In order to take out a monthly standard mobile phone contract it is a pre-requisite that the customer is credit checked beforehand. The reason for this is that the mobile phone networks do not charge their phone bills upfront and as part of a standard pay monthly contract they will inevitably supply a free mobile handset (often with a value in the hundreds of pounds). The networks ensure that customers pass a credit check before offering a new contract and by passing the credit check it is hoped that the customer will be willing and able to pay their bills in full and on time.
There is a perception that because a SIM only tariff does not include a free mobile phone it is easier to pass a credit check or that some networks do not even choose to credit check new customers. Therefore, some online sources recommend that people with poor credit history should opt for a SIM only deal as they will have a much greater chance of being accepted onto the contract than they would on a standard mobile phone contract. We have investigated this claim by speaking directly with each of the major mobile phone networks.
We can reveal that it is not true to suggest that it is easier to pass a credit check for a SIM only deal than it is to pass the standard pay monthly credit check. The vast majority of the mobile networks in the UK use the same credit checking agency, Equifax, and the criteria for passing a SIM only credit check is the same as it would be for standard pay monthly mobile phone contract.
For example, an exact quote from a Virgin customer service representative states –
“We can confirm that a credit check will be required for you to setup on a SIM only deal or a Pay Monthly contract with us. The credit check for these is the same and it would not be easier for you to pass for a SIM only deal, compared to a Pay Monthly contract.”
and 3 customer service state –
“The credit check are the same for both the contracts.”
If you think that you might have a low credit score and there is a chance that your application for a SIM only contract will be declined due to failing a credit check, you might want to check your credit rating before you apply for a SIM only contract. For information on how to do this and how you can increase you credit rating see the Consumer Utility Services credit reports introduction for details.