Mobile phone contracts are the new strategy by telecoms companies to sell more without inconveniencing clients. The contracts are carefully drawn to ensure that clients can pay a small amount on a monthly basis for the top smartphones. Well, you can now walk down the streets with the latest iPhone 7-Plus at a monthly charge of about 100 pounds only.
However, if your credit score is very poor, these privileges become elusive. Every mobile company will turn you down because the risk involved is not worth taking. The UK market has, however, become dynamic and diverse to ensure that no one goes without a smartphone of choice. For those with poor credit score, it is still possible to get no credit check mobile phones. As you set out looking for the phone of choice, it is important to know more about credit score and ways of raising it. Here are five most important things to know about credit score.
- Credit score is likely to have errors unless you correct it
While mobile phone companies take the report they get from credit reference agencies faithfully; the numbers are not always correct. Credit reference agencies are third parties that do not have direct information about your financials. Therefore, they must rely on other institutions to gather data about your financial performance to calculate the score. However, banks, mortgage firms, insurance companies, and other institutions are mainly for-profit organizations with a focus on optimizing returns. It is, therefore, not uncommon to get delayed, omissions, and even missing data to the credit reference agencies. It is because of these considerations that you should check the report and correct every error.
- Individual payment history
One of the main factors that contribute immensely to a high or low credit score is individual repayment history. The credit reference agencies carefully check on all account types including credit cards, instalment loans, and retail accounts to establish how effective you are in repaying credit. Besides, they will also check on foreclosures, bankruptcies, and liens. Once you get a no credit check mobile phone, it is important to maintain a positive credit repayment history.
- What you owe and credit utilization
Credit reference agencies use the amount you owe and credit use to determine individual creditworthiness. The higher the amount you owe about the credit limit, the lower is the credit rating. The agencies will particularly pull down the score for people who appear to be maxing on their lines of credit.
- Your credit history length and new credit lines
While credit agencies do not factor age, those with longer credit history get a better score. This has been a great disadvantage to younger people with a very short history. However, it is still possible to get a higher score by demonstrating reliable credit management. For example, consider taking short loans and repaying them on time to create an impressive history.
- Your new credit lines
As you apply for no credit check mobile phones, it is important to know that new lines of credit are likely to pull down your score. The reference agencies will check on the number of new credit lines, enquiries made, and length of time they have been in use. It is this consideration that people with poor credit score are discouraged from closing their credit card lines but recommend improving and using them diligently.