How to get a cell phone contract with bad credit

As a former employee of a cell phone company, I discovered that many consumers are hesitant to purchase a cell phone due to poor credit history. They often believe that prepaid is their only option, but prefer a contract provider. Many people don’t realize that even with subprime credit, they may still be eligible for a mobile phone contract. The 80% of customers with the misconception that they can’t get a contract are often surprised when they get approved for a cell phone plan. If you have bad credit and prefer better quality cell phones over prepaid, here are some steps you can take to get a contract phone.

down payment payment

Many customers with bad credit may be required to put down a down payment on their contract. The price can range from $50 to $400 depending on the operator. They return the money with interest after waiting two years. Go through the application process to find out what you qualify for. If your down payment requirement is on the low end, go for it, but if it’s on the high end, continue.

Apply with multiple carriers

If your preferred cell phone provider is charging you a very high down payment, then apply to another company. Some carriers pick up customers that their competitors may reject. It’s amazing how one company might classify you as high risk, but another might consider you a top customer.

Go with credit customer companies

Not all cell phone companies use the same process for credit checks. Each company has different standards and requirements than their competitors. It has been my experience that Sprint and T-mobile often offer great deals for customers with bad credit.

Sprint’s credit requirements are the lowest of any major US carrier. Many customers who were turned down by other carriers almost always get a contract with Sprint. They usually ask for a $50 down payment, but can be up to $150. Sprint has some of the lowest-priced service plans in the country that help keep monthly bills to a minimum.

T-mobile is also a good option for customers with low credit scores. In addition to having low credit requirements, T-Mobile goes one step further by eliminating the down payment and offering customer account options for high-risk customers. The first of two options is called the even more plan. In this plan, the customer still has the possibility to buy phones at a discount price, but must pay the first month’s bill in advance. Activation fees are charged automatically, saving you a large sum of money if you purchased more than one phone. The second option is the even more plan. This option is a plan without a contract. You have to pay full price for the phones, but the monthly rates are cheaper than the plan even more. After one year of on-time payments on the even more plus plan, T-mobile will review your account to determine if you’re eligible to upgrade to a contract plan.