How To Deal With Mobile Phone Contract Online Rejection

Mobile phones bought individually can be expensive and therefore many UK residents choose mobile phone contracts. Finding a mobile phone contract can be perplexing and sometimes you even need to pay a deposit to get a contract phone. This depends on your credit rating also. If you have a bad credit rating then your application can be rejected for contract phones or you may be asked to pay a hefty deposit. Still, many mobile phone contract companies offer no deposit mobile phones, but you need to commit to regular payments for 18 or 24 months depending on the length of the contract you have signed for.

If you are finding it challenging to get a mobile phone contract then here are a few things to consider.

How To Deal With Mobile Phone Contract Online Rejection

Why is your application getting rejected?

When you are turned down by a company for a mobile phone contract you may ask why my contract application is rejected? The reason is, your credit report has been checked by the provider, and you are considered a high-risk customer who may not be able to keep up with the monthly payments.

Providers check your credit history when you apply for a contract phone. If your credit history manifests that you are bad with managing money then your application can be rejected. Some reasons for rejections are stated below:

● Not registered on the electoral roll. This makes it difficult for the provider to verify your address and identity.

● History of late payments and missing bill payments. This makes the providers think that you are someone who finds it challenging to manage money.

● Holding a joint account with someone who has a bad credit history

● Any Individual Voluntary Agreement (IVA) or County Court Judgement (CCJ) on your credit file. This indicates your financial hardships.

● No credit history. This is a reason for rejection for those who have never taken any type of credit so providers cannot judge your money management here.

Checking your credit score

If you do not know why your application is rejected then checking your credit report is a wise decision. This will help you understand what information on a credit report needs attention.

Get in touch with three main credit reference companies known as TransUnion, Equifax, and Experian to get your credit report. Experian gives your credit report for free.

Calculation of credit score varies between the agencies but it helps in giving an idea to the provider of how reliable you can be in handling monthly bill payments.

Things you can do on rejection

If you have a bad credit rating then avoid applying for a contract phone because every provider will run a credit check and reject your application. This will show on your credit file that you have applied for several contract phones and were rejected by the provider. It will impact your ability to get credit in the future.

The best thing is you can still get a phone with a bad credit rating. Let’s see how you can get it:

● Pay upfront: 

Paying a deposit upfront can help you get a mobile phone contract. This is done so the network provider can offset any risk in case you fail to make payments. The deposit amount will vary depending on the credit status, provider, and the deal you want. In most cases, you get the deposit back if you are making payments consistently. The time may range from 3 to 12 months.

● SIM-only tariff: 

If you can buy a handset upfront or have an old phone then you can choose a SIM-only deal. These deals are cheap because you do not have to pay for a handset, unlike contract phones. The provider will still run a credit check but the chances of being accepted are greater because the payment for these contracts is low and there is less risk for the provider. SIM-only deals are ideal for those who want to showcase themselves as a responsible customer who pays bills on time. It is also great for boosting your score over time.

● Pay As You Go deal: 

If you need a phone for occasional use then pay as you go deal will suit you. You just need a handset and you will pay for the credit when you need to use the phone. There is no credit check and you do not have to commit to a contract.

● A bad credit contract: 

Phone contracts for bad credit? There are a few companies that offer contract mobile phones for bad credit and you can speak with an adviser in a mobile phone store or do an online search. However, in this case, the monthly payments may be a little high and you may get a mediocre phone model.

How to get a mobile phone contract with bad credit?

If you are looking for mobile phones on contract bad credit then check the deals online. Many providers welcome bad credit ratings and they do not run a credit check as well. You can get a phone contract online and all you have to do is check their deals and compare the prices. You need to meet some basic requirements to get contract phones.

Firstly, you should be registered on the electoral roll and secondly, you should have a bank account. They have a few terms and conditions to which you need to abide by but most of these providers who offer phone contract bad credit deals give pensive handsets as well. You certainly need to meet the terms to get the expensive phone but here is an additional tip.

Additional tip: Taking a cheaper deal, paying something upfront, and rebuilding your credit can help you get an expensive phone in the future. If you focus on rebuilding your credit you will be in a far better position to get approval for the contract phone.