Getting a phone contract for 1st time without credit history

tutifruiti1000

Hi

I am looking to get a mobile phone contract for the first time but when I went into phones4U to sign up I was refused as they said I needed at least two debit or credit cards (this was through o2)

I am 23 years old, have been in full-time employment for 5 years, have a decent job with a decent wage, but still live at home, only had PAYG phones, never had any credit cards, never used my overdraft, no student debt/debt of any kind - so basically I don't have a credit rating.

I only have my one debit card. I am wondering if the only thing to do is to open a credit card (and not use it) so that I can get a mobile phone contract?

If anyone has any advice or has been in the same position I would really appreciate your help!

Thanks

:money:

kadiea

hi tutifruiti1000.

phones4u are incorrect (as usual).

1. you wont get a good offer in there (they are a reseller)

2. A debit card (except visa electron) will suffice proof of id for most mobile phones.

3. You should have SOME credit history. Why? because. Your bank (if major) should report your account to the major credit reference agencies, you also should be on the electoral roll AND if from what it seems you DO have the facility of an overdraft? that should also be on your credit records.

So. You want a Mobile Contract? The easiest places to obtain a mobile phone contract in the uk are...

3 - Debit card is ok, however they will require photographic id such as a drivers license or passport if you want a higher spec mobile phone, they may also ask for a deposit (usually £100-250 depending on handset) which is refunded usually via cheque after 6-12 months. HOWEVER they will only do this in extreme cases (bad history).

T-mobile. - They are happy with a debit card.

Orange. - Run a URU check on their computer and if required will ask for futher id such as a bank statement and photo ID

tutifruiti1000 please note. If you are going to take out a contracvt with a cheaper mobile it is not worth it. in fact the cheapest thing to do is buy the phone yourself and then get a sim only contract.

I would also suggest asking your bank if you are elligeble for a credit card, if approved use it once a month and pay your balance in full. this way you will improve your credit history and be easier on you in the future if/when you apply for a mortgage or car finance. not only will it improve your chances of getting the finance package but also it will help give you a better chance of paying less for the finance.

If your bank are not willing to give you a credit card or do not have the feature. Apply for a capital one classic visa card and after using this for a year switch to a card with a lower rate of apr. (a prime market card)

Never miss payments. Pay your balance in full whenever possible and check your credit records yearly. Equifax, experian and Call Credit

All the best. Kadiea