Unmasking Guaranteed phone contracts

It is in human nature to question everything especially when we know very little about it. When guaranteed mobile phone contracts first hit the market, there were individuals who simply could not understand its model. Some were quick to dismiss it as a pyramid scheme while others wholeheartedly embraced it. Whichever the case, the reality of the matter is that guaranteed mobile phones have indeed weathered the storm and are today one of the most sought after mobile phone contract types in the market.

What are guaranteed phone contracts?

While the term guarantee might look on the surface as an exaggeration, the truth of the matter is that guaranteed phone contracts indeed give individuals with a poor credit rating guarantee of a mobile phone contract approval. In simple terms, you no longer have to fret or think long and hard before applying for a guaranteed mobile phone contract if you have bad credit. You can indeed be guaranteed of an approval the state of your credit score notwithstanding. In fact, the selling point for these contracts has everything to do with the keyword “guarantee”.

Are you really guaranteed of a phone contract or is it just a marketing gimmick?

To a larger extent, we can say that you are guaranteed of a phone contract. However, to blankly state that everyone who applies for a one of these contracts has the guarantee of approval would be an exaggeration of sorts. In reality, there exist conditions especially if you are seeking to get approved for the latest high-end smartphone. Most providers insist that you make an upfront deposit before you can get approval. The secret of approval, therefore, lies in you applying for old handsets or simply put, handsets which have not been recently released.

What is the major distinction between guaranteed phone contracts and standard mobile phone contracts?

The most discernible distinction has to be the perks. The truth of the matter is that standard phone contracts have better perks or benefits as compared to guaranteed phone contracts. The number of minutes, texts or even data bundles offered under a guaranteed contract pales in comparison to that of a standard phone contract. Secondly, the period of commitment also differs. While those on standard contracts have the leeway to determine the minimum contract length, those on guaranteed contracts do not have that luxury. Thirdly, fees are another notable distinction. Those on guaranteed contracts pay high monthly fees compared to those on standard contracts because of the risk factor.

When all is said and done, the truth of the matter is that guaranteed phone contracts have indeed been a saviour of sorts especially to individuals with a less than average credit score. Add to that the fact that it accords them an opportunity to mend or repair their credit score and you get to understand why their popularity won’t wane anytime soon.