How to Finance a Phone with Bad Credit: 8 Options Explained

Introduction

Having bad credit can make it difficult to get approved for a phone plan. Many providers require a credit check before approving a customer for a contract or installment plan. But don’t worry, there are still several options available to finance your phone. This article will explain eight of them in detail.

But first, let’s define what bad credit is. According to Experian, “Bad credit generally refers to a FICO score below 630.” A FICO score is calculated by looking at five different factors: payment history, amounts owed, length of credit history, new credit, and credit mix. Any one of these factors can have a significant impact on the overall score.

Consider a No Credit Check Phone Plan

A no credit check phone plan is a great option for those who don’t want to go through the hassle of applying for a traditional phone plan. With this type of plan, you don’t have to worry about your credit score being a factor in the approval process. Instead, all you need is a valid form of ID and proof of income.

The biggest benefit of this type of plan is that you don’t have to worry about being denied due to your credit score. However, there are some downsides to consider. For example, these plans typically come with higher monthly fees and deposits, which may be more than you can afford. Additionally, they often come with limited plans and features.

Look for Special Offers and Discounts

Many phone providers offer special offers and discounts to customers with bad credit. These offers can range from discounted prices on handsets to waived activation fees. It’s important to do your research and compare different offers before making a decision.

You can usually find these offers online. Simply search for “phone deals for bad credit” or “discounted phones for bad credit” to see what’s available. Additionally, you can also check with local providers to see if they have any special offers or discounts.

Use a Co-Signer

Using a co-signer is another option for those with bad credit. A co-signer is someone who agrees to take responsibility for the debt if you fail to make payments. This can help you get approved for a phone plan even if you have bad credit.

The biggest benefit of using a co-signer is that it can help you get approved for a plan. However, there are some downsides to consider. For starters, it can be difficult to find someone willing to co-sign for you. Additionally, if you fail to make payments, it can hurt both your credit score and your co-signer’s.

Get a Secured Credit Card

Getting a secured credit card is another option for those with bad credit. A secured credit card is essentially a credit card that requires a cash deposit as collateral. The amount of the deposit determines your credit limit, and you can use it just like a regular credit card.

The biggest benefit of a secured credit card is that it can help you build or rebuild your credit. As long as you make your payments on time, your credit score should improve over time. Additionally, many of these cards offer rewards and other benefits, such as cash back and discounts.

Ask Friends or Family for Help

Asking friends or family for help is another option for those with bad credit. If you have someone in your life who is willing to help, they may be able to cover the cost of your phone or provide you with a loan to help you get the phone you need.

The biggest benefit of asking for help is that you don’t have to worry about your credit score being a factor in the approval process. Additionally, it can be a great way to save money since you don’t have to pay interest or other fees associated with a loan. However, it’s important to approach this option carefully and make sure you are honest and upfront about your situation.

Try a Pay-As-You-Go Plan

Finally, a pay-as-you-go plan is another option for those with bad credit. With this type of plan, you pay for your service upfront and don’t have to worry about a credit check. Additionally, you can choose how much data and minutes you want, so you only pay for what you need.

The biggest benefit of a pay-as-you-go plan is that you don’t have to worry about a credit check. Additionally, it can help you save money since you only pay for what you need. However, it’s important to note that these plans typically come with fewer features and lower data speeds.

Conclusion

Having bad credit can make it difficult to get approved for a phone plan. But don’t worry, there are still several options available to finance your phone. This article has explained eight of them in detail, including no credit check phone plans, special offers and discounts, using a co-signer, getting a secured credit card, asking friends or family for help, and trying a pay-as-you-go plan.

It’s important to remember that each option has its own pros and cons, so it’s important to do your research and find the one that best meets your needs. With the right plan, you can get the phone you need without having to worry about your credit score.