What to do when you get rejected for a business phone contract?
Taking out a business plan is a wise decision when growing your business.
And while the process is easy, there are a few things that restrain you from getting a business account.
Here we discuss the three main reasons you might get rejected for a business account even when you are eligible for it. So what to do when your contract is denied? We have some solutions.
The main reason you cannot have a business contract is your low credit score. See if you’re maintaining a good credit score so that you can pass the credit check.
You may have opted for a larger number of contracts that cannot be granted based on your credit score or you may have entered some misinformation while applying for the contract.
The first reason your contract might decline is a credit score check. You need to have a good credit score to be eligible for a contract. But first, let’s talk about how credit scores work.
How does a credit score work?
Your credit score is based on your credit reports.
A good credit score
Your score is better when you’re making repayments on time, don’t have outstanding debts and have been using loan applications previously.
helps create trust and it ensures that you will be available to pay the loan payments. For security purposes and to stay away from criminal activities, a credit check is a must.
A bad credit score
On the contrary, a low credit score increases the risk factor. If you have payments not cleared when they were due or have previous loan applications that were denied, it will increase the chances of your contract being declined.
How to maintain a good credit score?
Maintain a good credit score, so whenever there is a credit check for a business line, you will not have anything to worry about. Have a look at these steps to keep a good credit score:
- Pay loans that are due on time.
- Don’t max out your credit limit.
- Make wise decisions while buying things on credit, your economic activity impacts your credit score.
- Make sure you have a good credit history showing up on the credit report, it establishes trust.
If you can’t maintain a good credit check, try Pay As You Go plans.
Wrong or misinformation provided
Another common reason to decline is when you type or assume some information that does not match the credit file. which makes it susceptible to a decline out of fear that it could be a fraud.
If you are sure that your credit score is good and have no other reasons for a decline; then you can use the appeal form to overturn the decision of declining your contract. This is then reviewed case by case and although we cannot give any guarantees, it often resolves the issue.
Opting for more lines than credit score can allow.
If we’re applying for lines more than our credit score enables, chances are it will be denied.
Once a customer visited our store and wanted four phones for her employees. After we had a good chat with her and told her all the reasons why her contract application may have been denied, she figured out the answer. Her credit score only allowed three phones, but she had applied for more than that causing it to decline.
We offer customers the number of contracts they can handle based on their credit checks. If you’re eligible for three lines only then your application will be accepted after a credit check. Those who got declined can then reapply for another line after three months which will be accepted if the credit score has been maintained.
Things you should know about phone contracts…
- Declining a contract means we cannot offer the customer any post-pay (contract) service and that means you would need to wait for 90 days before you can reapply. In the meanwhile, you can choose plans that are pre-paid (pay as you go).
- Sometimes the customer would be asked for additional proofs of identity and address such as bank statements, utility bills and photo ID to aid the decision of the credit application.
- If this happens it often means our credit team will not make a decision there and then the customer will need to come back to the store once a decision has been made.
Give Your Business an Edge.
If you’re wondering whether you’re eligible for a business plan, have a look.
Learn all about business contracts and we’ll love to talk to you. Contact us at firstname.lastname@example.org or visit our nearest store.