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Understanding Mobile Phone Blacklist Status with Phil of Phonefinder
24 Jan 19
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Blacklist Assist

Have you been declined for a mobile phone contract deal? Were you approved for a lesser deal than you applied for? The reason may be a low credit score or a blacklist status against your name.


When credit ratings can make or break your chances of being approved for a cellphone contract (among other things), it is important to understand how you can avoid it.


Cellphone networks in South Africa need to avoid high risk clients. Think of a cellphone Network (Vodacom, Telkom, Cell C or MTN) as if they were a loan provider, because that is essentially what they are. They will loan you a fancy new cellphone and in exchange for small monthly payments. However they need to manage their risk, and because low credit (or blacklisted clients) are often the ones who fail to pay for their cell phone contract after month one the Networks will avoid approving those customers for a phone deal. That is why blacklisted clients will struggle to get the latest mobile phone on contract.


Paranoia around blacklisting is quite justified. Even the name is intimidating, and the actions needed to fix a blacklist status (or low credit score) seem daunting!


Thankfully, credit bureaus now consider both good and bad credit to determine future consumer behavior. This makes it possible for you to correct what is wrong and apply for a phone contract deal in no time at all. Remember that the network providers want to avoid risk (many people fail to pay for their phone contracts), but if they spot positive trends in your credit report, then they may welcome you with open arms.

Still feeling daunted?

Never fear! Your brainy buddy, Phil, is here with some tips on how to improve your credit score and stay clear of the dreaded blacklist status.

Blacklist Help


1. Check your credit report

Get a look at the big picture and see whom you still owe money. Are you paying the entire installment each month? Fit these amounts into your monthly budget and set calendar reminders to ensure you pay them on time.


2. Manage your spending

By knowing what you owe and keeping track of how much credit you’re using, you can keep a firm grip on your debt. A good rule of thumb is to use only 35% of your limit. Say you have a credit card with a R600 limit, but you really, really need/want that new Samsung cell phone deal for R210 pm. Go for it, but then call it quits on credit spending for the month.


3. Keep clear of negative information

Look for ways to actively pay any outstanding debts in full. It may mean tightening your belt for a few months, but it’ll be worth keeping your credit report clear of embarrassing negative information like late payments, charge-offs, repossessions, foreclosures, and bankruptcy. If there is inaccurate information tarnishing your good credit history, you can dispute this information with the credit bureau to have it cleared from your credit record.


4. Build your credit history

Attain a decent mix of credit with store accounts, data deals, and smart phone contracts (wink, wink), for instance, to build a strong credit history.A squeaky-clean and clear credit record tells providers that they can trust you to meet your debt obligations. It’s never too soon to start and never too late to fix.


Need a mobile phone, but you’re still on the blacklist. Now what?

Stressed

The bad news is that bad debt can get in the way of a new cell phone contract. All the networks (Cell C, MTN, Vodacom, and Telkom) require new applicants to pass a Credit Score Card. Unfortunately, any outstanding debts will result in an immediate fail. The good news is that with Phonefinder’s Debt Review service, you can grab your debt by the horns and take that first step in clearing your blacklisted status today!

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Final word from Phil "If you have been declined a phone contract deal then we have great news for you. Phonefinder’s Blacklist Assist can hook you up with awesome blacklisted Smart Phone deals. What can I say; we’re resourceful like that”.





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