THOUSANDS of people get rejected from taking out mobile contracts every year.
This is because taking out a new phone contract is a form of borrowing.
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Mobile networks run hard credit checks to make sure customers can afford to meet their monthly bill payments.
This is bad news for those who have a poor credit history or low credit score.
This could be from having little previous history of borrowing, or marks on your record from missed payments, for example.
Those with a poor credit history needn’t miss out though, as there are a number of mobile networks that don’t run credit checks.
Rehan Ali, Uswitch mobile expert said: “Taking out a mobile phone contract is a form of credit and therefore providers will often require you to pass a credit check before they give you a contract.
“However, with the cost of living crisis putting added pressure on credit ratings, securing a mobile phone deal with a poor credit history could be a common problem for many.”
“If you do have a poor credit history and are in the market for a new mobile phone deal, there are a number of ways you can still acquire a good deal.”
One way is to make sure you’re network savvy.
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There are four major mobile networks in the UK – EE, O2, Three and Vodafone – all of which run hard credit checks when you apply for a new contract.
If your credit file is already poor, applying for a contract with these firms could put a further mark on your file, potentially reducing your credit score further if your application is rejected.
But a number of smaller networks which “piggyback” off the bigger player’s signal don’t run any checks.
Here’s a full list of these networks that don’t require you to pass a credit check to be accepted for their 30-day sim-only deals.
These deals come with calls, messaging and data allowances for a monthly fee, but not the handset.
As you won’t be paying off the cost of the phone itself, they can also work out cheaper if you already have a device.
Remember to check different deals to find the best price. You can use comparison sites and directly with providers as they may not always be listed on them.
Plus you can use the signal checker tool on Ofcom’s website to see if you get the coverage you need from the network where you are.
GiffGaff
GiffGaff runs off O2’s network and customers wishing to take out a new sim-only deal won’t face a credit check.
All deals come as a 30-day rolling contract and customers are able to cancel this at any time without an extra fee.
Right now, customers can get unlimited UK calls and texts, free EU roaming and 5GB of data for just £8 a month.
Lebara
Lebara runs off the Vodafone mobile network but customers don’t face any credit checks when applying for a sim-only contract.
Contracts last on a 30-day rolling basis and customers can cancel with 30 days’ notice without facing exit fees.
Right now, customers can get unlimited UK calls and texts and 15GB of data for just £10 a month.
Lyca Mobile
Like other smaller networks, Lyca Mobile’s sim-only deals work on a rolling prepaid basis.
This means that customers don’t need to pass any credit check when signing up.
Right now, new customers can pay just £1 a month on a rolling basis for three months, rising to £5 thereafter and get 6GB of data and free roaming in the EU.
Lyca Mobile runs off O2’s network coverage.
Smarty
Smarty runs off Three’s mobile network but customers don’t face any credit checks when taking out a new sim-only deal.
Right now, customers can get unlimited UK calls and texts and 24GB of data for just £8 a month.
And subject to Smarty’s fair usage limit, you can use up to 12GB of data each month out of your monthly allowance when travelling in the EU.
iD Mobile
iD Mobile runs off Vodafone’s network but customers don’t face credit check when signing up to a new sim-only deal.
Right now, customers can get unlimited UK calls and texts and 250GB of data for just £14 a month.
All iD Mobile plans also come with inclusive EU roaming.
What are the pitfalls of poor credit sim-only tariffs?
Unlike the plans offered by the four major mobile networks, customers have less choice when it comes to sim-only deals.
Those with these tariffs also miss out on exclusive additional subscriptions and promotions offered by larger network sim-only deals offered
For example, O2 offers up to six months of free Apple Music on some of its tariffs.
And Vodafone offers some customers a 24-month subscription to Spotify Premium included in their sim-only deal.
Paying for poor credit sims also won’t help you improve your credit rating because these providers don’t report payments to credit reference agencies.
Find out how you can boost your credit score with nine simple steps.
