as Talk Home Mobile.

Can You Get A Phone Contract With Bad Credit?

By now, you might have figured out that you have a bad credit history. But can you still get a phone contract with a bad credit history? A simple answer to this question is: it depends.

Different networks have their own requirements that you need to meet before getting you approved for a contract smartphone. For you, this is good news, as you people with bad credit checks still have many options available depending on the individual score.

Moreover, this score is also helpful in getting you other deals and offers from one of the best brands in the market, like Talk Home Mobile. For instance, you may apply for an Apple iPhone 13 and get bundles or even a SIM-only deal that benefits you from a phone contract without subsidies on the handset or a router.

In case your application is denied, your last resort is to obtain your credit score from a local bureau and work on improving your profile. The first thing you need to do in future is to pay all your credit instalments due for the month on time.

If you cannot make your monthly instalment, make sure you update your company about it and try opting for a more affordable payment plan to protect yourself from financial debt.

What Phone Company Does Not Require a Credit Check in the UK?

In the following table, we list the SIM-only deals currently available in the market across the UK. These deals are exclusive of any type of phone contract. So, if you have a bad credit history, opt for any of these bundles and enjoy data, minutes, and messages across the UK at a minimum price.

Following phone companies require no credit check in the UK:

  1. Talk Home Mobile
  2. EE
  3. Smarty
  4. BT Mobile
  5. VOXI
  6. giffgaff
  7. Lebara
  8. iD Mobile

Do SIM-only Contracts Improve Your Credit?

Yes. A SIM-only deal is an effective way to improve your credit ratings. Most SIM-only deals involve a credit agreement. So, by keeping up with your SIM-Only payments, you can build up your credit rating.

This means that even if you cannot opt for a contract phone today, the SIM-only deal will ultimately bring your credit to a point where you can switch to any plan of your choice.

You can also read the guide here to know more about SIM-only deals and offers in 2022.

How to Improve Your Credit Score?

If you have maintained a bad credit score in the past, don’t worry. Your credit score can be easily improved. Improving your credit score is essential if you plan to get a phone contract in the longer run.

A good credit score makes a phone contract easier to pass and provide you with an excellent mobile networking experience. To improve your credit score, these are a few simple things you can do:

1. Register Yourself for Vote

Above all, the democratic rights of an individual provide lip service to an individual and have certain organizational benefits. Just by putting your name on the electoral roll, you can quickly boost your credit score in a few minutes and get maximum benefits for yourself.

SIMply become an active voter. A quick tip is to use the same address for your phone contract as you are using while registering yourself for the vote. A registered voter has financial stability in his life and is fervently participating in the dynamics of his state. Your voice becomes your channel for acquiring a Phone Contract.

Therefore, make sure to get registered and attain one of the numerous benefits of voting given by the government.

2. Avoid Making Too Many Applications

Remember that each application you make is noted on your credit check file. Therefore, avoid making too many applications. Sending too many applications in a short period damages your credit. Make sure you don’t make this mistake while asking for a Contract phone from your network provider.

3. Pay Your Bills on Time

You are financially obliged to pay all your bills on time. These bills represent your financial stability and represent that you are committed to paying a certain amount of money.

Always aim to meet your financial obligations for bills and mortgages on time. Else, you will face problems in getting more credit later.

4. Limit Your Credit Card

If you actively use your credit card, it is always better to stay within your credit card limits. Try to make the least payments through your credit card and avoid making unnecessary payments. A friendly piece of advice from the Talk Home Mobile Team is to not exceed your credit limit unless you absolutely have to make one.

5. Keep Your Address Same

If you are frequently changing your home address, it suggests that you don’t have much stability in your life. A credit provider might think twice before lending you any deal. Furthermore, most people risk giving money to a person who frequently changes his home address.

Reside at the same address for a more extended period if you want a phone contract.

6. Remove Your Financial Partners

Try to remove your financial partners because they might have a bad credit check, affecting your own reputation. If you no longer have connections, then make sure that your carrier provider and bank are aware of it.

Not just mobile phone carriers, but most companies keep a check on not only you but also your financial partners, so keep a good check on them too if you have one.

If you still cannot get yourself a nice phone, consider buying a good quality refurbished phone at a low price.

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