There are many customers searching for mobile phone contracts with no credit checks. But do they exist and are they legitimate? To better understand the answer to this question, it’s necessary to understand the economics behind mobile phone contracts. Mobile phone contracts subsidize the cost of the handset (it can even be free with the contract) in exchange for regular monthly payments (usually over two years), which also nets you some calling minutes, texts and data depending on what plan you spring for.
If customers default on these contracts, the carrier will essentially lose out on the value of the device, as it was subsidized in return for monthly payments. For this reason, no carrier will ever give a mobile phone contract without engaging in a credit check first. Those who have poor credit may have a tough time finding a deal suitable for them, but that doesn’t mean they will never get a deal. Such customers just have to scrutinize the plans and various deals offered.
If you have low credit, to increase chances of getting a new mobile contract you should first find a phone that has the lowest cost possible. One point to note is that older phones have better acceptance rate. By older, we mean handsets which are one generation behind the current lot of smartphones (usually 6 months or so old). If you still can’t manage to land a mobile phone contract, it’s time to dive into your credit report. Get your report checked for mistakes and incorrect charges. There are many options for checking credit reports online. You can accordingly fix the mistakes (and improve, if possible) and re-apply.
SIM only contracts are another feasible option as they have high acceptance rates and are relatively low cost, short term contracts. They can be used as your first step toward getting a mobile phone contract.