Are guaranteed mobile phone contracts the real deal?

The ultimate truth is that having bad credit is not a pleasant thing. In fact, in the eyes of lenders and mobile providers, you are financially irresponsible. What’s even more debilitating is the fact that to be approved for a loan or a contract when you have a poor credit rating is like looking for a needle in a haystack. It’s virtually a tall order. For long, UK citizens with a less than average credit score had to contend with one rejection after the other every time they thought of applying for a mobile contract. Even those with an average credit rating were not spared and had to bore the brunt of rejections from a number of providers. The situation was so bad that those deemed to have bad credit had no option but to go for Pay As You Go (PAYG) plans.

However, the emergence of guaranteed mobile contracts has changed the scope and the landscape. Those with a poor credit rating no longer have to spend sleepless nights wondering if their applications will be successful or not. Of course, the mushrooming of providers offering guaranteed mobile contracts has led many to ask whether guaranteed mobile phone contracts are the real deal or not. Are these kinds of contracts necessary? Do they offer the much needed respite to those with a poor credit rating?

Well to answer this question, we need to look at how guaranteed contracts have positively impacted the lives of those whose credit history is in shams. For starters, these kinds of contracts have been instrumental in providing those with a poor credit rating peace of mind. Applying for guaranteed contracts gives a person peace of mind in the knowledge that they have the assurance of being approved. The suspense, stress and second guessing that comes with applying for a contract is not there as credit checks do not play a significant role when it comes to guaranteed mobile contracts.

Secondly, while the general belief is that these contracts offer little in terms of benefits, the truth of the matter is that the kind of deal you get is generally dependent on your negotiating skills and loyalty. Majority of providers are willing to get you a better deal if you demonstrate loyalty or pay an upfront fee. In addition, you can also upgrade to a better package or plan so long as you demonstrate timeliness in so far as monthly payments are concerned.

Perhaps the most outstanding thing about guaranteed mobile phone contracts is the fact that credit checks are not a factor when it comes to approval. While credit checks are mandatory in the UK when applying for loans or mobile phone contracts, they are not a factor with guaranteed mobile phone contracts. In fact, providers offering mobile contracts simply do so to decide the plan that best suits you based on your financial strength. In other words, if you have a poor credit rating, then guaranteed mobile contracts are the real deal.