The aftermath of the 2008 global credit crunch left many UK citizens deep in debt and grappling with a poor credit history. Even those who initially had a healthy history found themselves on the deep end of the swimming pool trying to make ends meet and keep their credit status afloat. The effect of this was that getting approved for a phone contract became a herculean task. Those who initially had a healthy credit history suddenly found themselves grappling with debt. Those who had a less than average credit score found themselves in an even worse situation.
With bad credit history being a thorn in the flesh of many people, those with a less than perfect credit score have always sought for cheap phone contracts. With the popularity of guaranteed mobile phone contracts and bad credit contracts becoming popular with UK citizens with a poor credit rating, questions abound as to whether these contracts are the solution when it comes to getting affordable contracts. Be as it may, we can’t be oblivious to the fact that guaranteed mobile contracts have indeed changed the lives of many UK citizens with a less than attractive credit score. However, the question on the lips of everybody is whether they fall in the category of cheap phone contracts or not.
Let’s take a look at some of the reasons as to why guaranteed mobile phone contracts do not fall in the category of cheap phone contracts.
The calls, texts, data bundles and monthly line rentals are more expensive than those offered on standard mobile contracts.
Upfront deposit: one huge reason as to why guaranteed mobile contracts are not in the category of cheap phone contracts is because they tend to have a requirement for applicants to pay a deposit upfront before they can be approved. If you don’t have the upfront payment, chances are that you won’t be approved.
You do not have a free hand to choose the kind of handset you want. In fact, you can never get approved if you need the latest high end phone because it poses great risks to the provider. You therefore have to choose from handsets that your provider has offered.
Interest rates: guaranteed mobile contracts are characterized with high interest rates which basically mean that you will have to dig deeper in your pocket to avail one for yourself. of course, the high interest rates make these contracts very expensive.
The lock in period for guaranteed mobile phone contracts cannot be less than 18 months in most cases. What this essentially means is that you will have to pay a high amount of fees monthly for a prolonged period of time making these contracts all the more expensive.
In light of the above, if you are seeking to enjoy the perks that come with a phone contract at an affordable price, it is essential that you think twice before you apply for guaranteed mobile phone contracts. However, if you have bad credit and without a choice, then guaranteed mobile contracts is your best bet however expensive they might be.