When you have bad credit, it is often hard to get approved for a mobile phone contract from major providers. This is because bad credit implies that you were not a responsible payer at one point or another. You are therefore considered a high risk borrower which means getting approve for a phone contract may be harder than usual.
If you’ve been refused a phone contract a few times, you may be better off checking out no credit check mobile phones. These are phone offers that require no credit checks making it easier for people with bad credit to get approve. These types of phone offers are now also widely available online to cater to the growing number of people with bad credit issues.
Before you decide to apply for a phone offer with no credit check, however, it pays to understand the potential disadvantages which may include the following:
Limited Handset Selection
Providers that offer bad credit mobile phone contracts usually have limited handset selection. If you’re eyeing to own the latest handset from Apple or Samsung, for example, you won’t probably get the phone that you want. Phone contracts for bad credit generally only offer average priced handsets to keep the monthly fee more manageable for mobile users with bad credit problems.
Higher Monthly Fee
Another disadvantage has something to do with the monthly fee. Because you have bad credit getting in the way, the fees may be relatively higher than traditional phone contracts for people with bad credit. This is your provider’s way to reduce the risks on their part. In exchange, you are almost assured to get approve for your application because there are no credit checks to worry about. The application process for such phone offers is also usually done in 24 hour or less making it one of the most convenient options in the market today.