How to get a contract with bad credit, please help..I am clueless!!!

valeche

Hi all,

wondered if any one could give me some much needed advice!!!

I went to 3 for an 18 month £15 contract and was turned down because of bad credit.
I was left confused because after some forum research people who were in a much worse off position seemed to be able to get a contract!!
I have about £2,500 of debt which I currently don't pay off as I can't afford to (the reason I can afford the contract is because I have to have a phone and I pay that much already on PAYG..on contract I'm just getting more for my money)
I did a credit score and got 498.
Is my credit bad because of the debt or because I have no outgoings? (I live with my parents, have no bills, credit cards etc so nothing goes out of my bank) or a combination of both? I realize my credit is bad, but not bad enough to be turned down for a phone contract!!!
I should state I'm visa electron as well (they told me if I took other forms of ID it would be fine)
I read on a forum if you use one of these 'splash cards' it doesn't matter if you have bad credit, you are guarenteed to get a contract? Does any one know if this is true?

I think I've included all the details in my tale here so if any one could give me some advice on what to do I would be really, really grateful.
Thanks!

Pokerlad

Youre defaulting every month on the credit you do have already. Are you surprised they see you as a bad credit risk after all what is to say you will pay them? I would guess its this more then what card you use or what score you have that is causing the problem.

Fire_Fox

If you live with your parents why do you 'have to have a phone, can't you use the landline or e-mail? It is not a case that you can afford a contract but cannot afford to pay your other debts, you are choosing to prioritise a phone over your credit rating but unfortunately the network think you are high risk as a result. You have just wasted money on a credit score as each organisation uses their own scoring system. You are not getting more for your money you are getting less for your money every day you allow late charges, interest and debt collection fees to accrue.

macman

If you owe £2,500, how can you say you have no bills and no outgoings?

Annie._2

You must be clueless if you dont realise that having an outstanding unpaid debt of £2500 with dafaults on your credit file will prevent you from getting any further credit.

A mobile phone is a luxury item and someting you cant afford, use the £15 which you spend on PAYG towards slowly clearing your debts and rebuilding your credit rating.

vixmony

Mate i think the best way for you t get a contract is if u try and apply for a sim only tarrif first then after 3 months or so yu can then upgrade to a full contract there was a thread on here about this information i think it was under contract for bad credit but i remember it had something t do with tmobile so u might wanna look at it but also bear in mind the more credit checks yu do within a very short period wil ultimatly work against u in which case i believe yu might want t wait am not sure for how long for till u can apply again.

PNPSUKNET

tmobile although expensive is your last hope

Annie._2

A SIM only monthly contract is still a credit agreement and will require another search of the OPs credit file.

It is still possible to run up a large bill in a month and the company needs to be sure they are going to get payment.

The more searches on the OPs credit file in a short period of time will not help the situation and could still get rejected for a SIM only plan.

macman

We don't actually know what form the existing debt takes-it could just be a personal loan from a friend or relative etc. The reason for credit being declined could be, lack of any credit history, not on electoral roll, still living with parents etc. The OP has not actually said that he/she has a default recorded on his/her report relating to this debt.