Using a bad credit mobile phone contract to improve your credit score

Home / Using a bad credit mobile phone contract to improve your credit score

Now most people who apply for bad credit mobile phone contracts do so because they suffer from a history of county court judgments, bad credit ratings, have been blacklisted or worst still, declared bankrupt.


Often, however, they need a mobile phone and one on a contract basis at that. And while a bad credit mobile phone is the way to go in this regard, such a contract can also be used to actually improve your credit score. And we are sure you all agree, having a positive credit rating should be your ultimate aim in the long run!

But for many, this is a long and difficult road. Certainly, no one wants a bad credit history or the problems that are closely linked to one. If you suffer from this massive problem, you simply cannot get any form of credit product. Need a loan? Want a credit card? What about a house mortgage or even vehicle finance? They simply are not available to you if you suffer from a bad credit rating. By all means, apply. You will just get turned down time and time again.

And thanks to the global financial crash of 2008, a large portion of the population of the United Kingdom are sitting with a negative credit rating.

So fix it!

Using a bad credit mobile phone contract is one of the ways that you can positively impact your credit rating. Eventually, you can turn it from a negative into a positive. It just takes determination, regular payments and making sure that you never default.

No other product can be used in this manner. But how does it work? Well, think about it. With a bad credit mobile phone contract, you are taking out a form of credit and perhaps the only form of credit that you will qualify for in your current situation.

Although your credit rating is not considered when you are approved for a contract such as this you can still use this credit product to raise your credit rating. Yes, it will take some time but it really is better than nothing at all. And there are no other options available to you.


So how can you use a bad credit mobile phone contract to actually raise your credit rating? Well, it is so simple actually. Once you have taken out your contract, you will be expected to make monthly repayments of the terms you have agreed to with the contract provider. Generally, these terms are between 12, 18 or 24 months.

Now make sure that you not only pay the exact instalment each month but that you pay on time. In fact, if you wish to, you could speed things up in terms of paying off your contract by paying a little more when you can afford it. In this way, you not only pay off your contract quicker but it will also reflect positively on your credit report.

So by doing this diligently, you will ensure that by the time the contract comes to an end, your credit rating will indeed improve. Bear in mind of course that if you do have other credit products in your name, you need to pay the full instalment. Make sure you pay on time as well.

Many people actually opt to take out a sim-only contract first up, especially if they already have a handset. This means that in a 12 month period (the time these contract usually run for) they can influence their credit rating. After the contract is up, they can either take a regular contract (if there credit rating is now in positive territory) or again, they could choose a bad credit mobile phone contract.

Over time, by following this route, you will have a positive credit rating, something worth celebrating!