Does a mobile contract get classed as finance (loa

jase888
jase888 Posts: 43 Forumite
in Loans
Need a new phone as mines shot at and cant make calls. Just wondering if a phone contract is with someone like fonehouse or mobilesdirect is now classed as a finance option and appears on credit rating or anything?

I always use to have contracts when younger but don't remember them doing credit checks it was mroe walk in and go away with it and its just a Direct Debit.

Dont like getting things on finance as want to keep my credit rating clear, I know if you pay on time its fine but Im just forward thinking for mortgage renewals, etc.

Comments

  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
    First Anniversary Photogenic Name Dropper First Post
    They'll appear as credit agreements.

    If you're looking for a mortgage, make sure you have some active credit agreements.
  • BenC1985
    BenC1985 Posts: 4 Newbie
    Try looking at somewhere like Giffgaff. The mobile will be classed as a finance agreement so will show on your file, however you can pay it off in a shorter term.

    Most phone networks default this to 24 months but Giff Gaff you can pay it off in 6 months if that suits you better. Also you're not tied in to a network plan with them.
  • badmemory
    badmemory Posts: 7,718 Forumite
    First Anniversary Name Dropper First Post
    Do you actually need a contract? If you've had a phone long enough for it to be "shot" then quite probably not. Contracts seem to be dependent on people needing (desperately) to have the newest latest most fashionable one available. I had a very high (for me) PAYgo usage last month of over a £1, usually £10 lasts me 2 years, as I have deteriorating signal issues. Great 20 years ago - rubbish now.

    So I repeat do you need a contract or does the phone you "need" come cheaper if you have a contract?
  • Ben8282
    Ben8282 Posts: 4,821 Forumite
    Combo Breaker First Post Newshound!
    edited 22 March 2018 at 6:23AM
    Credit checks for contract phones have been carried out for as long as I can remember.
    Such contracts are usually reported on your credit files.
    Is there some reason why you don't want it to be?
    If you don't like finance then why are you so concerned about your credit files? Also if by 'keeping them clear' you mean keeping your credit files empty of credit agreements then you are doing yourself no favours in the long term if one day you do need something.
  • GMac14
    GMac14 Posts: 77 Forumite
    First Anniversary Name Dropper First Post
    Be aware Tesco mobile apparently dont report to the Credit Referencing Agencies, I saw a good bit of advice to go from PAYG to Sim only, which I did, only to find Tesco mobile dont send the info to the CRAs. I did however get a load more data and went from paying £7 per month to £7.50. Picked up an IPhone 5C for £50 and jobs a good un.
  • Nasqueron
    Nasqueron Posts: 8,768 Forumite
    Name Dropper First Post First Anniversary Combo Breaker
    badmemory wrote: »
    Do you actually need a contract? If you've had a phone long enough for it to be "shot" then quite probably not. Contracts seem to be dependent on people needing (desperately) to have the newest latest most fashionable one available. I had a very high (for me) PAYgo usage last month of over a £1, usually £10 lasts me 2 years, as I have deteriorating signal issues. Great 20 years ago - rubbish now.

    So I repeat do you need a contract or does the phone you "need" come cheaper if you have a contract?

    You can buy sim free and usually save money on buying the phone on contract then get a sim only contract for a lot cheaper
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