Bad credit SIM only
If you have a bad credit history and doubt you may not be able to get many of the mobile phone contracts that are available or have already been declined when you have applied for a mobile contract phone. Then you may want to consider SIM only contracts, as there is less financial risk to the mobile providers as these contracts are on a monthly basis and no expensive handset is supplied with the contract.
Reasons for bad credit history
Bad credit history can occur if you have CCJs, unpaid loans, or caused by bankruptcy as these records stay on your credit report for a certain period time and can subsequently give you a low score. If you have defaulted on your mortgage and missed credit card payments this can also affect your credit score. People with no credit history will also score poorly as there is no credit history recorded against them, students will be affected in this category. This is why bad credit mobile contracts are great for parents, for their sons and daughters in colleges and universities.
How to improve your credit history.
One of the many ways to improve your credit history would be to not miss payments and to pay bills on time as this will go a long way to increase your credit score in the future. It will also help your record if you are able to pay more then the minimum payment each month. Reducing your existing cards can also help as you will have less debt on it. Also consider professional financial advice.
If you are looking to get a contract on an existing phone then applying for a SIM only deal is a great way to also improve your trust with the mobile networks as the SIM only contracts are short term, usually on a 30 day rolling contract as bad credit SIM only deals are seen as less risky to the networks.
Benefits of a SIM only deal.
SIM only contract deals gives you more call minutes and texts as compared to a mobile contract phone deals as you are not paying for the mobile handset. You are also not tied to a long contract of 12 to 18 months. If you already have a handset that is unlocked to your preferred network you can choose by first checking which mobile network gives you the best network coverage, and then decide the best SIM only deal that suits you, with the type of phone usage you will be making.