Getting a contract phone is not always a piece of cake. Often you need to have good credit to qualify for a contract phone. However, a lot of tempting offers are available only for those with a good or even excellent credit score. It’s easier for people with good credit scores to gain trust from companies. The companies will consider them as good risks. On the other side, it’s common for phone companies to turn down people with bad credit. Bad credit contract phones instant decision or any contract phones is, in a way, a privilege. Let’s find out how to get contract phones with bad credit.
Credit history and credit reports
How do you know whether you have good or bad credit? The credit we are talking about refers to your credit history. It shows how you use your money by collecting information about your loans and credit card. Some of the biggest credit reporting companies in the U.S. are TransUnion, Equifax, and Experian. They collect your information and turn them into a credit report. It’s like a summary of your credit history. It contains your basic information such as name, Social Security number, and your financial information.
Besides loans and credit cards, it also shows how much money you owe and whether you pay your bills on time. You can ask for a free copy of your annual credit report by dialing 1-877-322-8228. You can also access the Annual Credit Report website through your browser.
Credit history also acts as the basis for your credit score. The higher the score, the better your credit is. There are some types of credit scores. FICO Scores is the type that is wide-used in the U.S. A FICO score of 300-579 is considered low. While high credit scores range from 740-850. Another one is VantageScore, developed by the three major credit companies.
An important point is phone companies may have different criteria for credit score. However, a credit score doesn’t come with the free credit report. You need to pay some fees to find out your credit score. To save money for more important thing though, we would recommend you to get the free report. The report itself tells a lot about your credit state, why waste some money?
What if I have no credit at all?
You might not have a credit history if you have no credit card nor gotten a loan. Yes, to get credit, you need credit. And this can be a bummer. But there are some simple ways that you can do. You can start building your credit by getting a credit card. It can be a secured credit card or even a store credit card. Both of them will help build your credit. Another thing is to pay the utility bills in your name. Some utility companies may put billing information into a credit report.
Remember that getting a credit means you have to maintain it and get on the good side of credit companies. It’s important to pay the bills on time as it hugely affects your credit score. Having really bad credit might be riskier than having no credit at all. Your credit history will be a deciding factor when you get an apartment, a car, or even a contract phone.
Bad Credit Contract Phones Instant Decision
Having bad credit tells two things about you. First, you likely pay your bills late. Second, it’s also likely that you have a big loan and owe a lot of money. Bad credit would lead you to limited loan choices. Companies have to make sure that you can still pay your monthly payment despite having bad credit. Bad credit contract phones instant decision might be available for people with poor credit, although very limited. You may also need to make some adjustments and do some ‘tricks’ to get a contract phone.
For example, apply for a lower-end phone rather than the newer high-end ones. With bad credit, going for high-end phones will only decrease your chance to be approved by the company. If you only need a new SIM card, there is also a SIM-only contract which involves no mobile phone. It increases your acceptance rate because it’s way less risky for the company — you are only paying for the network. Still, this option might not be preferable. We list down more preferable ways that will allow you to get a new phone, even with bad credit.
1. Buy Now, Pay Later
Buy Now, Pay Later is a phone financing model that is quite popular. This deal lets you buy a cell phone without going through a credit check. Some of the best buy now pay later sites for bad credit are Leaseville and Rent Delite. The deal is you pay a monthly fee for 12-24 months. During this period, the phone is not entirely yours. It’s like a rent-to-own deal.
You only get to own the phone after you complete the installments. But keep in mind that this deal doesn’t usually come with the phone service. You will still need to pay for your monthly plans alongside the installment. Another downside, some companies that might take an advantage of your bad credit. Be extra careful before making a deal. Do thorough research on the company. Make sure to read the whole contract and check if any terms could put you at disadvantage.
2. Family Plan
If you are still living with your parents or family, you can enroll in a family plan. A family plan assigns a person as the main account holder. It’s even better if they have good credit. The entire family will get to enjoy the good-credit-only deals no matter what their credit scores are. Family plans are also usually more affordable and offer more discounts. There’s hardly any loophole for a family plan. If anything, the members have to be responsible and pay their monthly payment on time. A failure in paying one member’s installment will affect the others. The main account holder would likely be the one held accountable for it.
3. Get a co-signer
What if you are living alone? You can get someone with good credit to co-sign with you. A co-signer is someone who signs the deal on behalf of you. This means the phone will be in their name. It’s important to get someone you have mutual trust with. They are the ones who will be responsible if you fail to make the payments. But there are some instances in which companies allow you to move the account. That way, you can take over the account when you have a better credit score. Due to its impermanency, it may help you to convince your friend to be your co-signer!
4. Go for a prepaid plan
A prepaid plan is usually accessible for people with bad credit. Bad credit contract phones instant decision is almost a guarantee with a prepaid plan. One condition: you need to have enough cash. Instead of checking your credit score, it requires you to buy a phone upfront at the full price. Then, when you own that phone, you will have to pay your monthly payment in advance. You will not be able to use your phone services unless you pay for it. These two conditions put phone companies in a little to no risk; hence it’s unnecessary to check your credit score.
A prepaid plan also benefits those who want to get newer smartphones. You can pick your desired phone and carrier to your heart’s content. The financial decision is all yours. If you go for high-end phones, you will need to pay a higher price. You can also play some ‘trick’ here. The thing you need to know about a prepaid plan is you don’t have to buy a phone from them. It’s all good as long as you have an unlocked phone. Read about getting unlocked cell phones with no credit check here. You can get a second-hand smartphone or a new one from other stores with a better price, and sign up for the prepaid plan.
While having good credit can be an advantage, bad credit doesn’t mean the end of the world. Remember that a smartphone is still more affordable compared to housing and cars. It means the credit criteria are usually looser. There are also other ways to get them despite your credit score. If you are the type to stick to your plan, the Buy Now Pay Later without credit check option might be suitable for you. For you who are living with your family, consider getting a family plan. For lucky ones with a trustworthy friend, you can ask them to co-sign with you.
Finally, if you got too much cash on your hand, buy the phone at full price through a prepaid plan. All in all the choice is yours! We hope this article is a good read and gives you insights on getting a contract phone. Please don’t get too upset if you have bad credit. Bad credit contract phones instant decision can still be accessible for you!