What led to the popularity of Bad credit mobile phones?

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As surreal as it may sound, a couple of years ago, bad credit mobile phones deals were not as popular as they are today. In fact, finding a provider that offered mobile phone deals for individuals with a less than average credit score was akin to finding a needle in haystack. It was simply an exercise in futility. Those with a poor credit rating in the United Kingdom struggled with one rejection after the other to a point that they became distressed. Many years fast forward and the situation has changed for the better considerably. The playing field has been leveled and now those with bad credit can now apply and get approved for mobile phone plans hassle free.

But what led to the emergence and subsequent popularity of bad credit mobile phones? Initially, providers in the UK were very strict when it came to approval of people with a less than stellar credit score. In their own evaluation, such people were bad for business. They were treated differently from those with a good or perfect credit score. Their applications were thrown away without a second glance and this became a pain in the neck for those with a poor credit rating. In as much as this was an easy decision for providers across the UK, it soon became untenable especially with the global crunch that hit the world.

The ensuing financial crisis plunged many economies of the world into red alert. Even those who initially had a healthy history found themselves on the receiving end. Well known companies collapsed and governments found themselves borrowing to keep things afloat. The level of debt among individuals also increased and as a result it became very difficult for mobile phone providers to keep up with their initial hard stance as relates to individuals that had a bad credit rating.

With the cold reality of locking out many customers who had bad credit, mobile phone providers all over the UK had to make a compromise. They had to find a way of accommodating UK citizens who had bad credit and hence the birth and subsequent popularity of bad credit mobile phones. With the provision of bad credit mobile phones, applying for a mobile phone contract became an easy endeavor for individuals across the board. Providers were also able to romp in more customers than they initially did when it was a policy to accept only those people that had a healthy history.

The other reason that led to the popularity of bad credit mobile phones other than the financial crisis that hit the world was the sudden realization that having bad credit is not always a function of financial irresponsibility. For long, the presumption was that a poor credit rating was the direct consequence of financial responsibility. However, it became apparent that this was not always the case as there were other external factors beyond a person that informed it. Factors such as incapacitation and employment termination largely contributed to a person’s poor credit rating. In this light, it became foolhardy for UK mobile providers to continue castigating those with a poor credit rating on the basis of their credit score hence the popularity of bad credit mobile phones.