Although bad credit mobile phone contracts offer opportunities for people who can't purchase handsets outright, we will admit that like all options, it does have its disadvantages as well. However, with enough creativity and snooping around, you can find a lot of workarounds for many of its disadvantages. If you are hesitant about getting a contract because of the disadvantages mentioned below, you may be intrigued by the solutions we have.
Most people will agree that lock-in periods are their least favourite part about getting a mobile phone contract. It does feel limiting and intimidating, if you think about it a lot. However, as most people would say, it's all in the mind. If you're extremely conscious about your lock-in period, the time will tick by very slowly. However, if you don't mind it as much, then you'd hardly notice it at all.
Aside from this, you could just look for a contract with a small monthly lock-in. The minimum is around 6 months lock-in period, and in return, you have to pay a deposit upfront. If you can afford the deposit, a 6-month lock-in is a great option. Also, you can add some life to your current plan. Choose a provider that is flexible when it comes to trade-ins and upgrades. For example, if 6 months down the line a new phone is released, you can opt for a trade-in with some providers so you can upgrade your handset to the newest model. Flexible plans that offer a lot of opportunities for trade-ins and upgrades will make you feel less suffocated by the lock-in period.
Sure, the monthly payments may be easier on the pockets compared to simply buying the phone outright, but if you total the amount you pay for during your lock-in period, the phone will cost more under a contract than if you buy it outright. This is especially true with bad credit mobile phones, were higher monthly rates are part of the company's security measures against high risk clients.
The only workaround to this is to get a shorter lock-in period. As mentioned in the earlier parts of this article, shorter lock-in periods come with a price, namely upfront deposits. However, if you can afford it, by all means use it. Your credit rating also plays a huge part and the worse it is the more security measures are put in place. If your credit rating is really bad, you won't get an option for a 6-month lock-in period because it means higher monthly payments, which the company will decide is out of your reach. Your only recourse is to try and improve your credit rating beforehand so more options are available to you when you apply.
Well, obviously, no company will trust a person with bad credit rating with the latest and most expensive handsets. Most handsets offered as part of bad credit mobile phone contracts are less popular. If you want the latest handsets together with your monthly plan, you need to improve your credit rating fast. You can also opt for a flexible plan, earn the company's trust after a few months of being a model customer, and then try to get a better handset as part of a trade-in deal.
There will always be drawbacks, and although they say people with bad credit can't afford to be picky, it's understandable that you'd want better things in the future. Most disadvantages associated with mobile phone contracts can be fixed through the proper mindset, and others solve themselves if you're patient and determined enough.