If you think a phone contract is the right type of deal to cater to your communication needs then you should apply for one even with bad credit. Most carriers may reject your applications outright but that isn’t always the case if you try a few tricks. Remember that major carriers tend to steer clear from customers with bad credit because of the high risks. If you can somehow lower the risks on your carrier’s end, chances are high that your carrier might reconsider and approve your application instead.
Here are some tricks you can try when applying for a phone contract:
Steer clear from expensive mobile phones
If you want to own the latest high-end handset, you might want to set aside that desire for now. With your poor credit rating to consider, you want to be smart with your handset choice. Because you want to convince your carrier that you are worth the risks, you’d want to stick with cheaper handsets. By doing so, you will keep the phone contract’s monthly fee at minimum cost increasing your chances to get approved as a result. For a comprehensive guide on how to choose the right handset, go to PC Mag.
Negotiate with your carrier by bringing a guarantor
Aside from choosing a cheaper mobile phone, you can further convince your carrier to approve your application by bringing a guarantor. A guarantor will essentially remove all risks on your carrier’s end. He or she will co-sign the contract with you. If you can’t repay the monthly fees, your guarantor agrees to pay for it on your behalf. The carrier wins in any case. Make sure your guarantor meets the eligibility criteria, which includes having a good credit score. If your guarantor is qualified, it’s very likely that your application will be approved.
Offer to pay a larger upfront fee than what is required
Carriers require upfront fees for most phone deals that include a high-end handset. If you were planning to apply for the latest phone releases, you’d want to prepare extra cash to cover for the upfront fee. Since you have a bad credit score, you’d want to go the extra mile by offering a larger upfront fee. By paying for most of the phone’s cost, you are essentially lowering the monthly fee consequently lowering the risks on your carrier’s end. This trick, however, will only work if you have extra cash to spare. Otherwise, you’ll just have to stick with choosing a cheaper handset or bringing a guarantor if you know anyone.