Will a mobile 'phone contract boost my credit history?

edinburgher

Afternoon all.

I have a fairly poor credit history, with one registered default in 2006 and a lot of address changes since then (more than the average bear!) I'm currently paying off both an overdraft and a credit card bill which were passed to a debt collector in late 2005. While I make regular payments without fail (three years without a mistake), the accounts are still listed as in default.

Although I'm not free of debts and won't be for a couple of years, would taking out a low mobile 'phone contract help improve my credit score?

I'm on the electoral register at my current address, am hoping to stay there for two years or more and have a Cashplus credit card with the Credit Builder facility, which I have been paying towards for four months or more now. I haven't made any credit applications for roughly nine months (a foolish Vanquish application was my last) and I am managing my debts very well in my eyes.

Can anyone suggest whether or not my application might be successful? I last applied and was rejected for a contract eighteen months ago, but I didn't have the credit card or the electoral registration then....

PARIS_5000

Try three because i got a contact with them when i had defaults on my credit file . I also think you should try captial one or Aqua for their credit cards because the APR does not matter if you pay the bill in full and will help to build your credit rating as well.

debrag

I managed to get an O2 contract with defaults and not registered to vote.

edinburgher

Thanks for the replies guys - I'm not looking for any access to credit for the next year or so anyway, as I don't want or need it.

I will consider horrible rate credit cards again to build my history prior to applying for a mortgage, but that is still some years off! :beer:

sparkey1

Yes it can, provided it is a contract phone and you pay on time.

Set up a direct debit so you dont miss a payment. If your bank account doesn't allow direct debits then set up a standing order to cover the line rental costs so that if you forget to pay, at least they will get the line rental and your credit report wont report a late payment (cos you have paid, just not enough!)

Dont cancel before the end of the initial contract period, as charges will be levied.

If you do cancel, don't cancel the direct debit. My reason for saying this is that there is often a billing lag. So a call made on Jan 1st, may not be billed until February and may not be collected until March. You can always claim the money back if they do take a payment in error.

edinburgher

Thanks Sparkey - I worked for a mobile 'phone company for a year, so am aware of much of this

Just needed pointers on if it was beneficial for credit history!