Why A Guaranteed Mobile Phone Contract Is the Best for you

The reports of the new smartphones such as the latest Galaxies, iPhones, and Sony XPeria among others release sends the market into frenzy. No one wants to miss them. In fact, some of these phones are so advanced that they can be used to prepare projects, monitor kids, carry vehicle diagnostics, and even link with smart devices such as Amazon Echo. However, these smartphones come at a premium. For example, the latest Samsung Galaxy S8 Edge will cost you a whopping £800.

Putting together this amount is never easy. In fact, even when clients want cheaper phones costing less that £500 dollars, the amount is still very high to many people. However, this is not the end of the road to getting your phone of choice. The best alternative is going for guaranteed mobile phone contracts. Here are four key reasons why phone contracts are the best for you.

You can get the phone of choice by paying only a few pounds every month

If you ask some people how long it will take to save several hundred dollars, the answer will be very many months. For others, it might be impossible because of other obligations. However, a guaranteed phone contract allows the user to get the phone of choice by paying a very small amount. For example, you can get a £700 smartphone by paying about £30-£40 for about 18 to 24 months.

It is possible to get the latest phones even with poor credit

Poor credit score is a great bottleneck to accessing any form of credit in the UK today. From mortgage to direct bank loans, no lender will be willing to work with you because you are considered a high-risk party. However, you can still get a guaranteed mobile phone contract from dealers who do not factor the credit score. In other cases, you can use a guarantor with good credit score.

There is little disruption in personal finances

Often, assets acquisition often brings a lot of disruptions in personal finances because they take a huge chunk of monthly income. However, phone contracts bring about limited disruption because you only pay a small amount over a long time. For example, you can access some of the top phones by paying as little as £15 every month for up to 24 months. This means that you can continue with normal lifestyle while still enjoying the best that the latest smartphones have to offer.

They provide a perfect opportunity to build personal credit score

If you get a guaranteed phone contract with bad credit, it is a perfect opportunity to start building your score. By sticking to the agreed repayment agreement, the report will be captured on your credit report and pull it up. Even in the event that the phone company of choice is skeptical about your credit status, a SIM only contract can be used to demonstrate personal credit worthiness.

Guaranteed phone contracts come in handy to ensure that every person can get access to a phone of choice. In fact, you can even pay less by negotiation with the dealer or respective company when selecting the plan of choice.

Credit Management Plan Is the Best Way to Sail Through Any Guaranteed Phone Contract Stress-Free

When my friend, James Arlington, walked to my desk in my office in Manchester late last spring, his face was full of despair. His phone was lost the previous day at the train station, and he needed another phone urgently. However, no phone company wanted to trade with him because of poor credit score. For about one year, he had faced issues like loss of his first born daughter and change of job that threw his finances off balance. After defaulting on several loans, his credit score plummeted, and he is now considered a high-risk party by most financial institutions.

Using a guarantor to secure a phone credit

As a great friend and a neighbor, I could not let James continue suffering. So, I agreed to guarantee him a good smartphone. However, I insisted that he had to get a good credit management plan to clear the contract and get out of debt completely. The phone company agreed and gave James a brand new Samsung Galaxy S6 because my credit score was ok.

Many phone companies are willing to enter into a contract with you even when the credit score is very if the risk level can be lowered. You can do this by raising some deposit, going for a cheaper smartphone, or picking a SIM only contract. You can also use a guarantor with a good credit score who commits to repay the loan in case of default.

The credit management plan that helped James get out of debt completely

The credit management plan we drew borrowed from several financial experts including one of my closest accountants at my workplace accounting department. Here is how it worked.

  • Identifying all the sources of revenue

The first step involved identifying all sources of revenue. This included James’s salary plus revenue from part-time jobs he did downtown Manchester. His wife also runs a small bakery shop from the home mini bakery.

  • Setting aside cash for all monthly expenses

Having identified all the sources of cash, I helped James to calculate all the monthly expenses and set aside ample cash for them. This included things like rent, utility bills, transport costs, and food for the family. The expenses also factored school fees for his two kids.

  • Putting aside some cash into the emergency account

To avoid disrupting the repayment schedule for the mobile contract, James set an emergency account where he kept some of the income to handle unexpected issues.

  • He attacked the loans with high interest first

To clear all the loans, James allocated more funds to the high interest and risky loans. For example, the guaranteed mobile phone contract and credit card loans were given priority because of associated high-interest rates. Besides, he kept meeting the minimum monthly payment for other loans such as school loan.

  • Identifying areas of austerity and directing extra cash to repay high-interest loans

To make guaranteed mobile phone contract and other loans even easier to clear, James identified areas of austerity in his personal and family lifestyle. For example, he acquired three bikes for him and two children to go to work and school respectively. Then, he subscribed to online movies that only charged a small annual fee and gave up on fortnight visit to the expensive theater. All the extra cash was directed to clearing the high-interest loans.

