How to get a phone contract with bad credit

Looking into a new phone contract but worried that a bad credit score might hold you back? Even if your credit report is a little less than perfect, there’s a range of options available to you!

Find out how your credit score can impact your chances of getting approved as we dive into how to get a phone contract with bad credit. We’ll explore the easiest phone contracts to get with bad credit and how to boost your credit score for a more financially healthy future.

In this guide: 

• Why can’t I get a phone contract with bad credit?
• Can I get a phone contract with bad credit?
• Easiest phone contract to get with bad credit
• What phone contracts can I get with bad credit?
• How can I improve my credit score?

Why can’t I get a phone contract with bad credit?

Before we dive into how you might get a bad credit phone contract, let’s explore what bad credit is. Your credit score is based on your financial history, and you may have bad credit if you’ve failed to meet repayment deadlines in the past on things such as mortgages, loans, or bills.

When you apply for a phone contract, you’re applying for a form of service or credit agreement. Whether you pay for a SIM-only deal or a handset contract, you’ll often be tied into a fixed-term contract. These can range from short 6-month terms to 32-month contracts and require a credit check for approval.

If you have bad credit, there’s a risk you may be rejected from taking out a contract due to the lender’s inability to confirm that you’re able to make prompt, timely payments.

Before applying for a phone contract, you should carry out a quick and easy score check online. You can get a free credit check from one of the three core credit reference agencies (CRAs):

• Experian
• Equifax
• TransUnion

However, if you apply for multiple contracts at the same time or are rejected for several applications, this can damage your credit score. This is because it can leave several hard credit checks, which stay on your credit report.

So, it’s important to check your credit score before making any applications. If you’re looking for a phone contract with bad credit, you can also compare options and quotes using soft credit checks as that won’t affect your report. Learn more about how credit checks work with our guide.

Can I get a phone contract with bad credit?

While getting a phone contract with bad credit isn’t simple, it can be possible. The outcome will depend on a combination of factors, such as your unique financial situation, the type and cost of the phone contract, and the lender’s eligibility criteria.

Also, it’s important to highlight that if you have bad credit, you may have more limited options than those with good credit. Nevertheless, there are ways in which you can secure a new mobile.

Easiest phone contract to get with bad credit

We’ve outlined some of the easiest ways to get a bad credit phone contract if you don’t have perfect credit history, or you’re still building your creditworthiness:

• Compare different value handsets: While there’s no such thing as bad credit mobiles specifically, comparing more affordable handsets will mean smaller monthly repayments. This means lenders may be more likely to accept your application. While you might not be able to secure the newest phone, this is a feasible option for many.
• Consider different providers: When it comes to contract phones and bad credit, eligibility criteria can vary. For instance, some providers will have more lenient lending policies than others, so you should shop around before settling.
• Pay a deposit or use a guarantor: Paying a deposit can make it more likely you’ll get accepted. Likewise, some mobile companies offer the option to get a bad credit phone contract using a guarantor (someone who will pay the money should you fail to do so). For more information on this, check out our guide: Do you need a guarantor? 
• Provide additional details: Your income and affordability are also considered when applying for a phone contract – whether you have bad credit or not. So, providing evidence of your income may help give you a better chance of being accepted.
• Compare different phone contract deals: If you have bad credit, you’re often more likely to get accepted for short-term contracts, which are usually SIM-only, or pay-as-you-go. These don’t usually involve a new handset, meaning lenders can be more lenient. With these options, you’ll need to purchase a handset separately but the monthly cost is much lower. If your current phone is still working fine, opting for putting a SIM-only deal willdeal into it will have the benefit of saving you money.

What phone contracts can I get with bad credit?

Each provider will have slightly different lending criteria, so it’s important to take time to shop around. You should carefully read the terms and conditions set out by the providers you’re considering.

• SMARTY, VOXI and giffgaff are examples of networks which offer no credit check SIM-only and pay-as-you-go deals. This can make them more accessible if you’re looking for a bad credit phone contract until your credit score improves. Meanwhile, short 30-day contracts may also help you manage your phone bill within your budget needs.
• Talkmobile also carries out soft searches on your identity (ID confirmation checks), which doesn’t include an in-depth credit check. So, you may be more likely to get accepted for a phone contract, even with bad credit.

While the above ways might help you get a contract in the short term, improving your creditworthiness should be a long-term priority.

How can I improve my credit score?

Boosting your credit score will not only mean you’ll be in a better position to secure the phone contract you want, but it can also help open pathways to a more financially healthy future. So, below are four ways to help build your credit score:

• Start the process of paying off any current debts: Ensure you’re making regular, prompt repayments to any debts you have. Pay bills such as your rent, mortgage, and household utilities on time also can help build a positive credit history.
• Avoid over applying for credit or opening too many accounts: Making too many applications for credit can signal to lenders that you’re struggling financially, and it may damage your credit score even further.
• Regularly check your credit history: It’s important to remain vigilant when it comes to your credit score. Keep your eye out for fraudulent applications in your name, and if you notice any errors on your accounts, dispute them immediately. Many use credit repair services for this, but it can also easily be done yourself.
• Register to vote: Signing up to the electoral register can help boost your credit score, as it means lenders can quickly confirm details such as your name and address.

There’s no denying that improving your credit score can take some time, but it will be worth it in the long run. Our guide on how to improve your credit score could give you some helpful advice too.

With an improved credit score, you’re more likely to qualify for the best offers. And, once you’re accepted for a contract, making regular, timely payments to it can boost your score even further, so it’s a win-win situation.

The bottom line…

With these helpful steps, we hope you feel more equipped about how to get a phone contract with bad credit. Remember, before agreeing to a deal of any kind, make sure you’re going to be able to meet the repayment terms.

Whichever option you go for, improving your credit score is something you should strive for. A good credit score will help with future renting and mortgage prospects, as well as better loan term approval rates should you ever need one.

Explore more guides and support

Why not boost your knowledge even further? Discover more financial insights and tips with helpful guides such as how long missed payments stay on your credit report and can use Buy Now Pay Later with bad credit?

If you’re concerned about debt or paying for priority bills, there’s always help available. Reach out to third-party charities and organisations such as StepChange, Citizens Advice, and MoneyHelper for free independent support.