What you need to know about guaranteed mobile phone contracts

There is no denying that the most outstanding thing about guaranteed mobile contracts is the fact that it gives those with a poor credit rating the peace of mind and assurance that they will be approved for a contract. If you are a heavy mobile phone user or seeking to get the latest handset, then applying for a contract is of essence.

Once approved, you can enjoy a predetermined number of minutes, text messages as well as data bundles based on the plan you choose. Essentially, guaranteed contracts are primarily designed for those with a poor credit rating. It is the kind of contract where UK citizens with a poor credit rating can apply and be approved without having to go through the despair or stress that comes with applying other ordinary contracts. So what are some of the things you need to know about guaranteed mobile phone contracts?

For starters, you need to realize that guaranteed contracts are somehow costlier than your ordinary kind of contracts. Providers tend to price these contracts highly because of the risks they pose to them. Considering that credit checks don’t play a role in determining approval or rejection, providers feel that they need to price these contracts highly just to cushion themselves or mitigate the risks that come with approving those with a poor credit rating.

Secondly, unlike standard contracts, providers insist that a person should be locked in for a period of 18 months or more. What this means is that if you are applying for this kind of contract, then you should be ready to commit yourself to your provider for more than one year. Thirdly, these contracts generally have limited benefits. You don’t get to enjoy the same kind of benefits that standard contracts have. Generally, because of the risk factor, UK providers tend to limit benefits owing to the poor credit rating by customers. You also do not get to get the latest mobile device as they are costly and most providers never offer them with their plans.

However, if you pay an upfront deposit, there are a number of providers that would get you a package or plan with the latest handset. It’s all about mitigating the risk on the part of providers. Despite the few disadvantages associated with guaranteed mobile contracts, there is no denying that they have been a great source of relief especially to people with a poor credit rating. In fact, applications for a mobile contract are no longer a tall order. One simply needs to locate a provider of choice offering guaranteed contracts and they could be approved within 24 hours or in some instances 48 hours utmost.