All mobile phone contracts are broken down into four areas: the contract period (1-24 months) the price you pay, the monthly allowance (minutes, texts and internet allowances) and the phone you get with the deal, be it a normal contract or a bad credit contract phone.
After the credit check is completed, the mobile operator is alerted to the fact that you’re either a high, medium or low risk bad credit applicant. At this stage they will evaluate the risk you pose vs. the phone/contract you are after.
Dependent on the outcome of the evaluation you will be either accepted or rejected. No one wants to be rejected; it creates that horrible sinking demoralising feeling inside us all. Because we’re so nice here, and we want to guarantee you don’t feel that nasty feeling and you get your mobile phone, we have laid out our top 5 fail safe tips.
Fail Safe top tip no.1: Be realistic
This “being realistic” point is very important. People are either too optimistic, in that they expect to get an iPhone straight off, I am sorry folks, but this will not be your first handset. You do still pose a risk and the mobile operators have to shell out a lot of money at the start when they give the iPhone away for free, but do not worry because they do have some other fantastic phones on offer. On the other side of the coin, people are too pessimistic, they expect the worst, this is old school thinking, there is some great contracts available.
Fail safe tip no. 2: Know the mobile operators
We rate three mobile as the best overall mobile operator for people on bad credit. They have a range of tariffs and phones which will suit high medium and low risk candidates. From text 100 (their cheapest tariff) to the One plan (their premium tariff) they have the best monthly allowance (minutes, texts and internet allowance) as well as a superb range of the latest phones to choose from. They are also one of the most lenient operators in terms of approving poor credit applications.
T-mobile, we rate as the best mobile operator for high risk applicants; they have the cheapest tariffs (starting at £10.21) on the market, which is of perfect for those really high risk applicants. They match these tariffs with a great range of phones, so you low risk applicant could get your hands on something like the Sony Ericsson Xperia Play. They are the most lenient of mobile operators towards bad credit applicants.
Vodafone we rate as the best mobile operators for medium risk applicants. They have a great range of tariff starting at £10.50 going all the way up £50+ (which is outside our monthly cost bracket) As you would expect from Vodafone, they have all the best/latest phones too. Vodafone used to be really strict with bad credit applicants, but over the last 12 months we have seen more and more bad credit applicants approved.
Finally Orange, we rate orange as the best mobile operators for low risk applicants, they offer excellent monthly allowance and phones. Although their tariffs come with funny names (Dolphin, Panther etc.) they have something for every bad credit rick type. Orange have always looked favourably on bad credit applicants in the past and this continues today, however Orange will offer you a restricted contract for your first couple of months, if they feel you pose a significant risk.
Fail safe tip no.3: Understand your situation
As mentioned before, you will fall into three risk brackets, high medium or low risk (we also just saw the best operator by risk type). To ensure you get your mobile phone you need to understand which risk you fall into, as that will guide you in the direction you should be heading (and it will help you to be realistic).
if you’re a high risk applicant, you will have a terrible repayment history, you will constantly miss paying your bills, you will a huge amount of debt (over £10,000 without a mortgage) your account diversity will be weak, as you have been forced to cancel facilities where you kept missing payments, you will also regularly be rejected when applying for other/new credit facilities. A rule we swear by is this, if you’re a high risk applicant looking for a mobile contract only apply for contracts £15 and under.
Medium risk applicant will have a poor payment history, but you have paid your bills more than you have missed them. You will have a large amount of debt, but it is shrinking and your income is helping to pay it off each month. You will have account diversity (gym, store cards, home entertainments) and you get accepted more than you get rejected when you search for other/new credit facilities. As with high risk applicants, medium risk applicant should only apply for a pay monthly contract with of £25 and under.
Low risk applicants have got their finances in order, your shady days are well behind you, as is your current debt, it’s a lot smaller than the other two, you will have good account diversity, your current income allows you to manage the likes of; sky, the gym, store cards, broadband as well as clearing off your current debt. You always seem to get approved when you’re searching for credit these days. As with the other two risk applicants we have a rule we swear by for medium risk applicant looking for a mobile with bad credit only apply for contracts £35 and under.
Fail safe tip no.4: Use the information on the credit to your advantage.
Most people don’t, because they don’t know how to, a little bit of smart thinking and you can use the facts to your advantage.
High risk applicants should identify the times when they made your repayments, you should add up all the debt you have regularly paid off (particularly if it is above your monthly tariff) You should identify current pieces of credit which you could cancel which would enable you to pay your £15 a month tariff for your new mobile phone.
Medium risk applicants should identify the long periods of time when you have made all your payments, you should use your account diversity here too, to show the operators that you can manage multiple pieces of credit, all greater than the £25 a month your contract would cost. Again, you could identify pieces of credit which you could cancel.
Low risk applicant don’t have to do much, you really just need to show them that over the last 12 months, everything with your finances have been in order, you manage multiple pieces of credit and at the end of each month (when all your expenses have been taken from your income) you have more than enough to cover the £35 a month you contract would cost.
Fail Safe tip no. 5: Choose accordingly
Finally we will look at the tariffs and phones by risk type (by recommended operator).
High risk applicants, should apply to three and t-mobile.
T-Mobile, apply to the 10.21 plan, it will offer you 100 minutes, 1000 texts, internet access and a Nokia C3-01, all for £10.21 a month.
Three, apply to the text 100 plan, it will give you 100 minutes, 500 texts, 500mb internet access and a Nokia C3 Slate, all for £15 a month.
Medium risk applicants, should apply to three and Vodafone.
Vodafone, apply to the 20.50 plan, it will offer you 300 minutes, unlimited texts, 250 internet access and a HTC Desire all for £20.50
Three, apply to the talk 900 plan, it will give you 900 minutes, 900 texts, 1gb internet access and a Sony Ericsson Xperia Neo, all for £25 a month.
Low risk applicants, should apply to t three and orange.
Orange ,apply to the panther 35 plan, it will offer you 1000 minutes, unlimited texts, and unlimited internet access and a Motorola Atrix all for £35 a month.
Three, apply to the One plan, it will give you 2000 any network minutes and 5000 three-to-three minutes, 5000 texts, unlimited internet access and a HTC Desire HD, all for £35 a month.
If you understand your situation and you know what to say you get your hands on a great contract phones.