Myths associated with mobile phone contracts

As is with everything under the sun, mobile phone contracts also have misconceptions. People like to tilt the truth and present it as they deem fit. Unfortunately, most ignorant people take these twisted rumours as gospel truth. Mobile phone contracts are not immune to untruths and misconceptions. It is for this reason that we are going to take a look at some of the myths associated with guaranteed mobile phone contracts.

Myth #1: You can’t get a phone contract if your address is blacklisted as a result of the last owner

There is no such thing. It is imperative to note that a credit score is attached to an individual and not an address. As such, if you recently moved to an address whose past owner was blacklisted, it won’t affect your ability to apply and be approved for a phone contract. The only time you will find references to a previous address owner to your credit report is if you are in some way connected financially i.e. took a mortgage together or own a joint bank account.

Myth #2: I don’t have an existing credit rating so mobile phone providers have no reason to deny my application

As surreal as it might sound, you are no better than a person with a poor credit rating if you have no credit history to your name. Essentially, mobile phone providers and lenders use your credit history to determine how prudent you were with your finances in the past. If they can’t find anything to base their decision on, they tend to reject your application. It is just a way of mitigating risks on their part.

Myth #3: Items appearing on your credit report last a lifetime

There is no such thing. In reality, lenders are more interested in your financial behaviour for the past 6 or 7 years. They wouldn’t base their decision on a missed payment that took place 20 years ago. After all, it has no bearing or relevance to the decision being made today.

Myth #4: To repay your credit card debt in full will negatively affect your credit score

This is nothing more than hot air. It is a myth and nothing more than that. If anything, repaying all your credit card debt in full positively impacts your credit score. In fact, lenders and mobile phone providers view you favourably and are more likely to approve future applications without any problems.

Granted, there are many more myths associated with mobile phone contracts. However, the above 4 are the main ones. Ensure that you are well informed before making a decision as you will live with the consequences for a lifetime.