Having a cell phone is a basic part of our daily lives, whether for business or pleasure. This way, we can stay connected and allow us to communicate, so it is important to know how to get a phone contract with bad credit and thus be able to buy a new cell phone.
Plans that are available for cell phones
When we intend to buy a new cell phone, we must choose between two different types of cell phone plans. We will be able to opt for a prepaid cell phone or subscribe to a monthly plan, and we will have to know the differences between the following:
Prepaid cell phone plan
Prepaid plans require us to purchase minutes to use it, and this cell phone equipment is ideal if we want to avoid a long-term contract with a provider. Prepaid plans offer the same essential features as our cell phones, and we can spend as much money as we want.
To do this, we will need to purchase a cell phone and a prepaid card separately, and we can receive discounts if we are buying from a retailer. Prepaid cards come in various price ranges, unlimited calling, texting, and data. In these cases, we may be able to spend as little as $10 on a card, but the range will depend on our phone type.
With a bad credit score, this may be the best option available. In these cases, it will not be necessary to undergo a credit check, and the cost may be cheaper, but they may offer fewer features.
Monthly subscription plan
Monthly cell phone subscription plans will require an account with a phone company. To do this, we will need to provide an unlocked cell phone or purchase a new one through the phone company.
Multiple phone plans offer various monthly plans depending on our budget, and the cheapest monthly plans can be around $40, with all services. However, there are also low-cost data-based plans, so that we may have different options. The disadvantage of these plans is that each time we reach our limit, we will have to wait until the next billing cycle. For these types of plans, if they will do a credit study.
Is it possible to get discounts on cell phones?
In most telephone operators we will be able to find several customer discounts. We can find discounts on phone plans for students, veterans, first responders, or seniors.
When choosing a carrier, we can get multiple discounts if we fit into these categories. We can always take advantage of available discounts to save and keep more money in our pocket.
How does a credit score play a role in getting a cell phone?
When getting a new cell phone, most carriers will require a credit check when we apply. In most cases, credit scores are used to pay for the high cost of cell phones. Retailers will use credit checks to determine if a person can make monthly payments reliably.
In most cases, a FICO score below 600 will be considered a bad score. However, this limit varies depending on the phone company, and to have a good credit score, it will have to be above 670. If we have a bad credit score, it will be more difficult to get a phone contract so we can get great versatility.
How to get approved for a cell phone with bad credit?
Even if we have bad credit, we can get a cell phone, although we may have to provide a deposit upfront. The cost of these deposits can vary depending on the phone company, which can be as much as $750, although this varies depending on our current credit.
However, if we do not have a large number of dollars to spend right away, we will have different options to consider:
Enroll in a family plan
Family plans consist of multiple phone lines and a primary account holder. In these cases, the primary account holder can have different phone lines associated with the account but will also be responsible for paying for those additional lines. The number of phone lines will depend on the phone company.
If we have a bad credit history, joining a family plan can be very beneficial. Good credit history will not be necessary to get approved for these plans. In addition, this will help us get rewards that we would not have if we sign up for a new account, and the more lines we have, the less we pay for each line.
Applying with a consignee
A consignee with good credit can be used so that a person with bad credit can get a cell phone. A consignee can be a family member or friend who will be added to the account.
Depending on the contract, the consignee will be responsible for payments if financial problems are experienced. It is always key that the consignee fully understands the financial obligations that will be expected of them.
In some cases, it will be required that the telephone account is in the consignee’s name and will eventually allow the account to be moved to our name. However, some companies immediately will enable us to be the primary account holder.
Using a personal loan
One option for us to get a cell phone with bad credit may be a monthly plan with a security deposit. It could be a good option, but we won’t always have that much money to spend all at once.
Luckily, financing options are available if we want a cell phone with bad credit. For this, we may be able to apply for a personal loan to have what we need for a cell phone deposit. However, we must ensure that the deposit will be refunded before we agree to all the upfront payment policies.