Guaranteed mobile phone contracts

At HB Phones, we really love scouring the internet for things in the world of mobile phones that we think will help people. And in these tough economic times, everybody can do with a little bit of help, can’t they?

We are particular fans of something called a guaranteed mobile phone contract. But what is it exactly and who can apply for one? Let’s take a closer look that these contracts that are revolutionising the mobile phone industry in the United Kingdom.


Guaranteed mobile phone contracts – who can apply?

Basically, anyone is able to apply for such a contract but without a doubt, they are aimed at a very specific target market. And this target market is people who suffer from a bad credit rating, those who have been declared bankrupt and those who are blacklisted from other credit products.

It can also be used by people just starting out in their working careers, especially as a way to build up their credit rating, something they simply do not have at that point in their lives. Because they have no credit history to be judged on, many lenders will not give them any credit products.  A guaranteed mobile phone contract can be used to help overcome this problem.

But without a doubt, providers have made these types of contracts with those individuals suffering from a poor credit rating. Finally, they too can have a mobile phone contract after facing rejection time and time again.

How does a guaranteed mobile phone contract operate?

Nothing could be simpler really. In fact, you can apply here now!

You will need to provide a number of documents when you do apply. Normally copies will suffice, but sometimes a provider may ask for originals or perhaps even certified copies thereof. The documents you will need include your personal identity document in the form of an ID, driver’s licence or even a passport, your last three payslips from your employer, proof of residence (bring a utility bill along) and finally, bank statements from your main account for the past three months (six months if you are self-employed).

Once they have all the relevant information, they will process your application which takes anything from a couple of minutes up till 2 hours. Upon approval, you will be shown a number of handsets in the price range related to your income and expenditure. Remember, you want to be able to pay the contract off easily each month, so the company should never put you under financial pressure with your contract.

Contracts also vary in length. Shorter contracts, for example those for 12 months, generally have less expensive handsets attached to them. The advantage with these is that they can be paid off in a year, improving your credit rating quickly. If you want a more expensive handset attached to a 12-month contract and you can afford it, by all means, go ahead. Be prepared to pay higher monthly instalments, naturally of course.

With longer contracts, up to 24 months, you can push monthly instalment payments down. It really is up to you at the end of the day as to which options you choose.

Take note, you will be rejected for a contract if you are not a resident of the United Kingdom and if you are younger than 18 years of age.


What handsets are available?

Well depending on the provider, there are a range of handsets available. Many providers even have access to Apple iPhone 7 and Samsung Galaxy S7, the two flagship phones in the world today. Of course, these do not come cheaply, so expect to pay a large deposit upfront to secure them as well. This will be paid back to you once you have finished paying off your contract.

Other phone options include older model smartphones that have been refurbished (think here of iPhone 5s and Galaxy S5) as well as a range of budget smartphones. Sometimes these are simply your best bet as they not only can do pretty much everything the flagship smartphones can, they are also much cheaper each month.

So in a nutshell, guaranteed mobile phone contracts are the perfect way for those suffering from a bad credit rating to finally secure the phone of your dreams and just when you thought it was not possible.


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Using a guaranteed mobile phone contract to help improve your bad credit rating status

The penetration of mobile phones into the world market continues to grow at an unbelievable rate. In fact, it has been a little over 20 years since mobile phones became mainstream. In that time, they have become the gadget of choice for many, so much so that it is estimated that there are 6.8 billion mobile phone subscriptions on the planet.

That’s not handsets, it is just subscriptions – paid for contracts. Imagine how many active handsets there actually are. The thing is that it is not really that easy to get a mobile phone contract either, especially for those who suffer from a bad credit rating.

Most mobile phone providers will simply send you away if you apply for one. Their reasoning is sound as well. Although it may be through no fault of your own, you have defaulted on contract/credit payments before and they simply see you as too much of a risk to give you a monthly contract with a handset attached to it.

But that is where a guaranteed mobile phone contract comes in. Not only will a guaranteed mobile phone contract provider give you a contract with a decent handset but you can use this contract to actually improve your credit rating. This is something that you should be seriously trying to do at all times as a bad credit rating can really affect your life in so many ways.

How does it work?

But just how does a guaranteed mobile phone contract help to improve your credit rating? Let’s take a closer look.


A guaranteed mobile phone contract is a credit product, no matter what way you look at it. Even though it may be structured slightly differently to other mobile phone contracts, you are still signing a credit agreement. This means that for the handset and the right to use it (receiving a certain number of talk minutes, texts and data), you will need to pay a monthly contract fee.

