The short answer to this question is ‘yes’.
While a poor credit history won’t automatically prevent you from getting a mobile phone contract, it may make approval more difficult — just like with loans or credit cards.
A mobile phone contract is essentially a type of credit. You’re getting the handset plus the minutes, texts and data (or whatever the package includes), and then paying for it at a later date.
There’s no specific credit score required to get a phone contract. Before offering you one, most network providers will run a hard credit check on your credit report. They will use this information to assess two key elements:
Providers are more concerned with your credit history (instead of just your credit score) as this tells a clearer story of how likely you are to maintain your agreement with them.
No network provider wants to soak up resources chasing customers for money, so if you’ve got a track record of missed or late payments, this may be less favourable.
That said, each provider will have their own criteria, so whilst one might reject you, you may be approved with another.
Yes, you can get a phone contract with no credit history. When you're starting from scratch credit-wise (we've all been there), network providers typically offer a few options. They may:
When you're in an Individual Voluntary Arrangement (IVA), getting a phone contract can be a bit tricky. Generally speaking, you can still get a contract, but there are some important things to keep in mind.
Most IVAs restrict you from taking on new credit over a certain amount (usually £500) without first getting permission from your insolvency practitioner (IP).
Since phone contracts are technically a form of credit agreement, you'll likely need to check with your IP before signing up, especially for contracts with expensive handsets. Many people in IVAs opt for SIM-only deals or pay-as-you-go options to avoid this issue.
There are companies who specialise in phone contracts specifically for people with bad credit. They tend to have more flexible requirements, meaning your likelihood of acceptance is greater, even if you have bad credit. You can find them by searching online or asking a sales adviser in a mobile phone store.
However, if you’re considering this option, bear in mind that the phones on offer are usually older models. Because earlier handset versions aren’t as pricey, there’s less risk involved for the network provider, which might mean they’re more likely to accept your application.
You may also be required to pay an upfront fee, and your monthly payments are likely to be higher.
Having a phone contract can definitely help build your credit score. When you pay your monthly phone bill on time, those payments often get reported to credit agencies, showing you're reliable with your money.
It works because phone contracts are basically like mini-loans — the company gives you a phone and service upfront, trusting you'll pay them back over time.
The longer you keep those payments consistent, the better it looks on your credit history. That said, not all providers report to credit bureaus, so it's worth checking if yours does.
Remember, while a phone contract can give your credit score a gentle boost, missing payments can have the opposite effect and seriously damage your score.
So if you're looking to build credit, keeping on top of your phone bill is an easy win, though you'll want to combine it with other credit-building strategies for the best results.
Tip: Read our guide on everything you need to know about credit scores.
In the UK, you generally need to be at least 18 to get a phone contract in your own name, since it's a credit agreement and requires you to pass a credit check. If you're under 18, you'll likely need a parent or guardian to sign up on your behalf.
Before applying for a phone contract, there are a few things to consider if you’re doubting whether you’ll be accepted:
If you’re rejected for the mobile phone contract you had your eye on, all hope’s not lost.
As mentioned earlier, each provider will have their own criteria, so being turned down by one doesn’t mean you won’t be accepted with another.
However, you may want to look at alternatives to a new phone contract. Providing you have an old handset (or can buy or borrow one), other options could include…
Taking out a SIM only contract means less financial risk to the provider as there is no valuable handset for them to lend you. You simply have a contract for the airtime and data you want, which results in a cheaper monthly payment too. This can therefore increase your odds of being accepted.
Pay as you go packages require you to top up your phone with minutes, texts, and data, as and when you need them. No credit checks are needed for these type of deals, meaning a poor credit history can’t hold you back.
These are where multiple lines can be connected to one single contract. As only one person (the main payer) is responsible for the contract, only they will need to undergo a credit check.
This can be cost-saving as you can get cheaper deals when buying as a group. The negatives are that one person will be liable for all the bills, and paying on time has no positive impact on your credit rating (although you can follow other ways to improve your credit score).
Don’t make the mistake of applying for lots of mobile phone contracts if you’re not accepted right away. As with any type of credit application, they will appear on your credit report, and a string of requests can make you look desperate to future network providers - and lenders in general.
The more applications you make, the less likely the network providers are to say 'yes'.
If your mobile phone contract requests are being rejected because of a poor credit history, the first question to ask yourself is, do you really need it? Taking on any type of credit is a big financial commitment, and one that should only be considered if:
a) you’re 100% confident you can afford it, and…
b) you absolutely need it.
Remember - being realistic about what you can afford is key! A cheaper phone with manageable monthly payments is far better than defaulting on a fancy flagship model.
Disclaimer: We make every effort to ensure content is correct when published. Information on this website doesn't constitute financial advice, and we aren't responsible for the content of any external sites.
Zubin is a personal finance writer with an extensive background in the finance sector, working across management and operational roles. He applies his experience in customer communication to his writing, with the aim of simplifying content to help people better understand their finances.
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