Will your mobile phone improve your credit score | moneyfacts.co.uk

Michelle Monck

Michelle Monck

Consumer Finance Expert
Published: 14/01/2021

At a glance

  • Defaults on your mobile contract will show on your credit report.
  • A mobile phone contract will need your credit score to be checked.
  • Missed mobile payments can stay on your report for six years.

How does a mobile phone contract affect your credit score?

When you take out a mobile phone contract, this will show on your credit report. If you manage your phone contract well and make your payments on time, then a mobile phone contract is a good way to help improve your credit score. However, if you miss a payment, your mobile contract provider will inform the UK credit reference agencies of this and your credit score could be reduced.


Mobile phone contracts are not covered by The Consumer Credit Act and this means that mobile phone providers can decide when they want to report an account as in default at their discretion. There is no requirement to have a set period for arrears and a Default Notice does not need to be served either.

I’ve missed a mobile phone payment; how long will this show on my credit report?

If you miss a mobile phone payment and your mobile phone provider reports this as a default, it can appear on your credit report for up to six years. This may impact your ability to get other credit during this time.

How to check your credit report to get a mobile phone contract

Taking out a mobile phone contract usually involves making an initial payment and then a regular monthly payment covering the cost of using the mobile network and to repay the cost of the handsets. This can be considered a form of credit as you are making payments after using the service. For this reason, mobile phone providers require you to pass a credit check before they will give you a contract. Usually being approved for a mobile phone contract is easier than other forms of credit, but if the provider is not happy with your credit score, they may refuse you a contract altogether or place restrictions on your usage.

Reasons to check your credit score before getting a mobile phone contract

Here are some reasons to check your credit score before applying for a mobile phone contract.

 

  1. To make sure your credit report is accurate
    Before applying for any form of credit you should check your credit report is accurate. Inaccuracies in your credit report could see you being wrongly refused for credit.
  2. To check your credit score
    Your credit score and history are an important part of how the mobile phone contractor decides if they will give you a contract or not.

You can check your credit report using a credit check service.

Improve your credit score

LOQBOX helps to grow your credit score while you save. Decide what you could save in a year. They lock away a 0% loan for that amount in your LOQBOX. You pay off the loan over 12 months, growing your credit score as you go to unlock better borrowing. Once your loan is repaid, you release every penny into a new bank account for free. Or into an existing account for £30.

Disclaimer: This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.

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At a glance

  • Defaults on your mobile contract will show on your credit report.
  • A mobile phone contract will need your credit score to be checked.
  • Missed mobile payments can stay on your report for six years.

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