Credit checks for phone contracts explained
When you take out a pay monthly phone contract, you’re borrowing to pay for the phone. So the network or retailer will check your credit history before agreeing.
What happens
- The network runs a hard credit check when you apply. This is recorded on your credit file and other lenders can see it.
- Several applications close together can make it harder to get credit, so avoid applying to lots of networks at once.
- Some retailers offer an eligibility checker, which uses a soft search that other lenders can’t see.
Improving your chances
- Make sure you’re on the electoral register at your current address.
- Check your credit report for mistakes with the main credit reference agencies. You can do this for free.
- Choose a cheaper phone or pay more upfront, so you borrow less.
If you’re turned down
Don’t keep applying elsewhere straight away. Check your credit report first. A SIM-only plan with a phone you already own, or a pay as you go phone, doesn’t need the same check.
Frequently asked questions
Does a phone contract affect my credit score?
Applying leaves a hard search on your file. Paying on time can help your credit history; missed payments will harm it.
Can I get a phone without a credit check?
Yes. Pay as you go phones and buying a phone outright don’t need a credit check.