How to get a phone with bad credit
How to improve your chances and find the right option
Have a less-than-perfect credit record? It's still possible to get a good deal on a mobile phone contract, but whether you get accepted depends on the network, handset cost and your credit history. This short guide takes you through all you need to know.
First, a quick overview of How to get a phone with bad credit
Here’s all you need to know about how to get a phone contract with bad credit, including which options are easiest to get and how to improve your chances of being accepted.
You should still be able to get a contract. Bad credit can limit your options, but it doesn't automatically mean you will be rejected by all providers.
Sim-only and pay-as-you-go deals are usually easiest to get. This is because they don't involve borrowing as much from the network.
There is no universal minimum credit score. Networks look at your overall financial situation, not just the number shown on your credit report.
Paying more upfront can improve your chances. If the network is lending you less for the handset, it may see you as less of a risk.
Buying the handset separately can be a smart workaround. Pairing it with a cheap Sim-only or pay-as-you-go deal is often the simplest option if you cannot get a traditional contract.
In the right place?
– Looking for a cheap Sim? Check out our best Sim-only deals
– After a new handset? Use our Cheap Mobile Finder
– Want a pay-as-you-go Sim? See Best pay-as-you-go Sim deals
Can you get a phone contract with bad credit?
Yes. Bad credit history doesn't necessarily mean you'll be unable to get a new mobile plan or handset, though your options may be more limited.
When you take out a new contract with a phone included, you're effectively borrowing the cost of the handset from the network and repaying it over the length of the contract – typically over a two-year period. As with any mobile contract, including Sim-only deals, providers will usually carry out a credit check, so having a poor credit history can make it harder to be approved.
In the longer term, improving your creditworthiness should be your aim, as it means you're more likely to qualify for the best offers. But in the short term, this guide explains what you're most likely to be accepted for, how to improve your chances, and what to do if you are rejected.
What types of phone contracts can I get with bad credit?
If you’re looking at poor credit mobile phone contracts, the easiest options are usually one-month Sim-only or pay-as-you-go (PAYG) deals rather than expensive handset contracts.
If you do need a new phone, you're more likely to be accepted if you're able to pay more upfront for it. This way, the phone company's not lending you as much, so it sees it as less of a risk.
Keep on top of your mobile bill
Want to know how to slash your mobile costs – and when to do it? The MSE App has a new tool called Bill Buster – give us a few details about your mobile bill and we'll track it, alert you when your contract's ending, then show you the cheapest deals based on how much data you need.
What do I need to provide to the network for a credit check?
When you apply for a traditional phone contract, the network will usually ask for personal details such as your name, address and date of birth. It uses these to match you to your credit report and confirm your identity.
Mobile networks aren't so focused on the exact number you see in credit reports from agencies such as Equifax, Experian or TransUnion – you don't have a universal score that dictates your creditworthiness.
See our Credit score guide for more information.
Income and affordability matter too
Along with your credit report, networks will take into account your income and assess whether you can afford what they're offering.
You'll be asked for your financial details, including how much you earn, your occupation, and often info about how much you spend on things like your mortgage or rent.
What do networks look at and why might you be rejected?
Networks can reject a phone contract for several reasons – and it’s not only about the credit score you see from credit reference agencies (CRAs).
You may be rejected if you have:
Missed or late payments on your credit reports. If you have a record of not paying previous debts on time, the mobile phone company may be reluctant to agree a contract with you.
County Court Judgements (CCJs) or defaults. CCJs, decrees, IVAs, bankruptcies and defaults show a history of debt problems.
Recent credit applications rejected. Credit applications leave a mark on your credit report. If you're rejected, check your credit report before applying again and potentially making the situation worse. See 28 tips to boost your credit rating.
High existing credit usage. High credit utilisation suggests reliance on debt, which can make networks less likely to accept you.
Which credit reference agencies do mobile phone companies use?
Networks don't all use the same CRAs to carry out checks. Big networks such as EE and Vodafone may use all three main agencies, while some smaller providers may rely on just one. That means the outcome could differ depending on which network you apply to, as each agency may hold slightly different information about you.
Are there any phone networks that don't do credit checks?
Yes. If you’re looking for a phone contract with no credit check, some providers offer Sim-only deals or pay-as-you-go plans that are easier to access if you have bad credit.
Here are some examples:
-
Giffgaff. You just need to sign up to a 30-day rolling deal and you're free to switch plans at the end of every month. See Giffgaff Sim-only deals.