  • He checked with the reference bureau and corrected the credit report

Within six months, James had cleared 50% of the loans, and everything appeared manageable. He went to the credit reference bureau and corrected the report that had a number of mistakes. Even before the phone contract was over, his credit score had picked up, and financial institutions can now give him credit once again.


Five Things That Determine Whether a Guaranteed Phone Contract Is Great For You

Have you been looking for a mobile phone contract but cannot succeed because of bad credit? It is time to go for guaranteed phone contracts. These are contracts offered by dealers or phone companies to all clients including those with poor credit scores. Even as you go for a guaranteed mobile phone contract, it is important to identify the deal that best fits your situation. In this post, we bring you five key things that determine whether the guaranteed phone contract is the right for you.

The overall price of the phone in relation to cash tag

Over the last couple of years, phone contracts have become the order of the day. More people prefer them because they allow them to own the best smartphones by paying only a small amount every month. However, you need to be cognizant of how much you are paying above the cash price.

Though just like buying an item on hire purchase, you expect the overall price to be relatively high; it should not be too much. For example, if a smartphone of choice is worth £800 establish how much more you will pay by the end of the 18 months contract. Go for the deal that delivers higher value for money.

Ease of application

Often, people looking for guaranteed mobile phone contracts have already made the decision or at crossroads. For example, the previous phone might be damaged or gotten lost, making it prudent to get a new device. Therefore, the best contract should be easy and fast to get. Here, it is important to evaluate the requirements of the selected dealers before committing to work with them.

The phone plan under consideration

While many people’s focus is trained on the handset when looking for guaranteed mobile phone contracts, it is advisable to be different. Though the handset is crucial, it is important to be extra careful with the plan you are jumping into. You should carefully review daily and monthly data, SMS, and talk time requirements before picking a specific plan. For example, if you make calls for 10 minutes every day, send about 10 text messages, and a few emails, the best email should have about 300 talk minutes, 300 text messages, and about 250 mbs.

Ease of shifting to other carriers at the end of the contract

Once you enter into a contract with the phone company of choice, it must be followed to the end. However, what do you do if the company you selected turns out to be more expensive compared to others in the UK? The guaranteed mobile phone contract you select should allow its clients to shift to carriers of choice once the contracts are over. Before signing the contract, make sure to evaluate the ease of shifting so that you are not tied to a costly carrier.

No hidden costs

One thing that phone buyers must appreciate is that the dealers are out for business and will go to any length to optimize returns. It is, therefore, crucial to be extra smart when looking for a smartphone contract. In particular, you need to scrutinize the contract agreement to identify and avoid any hidden cost. For example, if you decide to clear the phone earlier than agreed, the phone company should not attach a penalty.

Hidden Tricks That Phone Companies Use To Reap More from Guaranteed Phone Contracts

When phone companies work on contracts, they leave no stone unturned to reap more from their clients. When it comes to guaranteed phone contracts, the returns are even higher because rarely do clients scrutinize the agreements. In this post we look at five hidden tricks that every client is looking for a guaranteed phone contract should be aware of.

Directing buyers to specific high-cost tariffs

Often, dealers shout and paste in large fonts the high number of minutes, bigger data, and more text messages that clients will get after selecting a specific deal. However, rarely do client scrutinize the plans to pick what they want. For example, if you only call 20 minutes daily, send 20 text messages but rarely go online, a contract offering more than 600 talk minutes, 600 text messages, and a lot of data will not be worth. This is because most of it will not be utilized. Here, you must negotiate only to get what you use for higher money value.

High APR on the original phone price

Often, people going for guaranteed mobile phones rarely interrogate the actual value of the deal they are getting into. This results to some jumping into deals that are very costly. For example, rarely do people compare the cash price of a specific model with what is being offered on the contract. The APR is usually very high and could reach 200% in some contracts. For example, if you acquire a phone worth £700 and by the end of the 18 months contract you will have paid £1500, the annual interest will be 114.2%. To keep this cost low, it is important to consider going for shorter contracts and raising some deposits. You can also select a low-cost mobile phone.

Penalties on early repayment

As clients think about the sense of style that will come with the new smartphone on the contract, the phone company is counting on regular use to reap more. Therefore, the longer you stay during and after the contract, the better it is for the company. For example, the company will charge you more for exceeding the agreed monthly plan. It is because of this focus that many companies attach stiff penalties to keep you from clearing the contract early. If you take an 18 months contract, paying it within 12 months will attract very stiff penalties.

Tying clients to specific carriers

The phone you are acquiring on a contract will no doubt be locked to the specific carrier. While the expectation is that the carrier will release the phone after the contract, many companies rarely do it. They attach strict conditions that discourage clients from shifting carriers. For example, some companies indicate that you need to make a 90 days’ notice before the process of unlocking the phone can commence. Even after three months, you will still be required to observe other rules before being let off.

It is very crucial to be careful by looking at these tricks when looking for a phone contract in order to pay less and enjoy higher value for money.