Cancelling phone contracts and credit ratings

rachelg87

Hey Guys,

I was just wondering if someone could tell me if cancelling a mobile phone contract affects your credit rating?

I have an 18 month contract with carphone warehouse which I want to cancel, but also have insurance which lets me cancel my contract for free without having to pay the remaining contract fee. Although this would be covered by insurance, I was wondering if this will still affect me? Would be greatful if someone could let me know!

Rachel

OldGreyFox

The insurance pays off the remainder of the balance of your contract,so it should not have any affect on your credit rating.

mcmanlyn

I've done this a few times in the past & there's nothing negative on my credit report. It just shows up like you had the contract & ended it as you would with a normal one

DomTom

which insurance allows u to do that?

LeeSouthEast

Assuming what you say is correct, it'll probably help your credit rating ever so slightly (less credit available to you).

Littlemiss27

DomTom wrote: »

which insurance allows u to do that?

Carphone Warehouse's Lifeline Complete insurance (which they no longer sell) and any of their current Geek Squad insurance packages for monthly phones (as long as you opt in to have the Airtime Contract Protection bolt on).