-
Smarty. Like Giffgaff, Smarty offers rolling 30-day deals, which can be a good option if you want flexibility without signing up for a long contract. Check out Smarty Sim-only deals.
-
Lebara Mobile. Lebara offers Sim-only plans without a full credit check, though its setup is slightly different as some deals are fixed-term promotional plans rather than rolling monthly options. Always check the exact terms before signing up. See Lebara Sim-only deals.
-
Voxi. Voxi’s plans are 30-day rolling, so you’re not tied into a long contract and can switch or leave easily. Visit our Voxi Sim-only deals page.
Other networks, such as TalkMobile, carry out what's called a 'soft search' on your credit file. Unlike a formal credit application, this is a preliminary check of your credit history that won't show up to other lenders and usually won't affect future applications.
Be wary of specialist bad credit phone providers
If you want a handset, some specialist providers (such as Sunshine Mobile and Accepted Mobile) offer 'guaranteed' contract phones with no credit checks. These may sound like an easy fix if you have poor credit and don’t want to buy a phone outright, but:
-
These deals are often much more expensive than standard airtime-plus-handset plans from regular networks. They can cost about £15–£35 a week, which adds up to £1,500–£3,600+ over two years. By comparison, buying a £300–£600 handset outright and pairing it with a cheap Sim-only deal could cost £540–£840 over the same period.
-
In many cases, the provider loans you the handset and you pay weekly for airtime. This means you don’t actually own the phone and may have to return it if you fall behind on payments.
If you’ve poor credit and need a new handset, the cheapest option is usually to buy one upfront and get a SIM-only or pay-as-you-go (PAYG) plan as above.
What if I can't get a phone contract?
If you find it challenging to secure a phone contract due to bad credit and do not want to take out a Sim only or pay-as-you-go (PAYG) deal, you could consider asking a family member or friend with good credit to take out a contract on your behalf. This may improve your chances of approval.
That said, explain clearly how you will make the payments, and ensure you stick to this, as the account holder is legally responsible if you do not pay.
The main drawback to this approach is that it will not help you build a positive credit history, as the payments will appear on your family member's credit report, not yours. Whatever you do, focus on improving your credit history by managing your finances responsibly, as this will give you more choices in future.
How to improve your chances of getting approved
If you're worried that your phone contract will be rejected or you want to avoid it happening again, try these tips...
-
Check your credit reports first. Reports from Equifax, Experian and TransUnion can contain errors – and mistakes can kill applications. Go through them line by line to make sure everything’s right.
-
Avoid lots of applications close together. Every application – whether for a credit card, mobile phone contract or monthly car insurance – leaves a mark for a year. Too many in a short time can make lenders think you’re overly reliant on credit, which hurts your chances. Space applications out and only apply if you’re serious.
-
Pick a cheaper handset. It lowers how much you borrow from the provider, which makes approval more likely.
-
Pay more upfront. If you can afford it, paying more towards the handset cost reduces borrowing and boosts acceptance chances.
For more general tips on how to improve your creditworthiness, see our guide on how to boost your credit score.
Phones for bad credit FAQs
How do I get a phone contract with no credit history?
If you have no credit history, getting a phone contract can be similar to applying with bad credit, as networks have less information to assess you on. Usually, the easiest way to get a phone contract with no credit history is to start with a low-cost Sim-only deal and buy the handset separately.
Some providers accept applicants with limited history after a soft check or if you provide a guarantor/pay a deposit.
Will a Sim-only contract improve my credit score?
Only if the provider reports your payments to the credit reference agencies and you pay on time. Sim-only plans are less likely to affect major lending decisions than other forms of credit, but making consistent payments can still help you build a positive credit history.
Is there a minimum credit score for a phone contract?
No. There is no universal minimum credit score for phone contracts. Each network assesses applicants on a case-by-case basis, and while a better credit report may help, they'll consider your overall credit history.
Can I get a phone contract if I have been rejected before?
Yes, but it depends on when you were last rejected. Failed credit applications leave a mark on your credit report so it's usually best to improve your credit record before trying again. See 28 tips to boost your credit rating.
Do all phone companies do credit checks?
No. Most networks do a credit check for handset contracts, and many also check for pay-monthly Sim-only deals. But some providers offer Sim-only plans without a full credit check, while others may only carry out a soft search to assess your application.
Share this guide?
