No Credit Check Mobile Phone

In years past the only way you could have a mobile phone was by signing a contract agreement with the company for either one or two year. To get a contract your credit is run through the ringer and if there is one blemish the mobile phone company will deny you a contract for a phone. Now, as the companies have found they are losing money to those with bad credit, they have come up with the no credit check mobile phone plan.

This type of plan requires no credit check to get a mobile phone plan, but the plans are specifically designed for just those customers. There are few if any frills that come with these plans; generally just basic handsets and restrictive calling and texts. The monthly fee to have a no credit check mobile phone plan is usually higher than a normal contract plan. There are big differences in the two types of plans which I will explain in some detail.

Contract

• To have a contracted plan through a mobile phone company the company first does a credit check; this is to insure that you will make your payments as promised and if they see on your report that you have failed to do so in the past, they will deny you the contract.

• Contracted plans bind you to a term of usually no less than one year and no longer than two.

• Contracted plans give you freedom to use your phone anywhere any time and offer you a wide range of options such as internet, picture messaging, and texting.

No Credit Check Mobile Phone

• There is no credit check required; typically called "pay-as-you-go" plans. These are perfect for kids as most offer unlimited local calling.

• If you decide to stop using the phone and not pay the bill, there are no forfeit fees or penalties.

• In the long run, they are cheaper than using calling cards or buying one of those cheap throw away phone you can get at any department store.

• Any phone that the mobile phone company offers to their contract customers can be used on the no credit check mobile phone plans as well.

There are many advantages as well as disadvantages to these plans. They are the perfect solution for people who don't travel or need long distance calling. They are great for kids as their first cell phone to give them the responsibility without the worry of them running up a high bill. They are great for elderly people who just need a phone for emergencies. But they are not the best option for somebody who needs to be in constant contact with others outside their calling zone or people who are needing internet access to stay in touch with email or business prospects. Contract phones offer those kinds of services where as the no credit check mobile phone plans don't. It all depends upon what your needs are and if you qualify for a contract plan.

For more information on getting a mobile phone with bad credit history, please visit Bad credit mobile phones for more details.

Article Source: http://EzineArticles.com/?expert=Henry_Li