4 things you should do after getting a bad credit phone contract

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4 things you should do after getting a bad credit phone contract

Getting the latest, slim, shiny and more powerful smartphone is the dream held so dearly by many. However, getting that top of the range phone with bad credit can be very difficult. Many phone companies see you as a high-risk party and do not want to work with you. However, there are still ways of getting achieving this.

  • Raise some deposit to lower the risk for the phone company.
  • Go for a budget smartphone to keep the risk lower.
  • Opt for a SIM only contract and proof you are a credit worthy buyer.
  • Liaise with the phone company directly to evade additional requirements by vendors.

The most important things to do after getting bad credit mobile phone

After getting that bad credit mobile phone contract, it is prudent to be cognizant that you have added another ‘loan.’ You must therefore, be more prudent to avoid sinking deeper into debt. Here are four things you should do after getting a bad credit mobile phone contract.

Review causes of bad credit ratings

You have finally got that lovely smartphone. Congratulations! But, what brought about the bad credit in the first place? In many instances, bad credit rating is brought about by failure to meet personal financial obligations especially repaying loans. For example, you might have delayed or failed to pay credit card loans, overdraft, bank loans or mortgage. Because the bad credit mobile phone you got is another loan, understanding these causes of bad credit will help to meet all the repayment obligations.

Work on clearing past loans and financial obligations

Think of it this way; any person can get into debt and need some financial assistance. Indeed, many people have debts at some point in life. However, these credits should not stand in your way to progress, or at least not for a very long time. It is prudent to work on a way of clearing the loans as fast as possible. Though it may sound a monumental task, it is possible.

  • Review loans to establish the least amount you can repay for each of them.
  • Consider negotiating with the lender especially in the case of bank loans.
  • Since you are only repaying the minimal amount of each loan, concentrate the extra amount (balance between paying the minimum amount and paying the maximum amount) to clearing the loan that has the least balance.
  • After clearing the loan with least balance, move to the next, and review your personal credit report.

Review your credit report to clear errors

Many are the times when people’s bad credit score comes from errors in their credit reports. Financial institutions are mainly focused on making a profit and could easily delay or forget to submit your loan clearance feeds. By checking your credit score, you can correct inconsistencies so that the report is correct.

Review your sources of revenue with a view to raising income

If you are employed, a good way of enjoying financial freedom and meeting every monetary obligation is having additional lines of revenue. Think of investing some money and diversifying sources of income. Good examples of such investments include capital markets, working a part-time job, and exploring personal talent for revenue.