The tell-tale differences between bad credit mobile phones and ordinary mobile phone contracts

Ever wondered what the difference is between an ordinary phone contract and a bad credit mobile phone contract? Well, on the surface, the difference lies in the fact that bad credit mobile phones are primarily for individuals with bad credit and ordinary contracts are for those with an above average or excellent credit score. That said, the differences are not limited to that. We are going to shed light on some of the stark differences.

Credit checks

As you probably know by now, with bad credit mobile phones, credit checks are a non-issue. While providers of this type of mobile phone contracts like to advertise the same on the platform of no credit checks. The truth of the matter is that credit checks are mandatory by law but the difference is that the results simply have no impact on the final decision to either approve or reject an application.


The benefits under bad credit mobile phones pale in comparison to those of an ordinary phone contract. In other words, the number of minutes, data bundles and text messages pale in comparison to those given under a standard phone contract. There are even situations where those under bad credit mobile phones are omitted from certain promotions and canít switch or upgrade their phones at will.

Deposit requirement

Under bad credit mobile phones, it is pretty normal for providers to ask for a security deposit especially if the customer wants an expensive mobile phone. This is usually just a security measure. However, the same cannot be said of individuals with a perfect credit score under standard mobile phone contracts. The good news is that the amount of money given out as a deposit is refundable once the contract comes to an end provided of course that the account is in a good state.

Mobile phones

No doubt, those under standard mobile phone contracts have a wide array of phones to choose from including the latest released mobile phones such as the iPhone 7 or Samsung Galaxy S7. They can apply and get approved with little resistance. The same cannot be said of those under bad credit mobile contracts. In fact, they usually have a few select phones and those that need the latest high-end phones have to part with a deposit before they can be approved for the same.

Well, the good thing about bad credit mobile phones is that it gives individuals with a poor credit rating an opportunity to not only snag a phone contract but also gradually improve their credit score while at it!