Cell phones have become a necessity for most people, but the reality of getting a new cell phone plan in Canada is that it is quite expensive.
If you are planning on purchasing a new phone, you can check your credit score for free before going to your service provider to avoid any surprises. If it is lower than you thought, you may get refused for a new cell phone contract.
Lucky for you, there are four main options to get a cell phone with bad credit in Canada.
1. Get a pre-paid plan
Your first option is to get a pre-paid plan. These do not require a credit check since they are not contract-based and there is therefore no risk for the provider.
On the downside, purchasing a phone without a plan is expensive and cannot be financed since you must have paid for the phone before getting the plan. Getting a used cell phone from a trusted source is the perfect solution. Additionally, since December 2017, all phones sold in Canada must be unlocked so you will not have extra fees to pay.
Once you choose whether you want to purchase a new phone or bring a used one to your provider, you can choose a prepaid plan that meets your needs.
2. Get a co-signer
If the prepaid option is not for you, get someone who trusts you to co-sign your new contract.
Although this will help you get the plan and phone you want, there are multiple disadvantages, one of them being that you may be limited in the actions you can take yourself. For example, if you want to make any changes to your plan, your co-signer will have to do it for you.
You also will not get the benefit of improving your credit with a recurring monthly payment since the contract will be under your co-signer’s name. This also means that if something goes wrong, your co-signer’s credit score will be negatively affected instead of your own. This can potentially impact your relationship with the person.
3. Join a family plan
You can also find a friend or family member with an open line on their plan. The same pitfalls as the previous option apply, but there are also some added benefits.
Generally, the more people on a family plan, the less the monthly plan costs per person. The person whose plan you are joining may also get additional benefits from their service provider for opening a second line or referring someone.
Data, minutes and texts will usually be in a shared pool for family plans, so both parties should make sure they respect their fair share of usage.
4. Pay a security deposit
Finally, if you do not pass a credit check but absolutely want to get a contract in your name, most carriers will ask for a deposit. The deposit amount varies depending on your chosen plan and credit score.
It can be hard to fit into your budget, but your provider may refund your deposit—with interest, of course—through a credit on your monthly bill once certain conditions have been met.
Paying for your monthly plan can also help you improve your credit score and loyalty to one provider can help you get better deals in the future.
Choose Recycell for your next cell phone
Now that you know your options, it is time to choose which one is best for you.
If you considered the different options and believe that a prepaid plan with a used phone is your best bet, why not buy a used phone from us! We will gladly help you find the right phone at an affordable price.