Three Commitments You Must Make When Looking For a Bad Credit Mobile Phone
In the UK today, the worst that can ever happen to you is having a poor credit score. Having poor credit score will make it impossible to access loans, insurance, and even mortgage because companies consider you a high-risk party. However, you can still enjoy the best smartphone of choice by selecting the right bad credit mobile phone dealers. Having poor credit score is an indication of the following problems;
- Bad credit history
- Unpaid loans/debts
- Clearing utility bills
Though you have acquired the best bad credit mobile phone, it is important to broaden the focus and target raising the credit score. Here are four main commitments that will help you get higher value from the deal.
Commitment to improving your credit score
A commitment to improving personal credit score will be very useful because you will no longer be declined for services such as loans and phone contracts. To achieve higher credit score, the first step should be correcting the errors in your credit report. Often, these reports contain errors because the credit reference agencies have to rely on third parties to gather data when computing people's scores.
You can also build a higher credit score by building a positive history. Consider borrowing from the personal account because the banks are unwilling to lend you. You might also use collateral to get short loans and clear them fast.
Financial experts also recommend that people with poor credit should keep their credit lines open as opposed to closing them. If you have a credit score, consider keeping the line open even if it has a big debt so that attached history can raise the credit score.
Ensure to always clear bills on time. Though many people argue that utility bills cannot affect their credit score, it is untrue. If you default and a recovery agency is contracted, the first step is forwarding a report to credit reference agencies. This can compromise your efforts to get a better score.
Drawing and using a good debt recovery plan
One of the main problems faced by people with poor credit score is outstanding debts. While falling into debts is very easy, getting out is difficult and could take years. Your commitment after getting a bad credit mobile phone should be drawing a good debt recovery plan and putting it into use.
A good plan should involve identifying and categorizing the debts to identify what to clear first. For example, you might consider starting with those that have smaller balances. Here, you should ensure that the minimum allowed monthly remittance is done on all loans and direct the additional funds to clear the loan with the lowest balance. Once the loan with the lowest balance is cleared, the entire effort should be redirected to the next loan as you gain momentum to clearing all the debts.
Focus on selecting and jumping to the most cost effective carrier
While you might have picked a carrier because it offered the anticipated bad credit mobile phone, there is no need to stick there if the charges are high and coverage is poor. However, the only time you can make a shift is at the end of the contract. You must, therefore, commit to keeping reviewing other carriers to establish which one is better for you and switch over at the right time.