What is a bad credit SIM only deal?

A bad credit SIM only deal is designed for those who have previously got into debt or missed payments, or for those who have a low credit score.

Unlike long term 12 month and 24 month contracts, you won’t require a credit check for a bad credit SIM only deal.

This is because you aren’t taking out a contract. Instead, you will be paying upfront for every 30 days, with no obligation to continue paying every month. You can cancel at any time.

Bad credit SIM only deals are also ideal for those who have a low or non-guaranteed salary.

Bad credit SIMs can be set up to renew each month, also known as rolling SIMs.

Do I need a credit check for a bad credit SIM only deal?

No, bad credit SIM only deals do not require a credit check, as there is no contract involved.

You pay upfront every 30 days for a set of allowances, including data, minutes and texts.

You can stop paying at any time you wish.

This is different from long term contracts, which legally require you to pay every month until the end date. With long term contracts, missed payments will affect your credit score, and pay be passed on to a debt collector.

Who should get a bad credit SIM only deal?

Bad credit SIM only deals are not just designed for those with previous debts or for those who have missed credit payments in the past.

• Low credit score - If you haven’t taken out credit cards, contracts or mortgages in the past, you will likely have a low credit score. This isn’t necessarily a bad thing, it just means you will appear more risky to networks, as you essentially haven’t built a good credit reputation. A bad credit SIM only deal can help you build your credit score.

• Existing debt - If you have existing debts that need to be paid off, particularly if you have multiple credit cards or phone contracts, you will less likely be accepted for a long term SIM only deal. Since a bad credit SIM only deal doesn’t require a contract, you’re guaranteed to be accepted.

• Low salary - Long term contracts can have large monthly payments. If these monthly payments are considered a large chunk of your salary, you’re less likely to be accepted for a contract.

• Non-guaranteed salary - You can have a non-guaranteed salary if you’re a freelancer, self employed or on a zero hour contract.

• Student - Young people, particularly students, are generally seen as more risky to networks when it comes to long term contracts. This may also be true even if you have a good, stable income and a good credit score.

• New arrivals to the UK - if you’re a new arrival, you won’t show up on existing records, and you probably won’t be on the electoral roll. This means you’re less likely to pass a credit check for a long term contract.

• No fixed address - without a fixed address, you may appear more risky to networks when attempting to take out a phone contract. However, for most bad credit SIM only deals, you don’t need to provide a permanent address.

Will I be accepted for a bad credit SIM only deal?

Yes, since there is no credit check required, you are almost guaranteed to be accepted for a bad credit SIM only deal, regardless of your financial situation.

As there is no contract involved, you will not appear as a risk to networks. There are no legal requirements to pay every month, and you can stop at any time you wish.

Do I need an unlocked phone for a bad credit SIM only deal?

Since December 2021, Ofcom have made it a legal requirement for all networks to sell their phones unlocked, even if sold with a contract.

Before this date, several networks chose to sell their phones unlocked, even though it was not a legal requirement for them to do so. These networks include Three, O2, Virgin Mobile, Giffgaff and Sky Mobile.

If you purchased your phone before December 2021, it will most likely be locked if purchased from one of the following networks:

• BT
• EE
• Tesco Mobile
• Vodafone
• iD Mobile (iPhones only)

However, unlocking your phone is easy and free. You will have to contact your network and request an unlock code, which you will be required to enter when inserting a SIM card from a different network.

Your network will ask you for your phone’s IMEI number, which you can find by dialling *#06# from your phone.

What happens if I stop paying for a bad credit SIM only deal?

Bad credit SIM only deals only require you to pay upfront for every 30 days you wish to have allowances.

Since there is no contract, you can decide to stop paying at any time you wish. This may simply be because you are low on cash for the month.

If you stop paying, your SIM and number will continue to work as normal. However, you won’t have any allowances to use data, or any allowances to make calls and texts - until you start paying again.

Do I need to pay upfront for a bad credit SIM only deal?

Yes, when you purchase a bad credit SIM only deal, you will be required to pay for the initial 30 days.

For every 30 day onwards, you should continue paying for your plan to keep your allowances, including data, minutes and texts.

Is a bad credit SIM only deal the same as pay as you go?

Both are quite similar, but not exactly the same.

With a bad credit SIM only deal, you are paying for a plan that includes fixed allowances for every 30 days.

With pay as you go, you won’t get any allowances. Instead, you will be charged whenever you use a service from your network, such as per MB of data, minute and text. This used to be the most popular type of SIM plan more than a decade ago, however they are now less popular and generally more expensive compared to 30 day plans.

Bad credit SIM only deals and pay as you go are similar in regards to not requiring a contract or credit check.

Will a bad credit SIM improve my credit score?

Yes, bad credit SIM only deals are ideal for building upon low credit scores.

However, you must continue to make payments each month, and it can take a year before you see any effect on your credit score.

Eventually, you will be able to build a high enough credit score to have a greater chance of being accepted for a long term contract.

Can I get a bad credit SIM only deal if I do not have a job?

Yes, nearly everyone is guaranteed to be accepted for a bad credit SIM only deal, even if you don’t have a job.

However, when purchasing a bad credit SIM only deal, you must be able to afford the initial 30 days upfront.

There are no credit checks for bad credit SIM only deals. This means you won’t need to disclose your salary or occupation, unlike with long term contracts.

Are bad credit SIM only deals more expensive?

Contrary to popular belief, bad credit / 30 day SIM only deals can actually be cheaper with data allowances around 10GB or less.

However, for plans with more data, particularly unlimited data, you can expect to pay more compared to long term SIM only deals, but not by much.

This is because with long term contracts, a network is guaranteed to make money from you every month, unlike with bad credit SIM only deals, where there is no legal obligation or contract for you to continue paying every month.

What are the pros and cons of no credit check SIM only deals?

Pros

• No credit check required
• You don’t need a job or stable income
• Guaranteed to be accepted
• Can build upon a low credit score

Cons

• Some plans may be more expensive compared to long term contracts
• Not as many deals to choose from
• Generally do not come with additional benefits, such as freebies and rewards
• Can take up to a year to have a positive impact on your credit score

Which networks offer bad credit score SIM only deals?

Most of the major networks in the UK offer bad credit SIM only deals:

• Asda Mobile
• EE
• giffgaff
• iD Mobile
• Lebara
• O2
• Plusnet
• SMARTY
• Talkmobile
• Three
• Virgin Mobile
• Vodafone
• VOXI

Why do I keep getting rejected from SIM / phone contracts?

There can be several reasons why you keep getting declined from long term SIM only and phone contracts.

If you have a history of not paying debt, with missed payments on existing contracts, loans or similar, you are less likely to be accepted for a SIM or phone contract.

Furthermore, if you have a low salary, unstable income or you recently became self employed, you will be seen as more of a risk to networks, as there is more chance you will miss monthly payments.

In addition, those who have multiple credit cards or existing phone contracts may have exceeded their credit limit, which is calculated based on your income. You will be more likely to be accepted once you have paid off your credit card debt, and/or have finished your existing phone contracts.

Young people and students will likely have a low credit score simply because they haven’t had enough time or opportunities to build one.

For those without a permanent address, or for those who will frequently change address, you may be seen as more of a risk to networks when taking out a long term contract, with more chance of being rejected.

You can increase your chances of being accepted for a long term contract by registering on the electoral roll.

How can I find out my credit score?

Finding out your credit score is easy and often free.

There are several companies which allow you to see your credit score for free:

• Credit Karma
• Experian
• ClearScore

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