How to Get Accepted by a Mobile Network for a Phone Contract

Today, if you want to get a contract mobile phone, the company selling it to you will first run a thorough check of your credit rating and history. While it may seem like too much to you as a customer (after all, it's just a mobile phone), for that company, this is a way to avoid a big risk of losing money.

What is a mobile phone contract? Basically, there's not that much difference between it and some other finance. In this case, the dealer buys the handset at a cost price and then give it to you, hoping that they will turn a profit on it.

For instance, if you want to get an iPhone 5, which goes for around 550 - 700, depending on the model, the phone network has to give a commission to the dealer selling the phone and bringing you to them. But first, they need to offer a certain tariff plan that will help them make a profit in the long run.

Let's take a further look at the iPhone. In most cases, you can get it for free (you've read it right). However, this includes a 2-year contract costing around 40-50 per month. In other words, the network can get: 24 x 50 = 1200 back from you in the course of two years. Basically, they are doubling their profit on this phone. And we haven't even covered the other chargers (such as going over your call allowance).

Although it may look to you like mobile networks are using your bad credit situation, mobile phone contracts are offered only to those customers who aren't a risk of not being able to pay it back. To make sure of this, the mobile network will run a check of your credit rating, just like with a loan.

Your credit score determines if you have a good or bad credit rating and whether you are a risk or not. Of course, some networks are more strict with their credit policies than others, so you should take your time to check a couple of them before you decide on one particular.

As you can see, even with a bad credit score, you still have a nice chance to get accepted for a mobile phone contract by the service provider. You just have to keep an eye out for the right deal.