Cell Phone Contract Declined Due to Bad Debt?
Were you recently declined for a cell phone contract?
The reason may be due to bad debt. Xpert Decision Systems (XDS) is an information bureau that assists companies by listing defaulting creditors and if you appear on their system you won’t be considered as a responsible client.
While it may seem unfair, if you think of a cell phone contract as a loan, then it becomes understandable why the Network Service Providers have strict requirements that must be met before a cell phone contract is approved. A cell phone is a pricey piece of technology and therefore the risk that bad debtors provide to the Network Service Provider is high.
Cell C, MTN, Telkom and Vodacom have all come up with their respective credit score cards which make up the considerations taken into account for all new cell phone contract applications. These score cards assist the Networks in determining whether or not you pass the debt test. Other considerations are income, Blacklist status, work history and living situations. If money is owing as a result of defaulted payment, the Networks will most likely not approve you for a cell phone contract, even if it is a relatively cheap deal.
So what can you do about it?
The first thing you need to look into is a Debt Review. Bad debt isn’t only bad for a cell phone contracts, it will follow you around. Ultimately, there is the possibility that creditors may come after your most valuable possessions; namely your house or your car, which you wouldn’t want them to do.
