Prior to the unveiling of bad credit mobile phones, individuals with a less than stellar credit rating in the UK were resigned to fate. They had become used to rejections every time they sought to be considered for a mobile phone contract. So dire was the situation that some people suffered low self-esteem while for some the idea of applying for a mobile phone contract became depressing. The discrimination based on a person’s credit score was depressing to an extent that those with a less than average credit score felt as if they were second class citizens.
When bad credit mobile phones finally became a reality, there was reason for those with bad credit or a less than stellar credit score to smile. The major selling point of bad credit mobile phones and the reasons it has continued to gain immense popularity has to do with the fact that a person’s credit score is not a cause of concern. Essentially, when you apply for bad credit mobile phones, providers do not perform credit checks or rather they do not use your credit score to approve or reject your application. The result is that one can apply and get approved without having to spend sleepless nights wondering whether they would be approved or not.
The second reason bad credit mobile phones are popular has to do with the fact that it provides those with a poor credit rating the perfect platform to improve their credit score over time. When you have a poor credit score, the only way to improve it is you do not default on loan repayments or mobile phone contracts. However, standard mobile phone contract providers rarely approve those with a poor credit rating hence denying them the opportunity to prove their mettle in so far as repaying is concerned. On the other hand, bad credit mobile phones are open to everyone and if a person pays their monthly obligations promptly without fail, it is only a matter of time before they start seeing positive results on their credit report.
Thirdly, bad credit mobile phones make it possible for individuals with no prior credit history to start building their credit report from scratch. What happens is that lenders and even mobile phone contract providers are skeptical when it comes to approving those with a less than average credit score because they don’t have a way of telling whether they are financially responsible or not. Bad credit mobile phones providers on the other hand do not have a problem approving those with no prior credit history hence according them the golden opportunity to start building their credit score from scratch.
With that said, getting a contract with bad credit is no longer a herculean task as it were before bad credit mobile phones became mainstream. The fact that bad credit mobile phones do not judge a person based on their credit score is the reason this type of contract continues to be popular not only in the UK but also in other parts of the world.
Granted, the unveiling of mobile phone contracts in the UK was well received and hailed as a step towards the right direction in so far as bridging the gap between the rich and poor is concerned. During the initial stages, there were concerns that UK mobile phone contract industry had a short lifespan or rather it wouldn’t stand the test of time. As it is now, it is now clear that those assumptions were simply based on unfounded fears and individuals who did not believe in the potential of mobile phone contracts. Within a few months of unveiling, thousands of UK citizens had joined the bandwagon and the popularity of mobile phone contracts in the UK continues to soar with every passing new day.
Amidst all the pomp and glamour, the wondrous benefits of mobile phone contracts and the fact that it has become rooted in the national fabric of the UK, the question on the lips of many people is what the future of the mobile phone industry will be. Are we going to see a change in tactic in so far as credit score is concerned? From inception, the idea was that only individuals with a good credit score could avail a contract phone. This rule of course saw thousands of UK citizens with a poor credit rating get locked out of a contract. There was, in hindsight, discrimination when it came to application and subsequent approval of mobile phone contracts.
This situation continued until the post-recession years when mobile phone providers had to change tact. It now came to their attention that having a bad credit score was unilaterally a function of financial irresponsibility. The economic downturn led to massive job losses, closure of businesses that hitherto had been considered immensely successful and the ripple effects of the same led mobile phone providers in the UK to go back to the drawing board. The result was the unveiling of bad credit mobile phones that essentially targeted those with no prior credit history as those whose credit history was less than average.
If there is anything that is clear, it has to do with the fact that over 90% of the UK households own a mobile phone and most prefer a mobile phone contract as compared to a Pay As You Go (PAYG) plan. The future of the mobile phone contracting industry can therefore be said to be bright. With new high end handsets being released every other day, mobile phone contracts remain the only plausible way of enjoying the services of the latest mobile phones without having to pay for the same upfront. The mushrooming of mobile phone contract providers jostling for a pie of the national cake in terms of the customers is also indicative of the fact that the UK mobile phone contract industry is just bound to scale the ladders and cover more ground.
Acceptance of those with a poor credit history not to mention the mushrooming of custom suit contracts for them is an indication that the future can never be so bright. I mean, when you compare pay as you go with mobile phone contracts, you will understand why the mobile phone contract industry is not going anywhere. People rely on mobile phone contracts to get free handsets, free minutes, free texts, data bundles as well as the flexibility of paying for the same over a prolonged period of time.