Check out the family offers. You may want to ask a family member with a good credit score to sign the contract. This is when you choose a family business, when multiple lines can be connected to a single contract, but only one person pays the bill and undergoes a credit check. However, you may not be able to get the phone model you want and your monthly payments can be considerably higher than a standard contract. This is not an option to be taken lightly. Signing a service contract with a mobile operator is often necessary to obtain the desired mobile service and mobile phone. But committing to a two-year contract can be intimidating, even if you`re not an affairphobe. Paying your monthly SIM bill on time can also show that you can manage a contract significantly, which can increase your credit score over time. Many cell phone contracts don`t require you to pay a dime in advance, even for the latest smartphone. Instead, you commit to paying regularly over, say, 18 or 24 months. Improve your credit score.
To improve your chances of being accepted for a mobile phone contract or other form of credit in the future, you can take the time to improve your credit score by, for example: But just like other loan applications, such as for a mortgage or loan, you could be rejected for a mobile phone contract if you have a bad credit score. There are also carriers that only offer prepaid services, including Cricket Wireless and Boost Mobile. These carriers offer cheap plans with no contract and no credit check. Many are owned by a larger carrier like AT&T and often operate on the same networks as larger carriers, but manage to offer plans at a lower price. Get a guarantor. Alternatively, you can ask someone to essentially guarantee your contract by co-signing it. But, of course, they need to feel comfortable being responsible for missed payments, which offsets the risk to the network provider in the event of a default. If you pay on time, this option can also gradually improve your credit score. Pay a deposit. The network provider may face a bad credit history by asking you to make an upfront payment for the contract to compensate for the risk of not making payments. You sign up for a service that costs $39.99 per month, but when your bill arrives, the total amount you owe is closer to $50 than $40.
What for? One of the reasons is taxes and fees that cannot be avoided. Before you sign your contract, ask your carrier for an estimate of your actual bill, including taxes and fees, so you can get a better idea of how much you`ll actually pay each month. The way credit scores are calculated varies between different agencies, but they give providers an idea of how reliable you can have when you sign up for a contract. While you may be happy with your shiny new phone right now, keep in mind that you won`t always feel that way. It may lose its call before your service contract expires, or it may be lost or broken. Learn what options you have to update or replace your phone and what kind of fees you`ll be charged in these situations. Choose a SIM-only plan. If you`re ready to buy a handset in advance or already have an old phone to use, you can opt for a monthly SIM offer. These are cheaper than full-fledged contracts because you don`t get and pay for a phone as part of the business. Keep in mind that every financial contract is an obligation – so if you`re rejected, consider whether it makes sense to sign up, especially if you`re struggling with other bills. The sample phone contract below can help you and your child get started. Use the contract as is, or modify it according to your own rules and consequences.
Review the contract together regularly as circumstances and challenges may change. Some carriers offer a limited trial period where you cancel your contract without paying the penalty fee. Find out if your carrier offers this trial version, which will probably not last more than 30 days. Get a “bad credit” deal. There are specialized companies that give telephone contracts to people with bad credit. You can do an online search to get an idea of what`s available, or talk to a consultant at a mobile phone store. This agreement between [Parents` Names Go Here] and [Tween`s Name Goes Here] sets out the family rules and consequences regarding the use of mobile phones. Creating a cell phone contract between you and your tween is a great way to teach your child these rules and responsibilities, as well as the consequences if you don`t take them.
Be sure to review all the points of your contract and give your child the opportunity to ask questions and even make suggestions. Opt for a pay-as-you-go offer. If you want a phone for occasional use, then a pay-as-you-go offer might be fine. Once you`ve purchased a phone in advance, you`ll pay the credit if needed. They are not bound by a contract and are not subject to a credit check. If you really have no idea why you were rejected, it`s worth checking your credit report. This way, you can know what the provider was looking at when they decided not to offer you a contract. But whatever you do, avoid asking for a certain number of mobile contracts in the hope of being accepted. Each will include a loan search and leave a trace in your file that could affect your ability to get future loans like a mortgage.
Before you register, find out how to unsubscribe from the contract if necessary. Most companies charge a fine if you decide to terminate the contract prematurely, and these fines can go up to several hundred dollars. Find out exactly how much you owe if you need a deposit and find out if the fine decreases over time. For example, you may be fined $360 if you cancel in the first year, but these fees may decrease each month thereafter. You will still have a credit check, but you are more likely to be accepted because the payments for these contracts are usually lower, so the risk to the provider is lower. Link E. Mobile phones, risk and responsibility: understanding children`s perspectives. Cyberpsychology (Brno).
2013;7(1). doi:10.5817/CP2013-1-3 This article has been updated. It was originally released on December 22, 2014. The amount of the deposit depends on your credit status, the package and the provider. You`ll usually get the deposit back once you`ve made payments worth several months, usually between three and 12 months. You also have the option to opt for a factory-unlocked smartphone, but for this you will have to pay the full amount of the handset and buy a cellular plan separately. You can visit Amazon, Best Buy or the smartphone manufacturer`s website to buy one. Traveling abroad with your phone can be an expensive business, but that`s only if your phone works abroad. Not all carriers offer a service that is compatible with technologies used in other countries. And even if that`s the case, you`ll probably find that all the calls you make or receive abroad are very, very expensive. If you`re a frequent traveler, find out about your international calling options. One downside: Since there`s no obligation with a prepaid plan, you can`t pay for your phone in installments like you would with a traditional plan.
The price can range from less than $1 to more than $500, depending on the phone you choose. However, you may be able to avoid the initial cost of a new phone by using your existing phone. You can do this at one of the three major credit reporting agencies – Experian, Equifax and TransUnion (formerly Callcredit). Experian offers a free service that allows you to sign up and check your credit score for a general overview. One of the best ways to save money on a cellular plan is to only pay for as many minutes as you need. If you`re not a frequent caller, you may not need to opt for the unlimited calling schedule. But you need to make sure you pay at least as many minutes as you want to use each month, as your allowance can cost you dearly. For every extra minute you use, you`ll be charged a per-minute rate, which can be dizzying. .