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If you have been rejected numerous times for a mobile phone contract, you might find it difficult believing whether guaranteed mobile phone contracts really do exist. Let’s face it. We live in a world where credit checks have become a way of life. It’s almost impossible to be approved for a mobile phone contract especially if you have been deemed not to be credit worthy. This was the position until the global financial crisis that led to a paradigm shift in the way lenders and mobile phone contract providers handled things.


Everyone was affected by the global credit crunch and therefore it would have been foolhardy to imagine lenders continuing their hard stance policy. In an attempt to bring people with bad credit on board, many mobile phone contract providers came up with bad credit mobile phone contracts as well as guaranteed mobile phone contracts aimed at people with a poor credit rating.

• What is a guaranteed mobile phone contract?

As the name implies, a guaranteed mobile phone contract is the kind where you are assured of being approved when you make an application irrespective of whether you have bad credit or not. These kinds of contracts were ostensibly designed to bring on board people with bad credit who had been locked out due to the status of their credit rating. Individuals who initially had been rejected as a result of their credit score have now a 100% chance of being approved when they apply for a mobile phone contract.


• What can make a person to be rejected even if they apply for a guaranteed mobile phone contract?

It’s no secret that the credit score is the single largest factor that determines whether a person gets approved for a mobile phone contract or not. However, in its absence, there are a number of things that could make a person’s application to be temporarily rejected. Provision of false information during application or some errors could indeed make ones application to be rejected. However, these are things that a person can easily rectify and be approved within no time.

• What are some of the drawbacks with guaranteed mobile phone contracts?

Indeed, guaranteed mobile phone contracts has been a blessing of sorts to people who initially could not be approved for a mobile phone contract due to their poor credit rating. However, there are also a number of drawbacks associated with this kind of contracts. The perks that people on these plans get are not the same as those with a healthy credit score. Secondly, there is always the requirement that customers make an upfront payment before they can be approved. Thirdly, the commitment period to these kinds of contracts are slightly longer than ordinary mobile phone contracts. For instance, the least period one can be committed is 18 months as opposed to the 12 month standard period synonymous with ordinary contracts.


All in all, we can’t be oblivious to the fact that guaranteed mobile phone contracts have indeed changed the lives of those people who initially could not be approved for any kind of contract. They will continue to be a source of great relief to all people with a poor credit rating.