Not every mobile plan involves a credit check. The ones that do treat you as a borrower, because you are paying for something over time or running up a bill after you have used it. This guide explains which plans are checked, why applications fail, and what to do if yours does.
Which plans are checked
| Plan | Credit search? |
|---|---|
| Phone on a pay monthly contract | Yes. The phone is usually a loan, so the provider treats you as a borrower. |
| Fixed term SIM only, such as 12 or 24 months | Usually yes |
| 30 day rolling SIM only | Varies by provider. Some do not search. |
| Pay as you go | No |
| SIM free phone bought outright | No. Paying by instalments or buy now pay later involves a check. |
Checks are for adults. You must be 18 or over to hold a contract in your own name. If you are buying for a child, the account holder has to be an adult.
What a search leaves on your file
A credit search leaves a record. Most hard searches show on your Experian report for about 12 months. Equifax keeps most for at least a year, and some sources say hard searches can be visible for up to two years. Soft searches, such as checking your own report, are visible only to you.
The effect of a hard search on your score is small and temporary, but several in a short space of time can look risky to the next lender. Experian says the effect can last about six months. A decline is not itself recorded, though the search that came with the application is.
A phone contract can also help you. Mobile providers count as credit providers for contracts, so on time payments can build your history, and missed or late payments stay for six years. Pay as you go does not count.
Why people are declined
Networks do not use your headline score from a free app. They use their own scoring with your credit report, and many do an affordability check. Common reasons include:
- Too little credit history, because you are young or new to the UK
- Your address or identity cannot be confirmed, often because you are not on the electoral roll
- Several applications in a short space of time
- Late payments or a high balance on other credit
- Income that is too low or looks unstable
- An error on your credit file, or a financial link to someone with poor credit
- A mistake on the application, such as an address written differently from the one on your file
The provider does not have to tell you the exact reason. If it was a solely automated decision, you have the right to ask for a human to look at it again. Ask the provider’s credit team for a manual review, and say so in writing.
What to do after a decline
- Do not reapply straight away. Another hard search will make things worse.
- Check your reports at Experian, Equifax and TransUnion. You are entitled to a free statutory report from each, and viewing your own report is a soft search.
- Fix mistakes with the agency, and check that your electoral roll registration and current address are right.
- Wait a few months, and apply only once. Space applications out.
- In the meantime, use a refurbished phone you can pay for outright or buying the handset yourself, along with a plan that does not need a search.
If you suspect an error caused the decline, the Information Commissioner’s Office explains how to get your credit file corrected.
Improving your chances
- Register to vote at your current address. Lenders and networks use the roll to confirm where you live, and it can take weeks to show on your file.
- Pay bills and any existing credit on time.
- Keep credit card balances low, and avoid taking on credit you do not need.
- Check the file for old addresses, accounts that are not yours, and links to other people.
- Do not pay a credit repair company for something you can do for free.
Options that avoid a hard search
Pay as you go has no credit check. Our guide to pay as you go as a fallback covers how it works.
Some providers say they do not run a credit check on certain rolling plans. Smarty, VOXI, giffgaff and Lebara are among those reported to offer plans like this, but policies change, so confirm on the provider’s own page. Fixed term SIM only plans are checked at most networks. See rolling SIM only options after a decline for what to look at.
Some providers may accept a deposit, or another person as a guarantor. It is worth asking, but do not count on it.
New to the UK, or building history from nothing
Credit history from abroad does not carry over, so a new arrival can fail through no fault of their own. The same goes for someone who has just turned 18 or has held no credit in the last six years. A UK bank account, a UK address and a place on the electoral roll all help. Start with pay as you go or a plan with no search, then build a record.
When you are ready for a handset, see what a handset contract asks of you.
Where to go next
If you are checking options before you apply, browse deals you could apply for and choose only the ones that suit your situation.
FAQs
Does being declined harm my score?
The decline does not show on your file, but the hard search from the application does. Several in a short time can make the next application harder.
Can I appeal a decline?
Yes. Ask for a manual review. If a solely automated process made the decision, the law gives you the right to ask for human involvement. You can also complain to the Financial Ombudsman if you think the provider acted unfairly, though a lender is entitled to set its own lending rules.
Is there a score I need?
No. Networks use their own criteria with your report and an affordability check, so there is no single number.