Accepted for a Phone Contract - Bad Credit File

LisaMJC

Hi all,

After a difficult 2 years, I got into a lot of debt and therefore racked up some defaults on my accounts and a lot of missed payments.

Things still aren't perfect now, but my number of debts is going down and due to a fairly low income I have to leave some creditors out for one month to pay others and then bring the other up-to-date the following month.

I needed a contract preferably with a new phone as my current one is dying but being realisitic I know that I won't get and rightly do not deserve the extension of credit for this. EE duly refused me and accepted that I have to get used to this for the next 6 years.

Anyhow, I still needed a good-value phone service and so applied for a SIM-only 30 day rolling contract with Vodafone and completely to my surprise (not even expecting to be accepted for that either) I was approved instantly. I am grateful that they gave me a chance to build a good payment record and hopefully down the line I could be offered a handset upgrade based on this.

I know that until all my debts are settled and/or paying every single one on-time to prevent any more late / missed markets being added, my credit file can't start repairing properly, but I am hoping that this utility account can be the start of more responsible use of credit going forward.

Is it surprising for me to be accepted for a phone contract with my credit file in this state and they have taken a chance on me or is it only because they have bare minimum requirements like having a pulse when it comes to SIM-only services? I just wanted to know this out of curiosity as despite everything it would be good to know that there is some trust invested in me going forward.

No lectures please, as I am aware of my situation and took steps from January onward to settle my debts and have learned a valuable lesson.

Thank you

boo_star

LisaMJC wrote: »

Hi all,

After a difficult 2 years, I got into a lot of debt and therefore racked up some defaults on my accounts and a lot of missed payments.

Things still aren't perfect now, but my number of debts is going down and due to a fairly low income I have to leave some creditors out for one month to pay others and then bring the other up-to-date the following month.

I needed a contract preferably with a new phone as my current one is dying but being realisitic I know that I won't get and rightly do not deserve the extension of credit for this. EE duly refused me and accepted that I have to get used to this for the next 6 years.

Anyhow, I still needed a good-value phone service and so applied for a SIM-only 30 day rolling contract with Vodafone and completely to my surprise (not even expecting to be accepted for that either) I was approved instantly. I am grateful that they gave me a chance to build a good payment record and hopefully down the line I could be offered a handset upgrade based on this.

I know that until all my debts are settled and/or paying every single one on-time to prevent any more late / missed markets being added, my credit file can't start repairing properly, but I am hoping that this utility account can be the start of more responsible use of credit going forward.

Is it surprising for me to be accepted for a phone contract with my credit file in this state and they have taken a chance on me or is it only because they have bare minimum requirements like having a pulse when it comes to SIM-only services? I just wanted to know this out of curiosity as despite everything it would be good to know that there is some trust invested in me going forward.

No lectures please, as I am aware of my situation and took steps from January onward to settle my debts and have learned a valuable lesson.

Thank you

It's not surprising at all. The network's risk is near zero on a SIM only 30 day contract.

T-G-C

You are using airtime, which in reality is costing them peanuts to facilitate. If you defaulted your account, there would be no tangible loss for them, as that mast is still serving one hundred other subscribers. With a phone however, you could sell it; pawn it or damage it - hence this avenue was blocked off.

I am sure that if you maintain your payments for 3-6 months, the network will have more incentive to offer you a phone upgrade. If I am correct, Vodafone does not credit check existing customers, so any future request for an upgrade would depend on how your account was maintained thus far. Be good to them and they will be good to you.

To answer your question: for this type of contract, Vodafone's priority would have been to verify your identity using your credit file. Your creditworthiness would have had bare minimal influence on the approval. However, had you attempted to sign a lengthier contract or with a phone included, this would have had a different outcome. This is an opportunity to prove to them that you can be trusted to pay on-time.