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MSE News: Beware split tariff mobile contracts if you're about to apply for credit

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in Mobiles
If you're planning to buy a latest model phone from O2, be aware that you'll actually be taking out a loan
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Beware split tariff mobile contracts if you're about to apply for credit'

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Beware split tariff mobile contracts if you're about to apply for credit'

Click reply below to discuss. If you haven’t already, join the forum to reply. If you aren’t sure how it all works, read our New to Forum? Intro Guide.
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The new split was is a good idea. The simple answer is if you can't afford a handset on Refresh don't buy one.
It is high time the other mobile providers followed suit on this split. In fact it should be legislated. The rip of that is paying for air time you don't use if you need or want to cancel early is nothing more than daylight robbery.
In fact the monthly commitment on a non split tariff is greater than on refresh. At least on refresh the airtime can be cancelled leaving only the handset commitment.
So logically mortgage lenders should view a split mobile tariff in a favourable way over a normal one.
Interestingly thought carriers speak of subsidising handsets yet on O2 refresh and iPhone 6 128GB costs £789 either up front or via installments on their O% loan scheme yet outright from Apple the same model is £699.
A bit like catalogue books were then. You always paid more for things on those so you could pay weekly!
Anon
a 400/500 pound 0% loan is hardly going to be seen negatively - and if it does block further credit applications, then there must surely be something else (more significant) behind such a decision?
In fact, seeing a small 'loan' paid off may well be a positive thing for people looking to build up their credit rating.
If it costs more to buy the phone in this way, which it invariably does, then while it may be 0% interest it is not 0% APR (in the true sense, at least).