Outstanding features of guaranteed mobile phone contracts
The undeniable fact is that the cost of living continues to spiral every single day. The resultant effect is that most people cannot entirely rely on their monthly incomes to meet their needs. Most have resulted to taking out a loan of sorts and at times repayment becomes a bit tricky especially if someone is laid off or becomes incapacitated. When this happens, a person’s credit score dips affecting their ability to get further loans or even getting approved for a phone contract. While in the past this was a teething problem and a huge matter of concern, the mushrooming of guaranteed mobile phone contracts has changed the landscape for the better.
Essentially, guaranteed mobile phone contracts were unveiled with bad credit individuals in mind. This type of contract gives you the guarantee of approval however bad your credit score might be. Anyone with a poor credit rating can apply and get approved for this kind of contract without a hassle. In light of this, it is important that we look at some of the outstanding features of guaranteed mobile phone contracts.
The biggest selling point of guaranteed mobile phone contracts has to do with the fact that there are no credit checks done. This is what has spurred thousands of UK individuals to apply for this type of contract. If you recall well, the reason that most people in the past suffered rejections was because of rejections. However, this is no longer the case as guaranteed mobile contracts do not attract credit checks and even if credit checks are done, they have no impact on the decision for approval or rejection.
Upfront paymentThe need to pay deposit upfront for some lenders is informed by two things:
- If you want to apply for a high end phone that poses the greatest risk to the provider. The higher the risk to the provider, the more they are likely to insist on a deposit upfront. However, this deposit is refundable at the expiry of your contract provided that you meet your contract obligation or your account is in good standing.
- If you have a history of defaults or CCJs then most lenders will insist that you pay an upfront deposit.
Guaranteed mobile contracts have a projected minimum contract length of 18 months. Most providers are not willing to approve your contract for a period less than that. Again, this is because you are deemed risky and therefore providers tend to lock you for a slightly long period of time. However, the maximum period is up to you.
Compared to ordinary or standard mobile phone contracts, guaranteed contracts have fewer perks. You will enjoy fewer minutes, fewer data bundles as well as fewer minutes per month compared to those on ordinary mobile phone contracts.