Are you looking for a new SIM or phone? Not sure if your application will be accepted. We examine how mobile networks affect your creditworthiness. We also discuss your options if your credit rating is not good.
How do phone networks check my credit rating?
Networks that require credit checks to verify your identity will contact credit reference agencies when you apply for a contract to purchase a phone or sign up for a SIM-only deal. They will also check your borrowing history and financial records.
Your network will use the information from the credit-rating agency (most likely Equifax or Experian) to decide whether you are eligible for the contract.
Most decisions are made automatically. In some cases, however, your application might be referred to credit-checking staff.
You may be unable to get a contract with any major network due to your credit rating. Instead, look into deals that are specifically for people with poor credit.
However, there are some important caveats that you should be aware of.
What networks will verify my credit rating?
The network you are applying to, and the type of SIM you are using will determine if you need to pass credit checks.
This is our network-by-network guide for credit checks.
For a phone contract, a network credit check is required For SIM deals, a credit check is require
- Asda Mobile – Contract N/A – SIM Only No
- BT Mobile – Contract Yes – SIM Only Yes
- EE – Contract Yes – SIM Only Yes
- giffgaff No
- iD Mobile – Contract Yes – SIM Only Yes
- Lebara N/A No
- O2 – Contract Yes
- Plusnet Mobile – Contract Yes – SIM Only Yes
- Sky Mobile – Contract Yes
- Smarty N/A
- Tesco Mobile – Contract Yes – SIM Only Yes
- Three – Contract Yes – SIM Only Yes
- Virgin Mobile – Contract Yes – SIM Only Yes
- Vodafone Yes
- Voxi N/A
Which network has the best coverage?
What happens if my network credit checks fail?
- You can apply for a similar deal with another network if rejected for a new SIM or phone. Different networks use different lending criteria. One network may reject you, but that doesn’t necessarily mean another network will not approve you.
Be careful, however: If you apply for credit multiple times in a short time frame, it could cause long-term credit damage.
It is important to understand why you were turned down. This is a case where you should get a credit report from the major credit-rating agencies.
You can then start to make it right once you have that information. It could be that you aren’t on the electoral rolls at your new address, or you have missed payments on a loan.
What is the reason I failed a mobile credit check? - Bad credit scores could be a reason why you were rejected. Or you may have no credit history in the UK. You may not be on the electoral roll or have incorrect credit files.
- A credit report is the only way to be certain. This report will show you any factors that may have negatively impacted your credit rating, such as missed payments on a card.
- Also, be aware of incorrect addresses and financial information.
- Our guide will help you understand why your credit score may be low.
Can I get a contract for a phone with bad credit? - If you have poor credit, your chances of getting a phone are much lower. You can still get a phone on a monthly contract.
- For example, No-Hassle Mobiles allows you to purchase an older iPhone or Samsung Galaxy phone with no credit checks. You will need to first sign up for a SIM-only plan and then pay on time for three months.
- Bad-credit contracts can be a little more costly than standard phone plans due to the fact that they usually have higher fees.
- Bad-credit companies often charge more upfront for their phones. You will need to pay a higher lump sum than usual.
- Contracts for people with poor credit will limit your options when it comes to phones.
- While you may be able to choose from a variety of phones, including older models and flagship phones, it’s unlikely that you will find the most recent, top-of-the-range smartphones.
Other options to get a cell phone if your credit is not good
Another option is to get a new SIM-free phone and then get a 1-month SIM that you are more likely to be accepted.
This is because you will need to make a lump payment upfront to get the phone.
If you are denied for a SIM for one month, you may be able to get a SIM that you pay as you go.
You don’t have to sign a contract, and you can pay as you go.
It’s important to note that SIMs purchased as-a-service are not as cost-effective as SIMs with a one-month term or SIM contracts with a longer duration.
Is it possible to get a SIM-only contract with no credit checks?
Yes, you can. However, your options are limited. Asda Mobile and Smarty are some networks that will allow you to have a SIM-only deal without checking your credit rating.
For SIM-only deals, O2, EE, and Sky Mobile are better-known household-name networks.
What information do I need for a credit check with the network?
Networks may ask for your personal information, such as your name, date, marital status and current address. They might also ask for your employment status.
It is possible to be asked for information about your bank account or credit card.
You can expect to be asked additional questions, such as about when they were opened.
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