When you turn 18, you may be excited to apply for your first phone contract. However, if you have no credit history, you may be wondering if it`s even possible. The good news is that it is possible to get a phone contract at 18 with no credit – but it may require some extra work.
First, it`s important to understand why having no credit can be a hindrance when applying for a phone contract. Phone companies generally use your credit score to determine if you`re a good candidate for a contract. They want to know that you`re likely to make payments on time and that you won`t default on the contract. When you have no credit history, phone companies don`t have any way to gauge your creditworthiness.
Here are some steps you can take to increase your chances of getting a phone contract:
1. Consider a prepaid plan. If you`re not able to get approved for a phone contract, you can still get a phone and service by choosing a prepaid plan. With a prepaid plan, you pay for your phone and service upfront each month, so there`s no need for a credit check.
2. Get a co-signer. If you have a close friend or family member with good credit, consider asking them to co-sign on a phone contract with you. This means that they`ll be responsible for paying the bill if you`re unable to do so.
3. Build your credit. If you`re not in a rush to get a phone contract, consider taking some time to build your credit. Start by applying for a credit card and making small purchases that you can pay off each month. You can also take out a small personal loan or finance a small purchase to build credit.
4. Look for specialized programs. Some phone companies offer special programs for those with no credit or bad credit. These programs may require a deposit or have higher fees, but they can be a good option if you`re unable to get approved for a regular contract.
While it can be frustrating to have no credit history and be unable to get approved for a phone contract, there are still options available. By considering a prepaid plan, getting a co-signer, building your credit, or looking for specialized programs, you can get a phone and service that meets your needs.