Mobile phone contracts

maurice28

Hi, wondering if anyone has any thoughts on this one. I have had a pay monthly mobile phone for the last 14 years, with O2, and always paid on time etc.

This month, I decided to upgrade to a new Samsung, and looked at deals. I saw that Sky Mobile seemed better than O2, so cancelled my O2 contract and signed up for Sky. However, sod's law/inefficient checking, the day after I spotted that you could get the phone direct from Samsung as part of their upgrade programme. You essentially get a loan for the phone over 2 years, but can upgrade after 1. It's SIM free, so you can put any SIM card in it, and works out a better deal.

I decided to go for this, and arranged to cancel the Sky contract (I didn't have the phone at this point, they said just reject delivery, it'll go back to them, and they'll cancel the contract). I signed up for the phone from Samsung, then signed up to a Three SIM only contract.

Got the new phone, got the Three SIM, and realised the signal is pretty shocking at home on Three (I checked the coverage before ordering and it appeared it would be better). I'm within 14 days of getting the Three SIM, so can cancel it. If I did, I would take a new SIM only contract with BT Mobile.

Obviously, if you add that up, it would be four credit rating searches in the space of about a week (one for Sky, one for Samsung, one for Three, one for BT Mobile). And technically, for a week or so, I'd have 3/4 phone contracts on my record until the O2/Sky/Three ones cancel out!

I just wondered thoughts on what affect that would likely have on my credit rating, and for how long?

StopIt

It'll count as lots of credit searches in a short space of time.


Your credit score will crater for a while, usually up to 6 months. After that, the long term impact is 0. The actual active accounts on your file would then be the meaningful data. Lenders don't see acceptances, rejections or cancellations, only searches.


Also, make sure that the Three, O2 and Sky contacts are cancelled properly.


Mobile companies are not always the best at this and you don't want a default coming out of nowhere in a few months time because someone hasn't processed a cancellation properly. Send Sky and Three especially letters confirming usage of your rights of cool-off.

Springy17

Just another problem with how credit scores work!

Car1980

More practically, BT might now reject you and you'll have to get a PAYG sim

maurice28

Thanks all, really appreciate the advice!