mobile phone contract credit checks

ferry

Just curious but are credit checks for contract phones as in depth as say applying for a loan or other finance?
Or does it vary from network to network?

Thanks

Frozen_up_north

It's no different to any other finance, the network is selling you a phone over typically 2 years on finance. In addition you are using their network in a similar manner to making purchases on a credit card...

If money is tight, or your job is at risk, (or even if it isn't) the better value option is either PAYG or a 30 day SIM only contract. For the former, Three's 321 SIM is hard to beat, for the latter Virgin have some cracking offers if you want mainly loads of minutes.

jenniewb

In my past experience I used to always be able to get a contract with 3 mobile even when my credit rating went south due to high debt and missed payments after I lost my job then had a break down. I was not however able to get a contract at the time with EE or Orange or O2. This was about 8 years ago though. I've not checked mobile contracts since but know I get turned down if I try to get any credit for anything else.


I would however advise against checking repeatedly if you have been turned down once already in the past 6 months. Apparently it looks "desperate" (says credit reference agencies" and this can show on your file and put off others searching afterwards. It's a pain that this happens but if you get turned down once, try to wait a few (6) months before trying elsewhere.


I was advised once that if you are trying to get a contract with a new phone, it can be a way to work yourself up by getting a sim only contract, paying on time and after a year or so of doing this, then try for a contract. It isn't a fail-safe way to get a handset and contract, but it is what was suggested and advised to try by a phone company.

mobilejunkie

The outcome of a credit check isn't shown. It's not applying for more which counts with most lenders; it's the number of searches in 12 months and the overall amount of credit available (both are shown), plus any missed or late payments. Also, different providers have their own criteria, so you can't second guess. I've made lots of applications in short periods many times and not been declined, but was once declined for a credit card for people with poor credit and immediately aterwards accepted for a normal credit card and given a credit limit of £5,000 with an interest-free balance transfer for 18 months. Shortly afterwards the first card company sent me a pre-approved application form, which they have done regularly ever since. I put it down to the fact the origianl application was via a cashback site.

Recently I checked my free Barclaycard credit score. It was significantly different to my monthly checks on creditscore. It also recently went up a lot for absolutely no reason from one month to the next. If anything, that should have happened several months previously - but not by as much.

I also sell finance. I recently put a customer through for several thousand pounds where they and I fully expected a decline. They were accepted.