What happens if you're rejected for a mobile contract?

Being turned down for a mobile contract can come as a shock. But your chances of being accepted next time depend on what you do next. Find out more with our step-by-step guide.

Why have I been turned down for a mobile contract?

When you apply for a new pay-monthly contract, the mobile network provider will run a credit check to make sure you can manage the payments. And if it finds something it doesn’t like – such as a record of unpaid debts – it may turn down your custom.

If you genuinely have no idea why you have been rejected, the first thing to do is therefore to check your credit record.

Step 1: Check your credit record

You can check your credit score quickly and easily with our free Credit Score tool, which shows you exactly what the phone provider was looking at when it made its decision.

Once you've seen your credit report, the reasons for your rejection may be much clearer.

However, if you can't see any good reason why you were turned down, it’s a good idea to check your report via all the main providers (Experian, Equifax and TransUnion) to make sure the information they have on you is accurate and up to date.

If you spot any mistakes, you can then ask the relevant credit bureau to correct them.

Step 2: Consider SIM-only deals

If you have an old handset you can use, or you can buy a more affordable refurbished, mid-tier, or older model, you only need a SIM-only deal to go with it.

Most monthly rolling, or pay-as-you-go, SIM plans don't come with any credit check at all, so you can sign up for data, texts and minutes from networks such as giffgaff, SMARTY, and Lebara, whatever your credit status.

However, if you want to boost your credit score so you can get a pay-monthly phone contract in the future, it’s sensible to sign up to a longer-term SIM plan: for example, a 12-month contract.

These contracts usually still involve a credit check, as the network will want to ensure you can make the monthly payments.

But because you're not paying off the cost of a pricey handset, the contract length will be much shorter, and your monthly bill will be lower – meaning you have a much better chance of being accepted.

Networks that offer SIM-only deals with a credit check include iD Mobile, Three, and Vodafone.

Importantly, paying your monthly SIM bill on time will show that you can sensibly manage a contract. This will improve your credit score and increase your chances of being accepted for a standard contract next time.

If your financial situation is stopping you from getting a mobile phone contract, our guide to bad credit phones explains your options and offers more tips on how to improve your credit score in the meantime.

💡 Top tip: Trying to trim your outgoings? Take a look at our handy tips for cutting your phone bill.

Step 3: Wait before reapplying for a pay-monthly deal

The trouble with failing any kind of credit check is that it leaves a footprint on your file, which can temporarily make it even harder to get credit or be accepted for a mobile phone contract.

If you simply start applying for every contract you see in the hope that one accepts you, you'll therefore have even less chance of getting accepted.

But don't worry. Take some time to brush up your credit score, prove you can be trusted using a SIM-only deal, and before long you'll be able to successfully apply for a contract again.