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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