Are guaranteed mobile phone contracts designed for people with bad credit only?

The pain of being rejected for a mobile phone contract is at times unbearable. It simply gets the better of us and we are times left to wonder if having a so not perfect credit score is enough to face discriminations of sorts. For a long time, credit checks were the standard modus operandi. It was the first thing that lenders and mobile phone contract providers did before they could even take a glance at your application. The resulting effect was a long list of men and women who stood rejected and locked out of the benefits of mobile phone contracts based on the status of their credit score.

The playing field has however been leveled with the emergence and subsequent popularity of bad credit mobile phone contracts as well as guaranteed mobile phone contracts. Unfortunately, with this new development, there has been some sort of misconception. A lot of people fallaciously believe that guaranteed mobile phone contracts are designed for people with bad credit. They look at guaranteed contracts as those that have been designed to give people with bad credit a new lease of life. While this might be true to some extent, the assertion that these contracts are exclusively designed for people with a history of CCJs only or defaults is fallacious to say the least.

Itís an open secret that even people with a fairly good credit score also face rejections when applying for a mobile phone contract. It begs the question what it is that mobile phone providers take as standard score when approving a mobile phone contract. In view of the above, itís correct to say that guaranteed mobile phone contracts are designed for even those with a fairly good credit score but simply canít get approved or have no guarantee of being approved.

With a guaranteed mobile phone contract, individuals with a fairly good credit score can apply for a mobile phone contract and not have to bite their nails second guessing and worrying on end as to whether they will be approved or not. Alternatively, people with no credit score can also benefit greatly from guaranteed mobile phone contracts. Generally, most mobile phone providers tend to reject people with no credit score as they do not have access to their past payment history. As such, they do not have a way of ascertaining whether such people are capable of making payments on time or not.

Guaranteed mobile phone contracts give such people a perfect opportunity to start building their credit score from scratch. Provided that they are guaranteed of an approval even in the absence of a credit score, such people can start building their own credit score from scratch. By making their payments on time and never defaulting, they stand a chance to build a very good credit history for themselves which will go a long way in helping them to access credit in the future. With that said, we can say with finality that guaranteed mobile phone contracts are not designed for people with bad credit. It is very much open to anybody who is ready and willing to apply for them.