Who are guaranteed phone contracts most suited for?
For a long time, the feeling among many people in the UK and beyond has been that guaranteed phone contracts are a preserve of individuals with a history of defaults or simply put, those whose credit rating is nothing to write home about. Unfortunately, this fallacy is premised on the fact that guaranteed phone contracts were initially designed for bad credit individuals. However, to categorically state that they are entirely meant for bad credit people is a misnomer, a fallacy of sorts.
Granted, bad credit individuals have greatly benefitted from guaranteed phone contracts no doubt. However, the benefits of this type of contract transcend bad credit individuals. The internet is laden with myths, misinformation and untruths propagated to further personal agendas. The reality of the matter is that apart from those with a poor credit rating, guaranteed contracts are also suited for certain class of individuals.
Those without a credit history
But having no credit history is a good thing, you might ask? Well, from your point of view, it is. However, in the eyes of financial lenders and mobile phone contract providers, having no credit history to your name is just as bad as having a poor credit rating. The argument fronted is that lenders and phone contract providers are not able to tell whether you are financially responsible or not. You see, your credit report gives a clear history of how you repay your loan and as such give your lender a clear picture as to whether you are financially risky or not.
Those seeking to build their credit report from scratch
If you don’t have a credit history to your name and can’t seem to avail one, it’s only logical that you go for a guaranteed phone contract. Considering that they don’t take into account your credit score or lack of it thereof, it is the perfect way to build your credit score from scratch. The secret to building a perfect score is in paying promptly without defaulting.
Those seeking to rebuild their tattered credit history
If you have a history of arrears and your credit rating is nothing to write home about, it is about time you considered using guaranteed phone contracts as a way of rebuilding it. Why is that so? Well, since credit checks are not an issue, getting approved is more or less guaranteed. The onus is therefore on you to ensure that moving forward you don’t default on payments and you can rest assured that your credit rating will gradually improve.
In a nutshell, if you have been holding a skewed opinion regarding guaranteed phone contracts, it is about time you changed your attitude!