Getting rejected for a mobile phone contract can be frustrating and annoying. Esp. if you’re not told why. One reason could be due to you having a low credit score and history. 

When a mobile phone company checks your credit score and history they may find several reasons in your credit history that could be holding you back.

What's Holding you back?

• Missed payments

If your credit report shows missed payments, this can be seen as a sign of you not being able to manage your finances in a responsible manner

• Lack of credit history

If you’ve no credit history i.e a history of making regular payments this can also go against you.  

• Bad Credit History

County Court Judgements (CCJs) against your name, or Individual Voluntary Agreements (IVAs) on your credit record, indicate that you could be in financial trouble

• Lack of continuity

If you’ve moved around a lot or are not registered on the electoral roll then it will be hard to verify your identity and prove proof of address. 

• No Bank Account

This can be seen as a sign that you may not be able to make the monthly payments.

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How can you get a phone if you’ve been refused a mobile phone contract?

Of course, understanding why you've been rejected won't help you with your immediate problem of getting a mobile contract. So what are your options?

• Ask friends and family 

Consider asking a friend or family member with a good credit rating to take a contract out and pay them back. Alternatively you could ask them to lend you  a handset (assuming they have a free handset going!)

• Explore pay-as-you-go options. 

If you can afford it,  buy the handset outright and then just top up the credit on your phone as you need to via the different options available.

• Get a guarantor 

This involves asking someone to guarantee your contract by co-signing it. They need to be comfortable with this - as essentially they’ll be asked to make payments should you default.

• Get a SIM only tariff - you’ll still have to go through a credit check - but as these contracts are for shorter terms the payments will also be lower, which means you might have a better chance of being accepted 

While you consider these options, you’ll probably also want to work on improving your credit score. So you can improve your chances of being accepted for a contract next time.

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