Obtaining a cell phone can become tough for people who don’t have a good credit history. They need to give a huge sum as deposit because of such demands of the service providers. There are times when the service providers do not give back the deposit. Credit rating is a measure of the applicant’s ability to pay a given amount due to someone. If the credit rating is low the person faces difficulty in buying a cell phone.
Prepaid and billed are the two types of plans that service providers offer to a customer. The prepaid plan refers to a plan where the amount to be used for calls is paid in advance which can be understood as something similar to a debit card, where you have an amount already in the bank and you simply withdraw it when you need it. Billed plan on the other hand, refers to a plan where the phone calls are made first and paid later at the end of the month when the service provider charges the customer for the calls.
Bad credit contracts for cell phones can be obtained by people who have a history of bad credits. People who have not been able to pay back some amount to someone is labeled to have a bad credit rating.
Most of the cell phone providers choose to provide their services to people having good credit rating but some of them cater to those with bad credit history. Such firms ask for a deposit which is higher than the one asked from a person with high credit score. This is mainly because of the risk involved. The sum is usually around $200-$400.
This caters to the need of a lot of customers with low credit rating. For some the initial amount may seem high. For them there are other firms who don’t demand a down payment or a deposit amount. However, they are strict if you fail to pay a month’s bill on time. They charge higher fees and penalties. For a lot of people with low credit score, one of the above options seems to work.
If you have bad credit then take a look at: no credit check mobiles and no credit check sim only offers.