With the cost of living crisis and increasing interest rates going on in the UK, it’s no surprise that there has been a surge in online searches as SIM Only Demand Rises.
People either want to protect their existing credit score, and don’t want to impact it with a new phone contract, or they are already struggling with missed payments and can’t get a new phone on contract.
Data from YouGov found that 12% of Brits were denied a financial product based on their credit rating between 2018 and 2021.
In general, there are nearly 20,000 searches a month in the UK for advice on getting a phone contract with poor credit based on data from keywordtool.io.
What is a Credit Check?
In the UK, you might need to undergo a credit check when you buy a new mobile phone or SIM-only deal. This will depends on the type of product you’re buying, but generally if you’re buying an expensive handset and only paying a small fee each month, then you’ll need a credit check.
No credit check is generally required for Pay As You Go deals (including phones & SIM cards) or if you pay for the entire handset cost up front.
In order to pass the credit check, you’ll typically need all of the following things:
- You’ll need to be over 18 to pass a UK credit check.
- You’ll need some form of UK credit or financial history.
- Ideally, you’ll need to be on the electoral register at your address.
- You’ll need a good credit score with no history of defaults, CCJs or bankruptcy.
What No Contract Options Are There?
Whilst providers such as giffgaff offer low-cost options, be wary of how much data you may actually need. The lowest cost options are also data-lite, which means using TikTok or Netflix to stream while using mobile data could see you run out fast if you’re on a 2GB a month plan, for example.
VOXI‘s cheapest offer at the moment is a £10 a month SIM only deal, which includes a solid 30GB of data. VOXI offer unlimited data specifically on social media apps, which are some of the most data-hungry – meaning that that 30GB could go far further if choosing a VOXI deal.
The current cheapest deal is from Lebara, which is offering 1GB of data for £1.58 a month for the first 3 months. Nonetheless, should you frequently find yourself on the move, travelling, or in locations with unreliable Wi-Fi access, you might quickly exhaust your data allowance.
There’s no doubt that as SIM Only demand rises offers and deals with no credit checks will be sure to increase.
I love tech and gaming, and am always looking for the ‘next big thing’…