Why are more people turning to bad credit mobile phones?

As a provider of bad credit mobile phone contracts, we often get asked by the media why more and more people are turning to this form of contract to secure a mobile phone.

Well, there are a number of reasons in fact. Of course, the most obvious is that because they suffer from bad credit ratings or have even been declared bankrupt, they have no other way of securing a phone contract other than a bad credit offering.

This of course, is the main reason, but there are others. In fact, we see many young people approaching us for phone contracts, especially those who have just entered the job market. Why would they do this, especially if they do not have a bad credit rating as of yet?

Well therein lies their problem! They donít have ANY form of credit rating, be it a good or bad one. This means that should they apply for any kind of loan product or even a credit card, they are often turned down straight away because the lender has no credit history to base their lending behaviour on.

In this regard, a bad credit mobile phone contract can help them. By entering into one of these contracts and paying it off over the course of say twenty-four months, they begin to build up a positive credit history which will work in their favour when they apply for other credit products from high-street banks or lenders.

Many other reasons...

Of course, those are just two of the many other reasons why people apply for these contracts. Letís take a look at a few others.