To be deemed financially irresponsible is something that many people loathe especially when they know that the status of their credit score is not a function of financial irresponsibility. However, this has not deterred many providers across the UK or even lenders to hold people with a poor credit rating in contempt. There is always a different kind of treatment when it comes to people that are deemed to have a poor credit rating.
For a long period of time, mobile phone providers all over the United Kingdom wanted nothing to do with people with a less than stellar credit score. They avoided them and rejected their mobile phone contract applications pronto. The resultant effect was a dip in self esteem and people with a poor credit rating feeling like they are lesser of human beings to those with a stellar credit history.
However, thanks to a change in attitude in recent years and the mushrooming of providers offering bad credit mobile contracts, the environment has changed drastically. It is now possible and simple to apply for bad credit mobile phones without breaking a sweat as was the case in the years gone by. With bad credit mobile contracts, applicants no longer have to worry about incessant rejections or applying to as many providers as possible with the hope that one of them approves their application. The general rule is that bad credit mobile phone plans are essentially designed for people with a poor credit rating. However, in as much as these contracts have breathed a new lease of life to people with bad credit, there are a number of features that a person should be in the know about them.
No Credit checks
You will agree with me that credit checks are mandatory and are used as a factor to determine the approval or outright rejection of mobile phone contracts applications. However, this is not a factor when it comes to bad credit mobile contracts. In fact, we can categorically state without flinching that we don’t run credit checks as a precursor to determining whether we approve you or not. In essence, what we are saying is that credit checks don’t play any role in the ultimate decision to approve or reject bad credit mobile phones applications.
Another important feature of bad credit mobile contracts is that they attract high interest rates as compared to ordinary mobile contracts. The assumption is that people with a poor credit rating are high risk and therefore providers in UK tend to apply high interest rates as a mitigating factor. It is generally designed to ensure that they cushion themselves from the risk of approving contracts without taking credit scores into consideration.
Perks and contractual commitments
Generally, bad credit mobile contracts are characterized by fewer benefits in plans as compared to standard mobile contracts. You get to enjoy fewer minutes, text messages as well as data bundles as compared to ordinary contracts. You are also required to commit for an extended period of time usually for 18 months and more which means you are locked into a contract for a longer period than is normal with other contracts.