How different is a bad credit mobile phone contract from an ordinary phone contract?

Be as it may, what we can’t run away from is the fact that scores of individuals make ignorant decisions. People are fast to buy a given product without even ascertaining whether it will be good for them or not. Most of the time, their decision is influenced by the marketing done by firms offering the product and no research on their part. Unfortunately, this level of ignorance seems to have rubbed off the wrong way even on individuals seeking to apply for a phone contract. For the purposes of helping greenhorns in the mobile phone industry, we are going to shed light on how different bad credit mobile phones are from standard phone contracts.

Credit checks

As you very well know, credit checks are mandatory prior to getting approved for a phone contract in the UK. In fact, a person cannot be approved for a phone contract if they have a poor credit rating. The same cannot be said of bad credit mobile phones. The major selling point or rather strategy used by most bad credit mobile phone providers is the appeal of no credit checks. In reality, credit checks are a standard procedure. The difference with bad credit mobile phones is that the results have no impact whatsoever on the decision to approve or reject an application. In most cases, bad credit mobile phone providers use the results to determine the right deal or plan for a customer.

Perks

Perks refer to the benefits a person enjoys under a given contract. Bad credit mobile phones have been known to offer fewer benefits as compared to ordinary or standard phone contracts. As such, individuals on bad credit mobile phones enjoy comparatively less number of minutes, text messages, and data bundles in a given month.

Upgrade option

Those on standard mobile phone contracts easily upgrade to a plan of their choice without experiencing bottlenecks. The same cannot be said of bad credit mobile phones. In fact, most of the time, those on bad credit mobile phones rarely get an opportunity for an upgrade unless they prove beyond any reasonable doubt that they are not a risk to the business. There are providers that bring up a customer’s account for review after a couple of months provided that they have not missed a payment in the past.

Length of contract

Those on a standard mobile phone contract are at liberty to choose a contract length of 12 months. The same cannot be said of individuals under bad credit mobile phone contracts. Providers offering bad credit mobile phones insist that an individual should be locked in for a period not less than 18 months. Of course, this makes it difficult for an individual to switch should they wish to.

Interest rates

Getting a phone contract for individuals with a poor credit rating is an expensive affair no doubt. In essence, interest rates for bad credit mobile phones are high compared to standard mobile phone contracts. This means that those under bad credit mobile phones will part with a lot more on a monthly basis than those on a standard mobile phone contract.