Read This before You Sign That Mobile Phone Contract

If you have bad credit, well-meaning friends, relatives and co-workers will often question your decision to sign up for a bad credit mobile phone deal. You can't blame them – since you already have so many financial obligations on your plate, it's a wonder why you'd add one more. However, mobile phones are not just luxuries anymore. You need them to function properly each and every day.

So you may ask yourself, why not just buy a phone outright? Well, for starters, if you have a bad credit rating, it means you're having difficulty managing your finances. As such, where would you even begin to find the money necessary to buy the phone outright? Get a loan? Isn't that just basically the same thing? At least with a bad credit mobile phone plan, you're only putting at risk your credit score. If you're taking out a loan, you need to put whatever you set as collateral at risk.

Truthfully, bad credit mobile phone plans are not only a viable option for people with bad credit; it is actually a better option than purchasing a phone outright. Because the payments are divided into small, monthly increments, you won't have to go through your savings just to get a handset. Also, because of the monthly tariffs, you can properly budget your mobile phone expenses because you know how much you need to set aside for it each month.

However, not everything is good with mobile phone contracts. As with most things in life, it has its ups and downs. This article would be very biased if we only showed the good parts. Because we want our clients to be fully-informed about what they're getting themselves into when they sign the contract, we'll also share the negative aspects of mobile phone contracts. It is up to you to decide whether these negative aspects are livable for you.

For one thing, the monthly tariffs are great for people who are trying to budget their expenses, but they can also be limiting to people who love to use their mobile phones. With most providers, you get a set number of calls, texts and bandwidth each month. Once you exceed these, there's an extra fee per mobile data minute, call and text. This is why you should be careful in monitoring your mobile phone use. If you love to make calls and texts, and love surfing the Internet through your phone, the imposed monthly limit might feel suffocating to you.

It is also a must for you to understand that because you're entering a contract with bad credit, not all options are available to you. There will be some limits as to which handsets you can apply for, so the latest handsets are out of the question. If you're looking for premium plans, you'll have to wait until your credit score gets better, or the company trusts you more. Most monthly plans available to bad credit clients are basic.

Most bad credit mobile phone contracts are longer than normal contracts. Only a few providers offer a 12 month contract if you have bad credit – you'll have to settle for an 18-24 month contract. The reason for this is that most mobile phone plans are tailored according to their user's financial capacity. Since most people with bad credit don't have a lot of financial capacity, the total amount is divided into smaller monthly payments, meaning more months are needed to pay for the full price.

If the aforementioned points are still acceptable to you, then there's no reason why you shouldn't try a mobile phone contract. While it may be difficult at first, as long as you pay your bills well, the provider will slowly gain their trust in you. Who knows, you may even get to avail of better handsets and more features as time goes by.