This is a pretty big deal! Why? Well with a bad credit rating, the chances of been approved for any other credit products are ZERO! Credit cards, house mortgages, vehicle finance, personal loans or in fact, any type of credit product you can think of is beyond your reach. You will simply get turned down each and every time you apply for one. But with a guaranteed mobile phone contract, you have something that can be used to improve your credit rating slowly and effectively.

This is done simply by using it in an intelligent manner. You could even perhaps start by taking out a shorter sim-only contract for a period of six months. Using your old handset instead of a new one will keep the monthly costs down. It still remains a credit product, however, and by taking it out for a shorter period (there is no handset to pay off after all), you can quickly work on improving your credit rating.

After a six month period, you can take out a new contract. Do this a few times and your credit rating will quickly move into a more positive territory. Of course, you may still want a handset and by all means, if you do, rather take a contract with a handset attached to it. Note, however, this will obviously take longer to pay off, normally a 24-month contract and while it will still result in improving your credit rating, it obviously will take longer.

Finally, as your credit rating improves, you simply unlock the door to more credit products, even those from regular banking or financial institutions. Use these to further improve your credit rating but it is very important to remember to not overextend yourself at all. If you do, you may find yourself in a position where you have difficulty in paying off your loans, causing you to miss payments and start the bad credit process all over again.

Without a doubt, people suffering from bad credit ratings using a guaranteed mobile phone contract intelligently do not only get a handset but also the chance to improve their credit rating and their financial lives in the process.


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What positives does taking out a guaranteed mobile phone contract hold?

If you, like millions of residents of the United Kingdom suffer from a bad credit rating, you know how this can affect your life on a daily basis. Take a mobile phone contract for example. You simply will not be able to get one from a top UK service provider if you suffer from a bad credit rating.

Luckily, with a guaranteed mobile phone contract, people with bad credit ratings still have access to a range of mobile phone handsets and on a contractual basis, paying it off monthly – much like a normal mobile phone contract works.


But it’s not just the fact that you will finally have that new handset that you have always craved. There are many other positives that can be linked to taking out a guaranteed mobile phone contract. People simply do not know about them, so the purpose of this blog post is to inform those of you who are thinking about taking out a guaranteed mobile phone contract but remain undecided.

Application is simple

Perhaps one of the biggest advantages of a guaranteed mobile phone contract is that applying is so simple. Not only that but you will know whether you are successful in less than an hour in most cases. Most guaranteed mobile phone service providers will require a number of documents from you to complete the application but these are easy to obtain. In fact, you will have most of them at home already.

They include your personal identification (either your ID document, passport or even a driver’s license), payslips from your employer for the last three months and finally bank statements for the last three months.  Nothing could be simpler really. Perhaps the most difficult thing will be choosing a handset from the large amount of makes and models they have on offer!

You are almost guaranteed to be approved

It is really difficult to be rejected for a guaranteed mobile phone contract, hence the name! Many thousands of people across the United Kingdom get approved for these contracts on a daily basis with the rejection rate extremely low.

That been said, you can still be rejected but mostly for only two reasons. The first is that you are not a resident of the United Kingdom. Only residents may apply for a guaranteed mobile phone contract. If you are not a resident, don’t apply otherwise you will face rejection. Secondly, you have to be 18 years of age to apply for such a contract. Even if you are 17 and earn money from a part-time job, you won’t be eligible for one of these contracts. Having said that, what 17-year old has a bad credit rating and is likely to apply!

Improve your credit rating

A guaranteed mobile phone contract is a great way to build up your tarnished credit rating. You may suffer from a negative credit rating, so much so that you cannot avail any other form of credit, let alone a normal mobile phone contract. By using your guaranteed mobile phone contract intelligently, paying it off every month on time and ensuring you never default on a payment, your credit rating will improve immensely. This will open up the world of regular credit products from your local bank – products that are difficult to live without including mortgages. We have covered this in more detail in another post found here on our blog.

The wide range of contract options and handsets available

Now one would think that as guaranteed mobile phone contracts are the only way that someone with a bad credit rating can get their hands on a mobile phone on a contract basis, that their choices would be limited.


This is far from the case! There are a range of contract options available when it comes to bad credit mobile phones including sim-only contracts. But it is the sheer range of handsets on offer that continues to amaze us. Apple iPhone 7 – check. Samsung Galaxy S7 – check. A range of budget smartphones – check. Refurbished older model smartphones – check. Entry level phones for those who just want to call and text – check! Guaranteed mobile phone contract certainly offer so many options, you are sure to find a handset that you not only like but that fits your pocket as well.

We are sure you will agree, a taking out a guaranteed mobile phone contract certainly has many advantages.

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