Guaranteed mobile phone contracts – the saving grace for those with a poor credit rating

Unless you’ve never applied for a phone contract, you will agree with me that the frustration that comes with being denied one is huge. The frustrations, embarrassment and the unworthy feelings cap the experiences of those with a poor credit rating who try to apply and get approved for a phone contract. In retrospect, this was the situation before bad credit mobile phones and guaranteed mobile phones became a reality. Mobile phone providers back then made it clear that a person had to have a good credit score in order to be approved for a phone contract. Those with a poor credit rating were on their own and more often than not had to contend with one rejection after the other.


Those with a poor credit rating badly needed a contract that could take their plight into consideration. Within no time, guaranteed mobile phone contracts were unveiled to the advantage of those with a low credit score. Applying for a phone contract suddenly became an easy thing to do for UK individuals with a poor credit rating. The uncertainty that accompanied mobile phone contract applications became a thing of the past with the introduction of guaranteed mobile phone contracts. In essence, guaranteed mobile phone contracts came with the promise and assurance of owning a nice new smartphone.

What this alludes to is that a person irrespective of the status of their credit score could apply and get approval. At last, UK citizens with a poor credit rating had something to smile about. Applying for a mobile phone contract was no longer a high tension activity but rather a pleasant undertaking. The dark days of the past were forgotten and a new era of equality was ushered in. Having a low credit score was no longer an impediment to approval and getting access to a phone contract no longer a daunting task.

However, in as much as guaranteed mobile phones were well received and gave those with a poor credit rating a ray of hope, there were a number of disadvantages that those who applied for them had to grapple with. For one, guaranteed mobile phone contracts attract high interest rates in comparison to standard mobile phone contracts. Those who applied for them have to contend with high interest rates which essentially means that they end up paying a higher amount.


There is also the issue of prolonged contract length. Those under guaranteed contracts have to be locked in for a period of 18 months and above. Of course, this makes it difficult to switch. A number of providers also require for applicants to pay an upfront security deposit prior to approval which of course is a thorn in the flesh of many people. On the positive note however, a new report by PhonesWorld alludes to the fact that guaranteed mobile phone contracts have been instrumental in helping people to gradually improve their credit scores. Guaranteed contracts give those with a low credit score a second chance to make things right. The secret of course is in ensuring that you meet obligations without defaulting!