These days, it’s pretty common for broadband providers to run a credit check before offering you a contract. But why? And is there a way to avoid it?
If you have no real credit history, or are in the process of rebuilding your credit score, it’s still possible to stay connected. And still get a great broadband deal, too.
Read on for our tips on broadband credit checks and, most importantly, manoeuvring around them.
Why do broadband providers run credit checks?
Put simply, broadband providers want to make sure that you’ll be able to keep up with monthly payments. By having a look at your credit report, they can see how you’ve handled your finances in the recent past, and make a decision accordingly.
If all looks good, then great! But if there seems to be a history of non-payment in your file, then the provider may judge you a financial risk, and deny you a contract.
What kind of credit check will a broadband provider run?
There are two kinds of credit check – hard and soft. Make sure you know beforehand which one a provider is going to run, and make a decision accordingly.
Soft credit checks are much less invasive; failing one is a good indication that you should take a look at your financial situation, but won’t impact your overall credit score. On the other hand, failing a hard check can leave a mark on your credit report – one that will last for two years – and multiple hard checks (failed or otherwise) in quick succession could act as a major red flag for lenders and providers.
Some broadband providers opt for a soft credit check, some a hard check – it’s entirely down to the provider, so best to check before you make any decisions. Fortunately, the provider should be up-front about it.
What happens if you fail a credit check?
It’s not a great feeling to fail a credit check – and it might impact your credit score going forward – but don’t worry, it’s not the end of the world. At least in broadband terms.
Most providers, including the biggest names like Virgin and BT, will try to find a way around a bad credit score if they can. They may be prepared to offer you a broadband deal provided you pay a deposit, or pay upfront for the first month and any equipment.
They may also be able to offer you an alternative deal, such as a short-term rolling contract or pay-as-you-go plan.
How can you avoid a credit check when buying broadband?
If you’d really rather avoid a credit check, fear not! It’s still possible to get a great broadband deal without one – you may just have to adjust your expectations slightly.
- Prepaid or PAYG (pay-as-you-go) plans – These kinds of plans offer providers more security and much less risk – with the added benefit of being more flexible for the customer – and so usually won’t require a credit check.
- Short-term rolling contracts – Many providers offer these plans as an alternative to their one- or two-year fixed term contracts. Like PAYG plans, they provide less risk to the provider and so will likely not require a credit check.
- Alternative broadband options – You don’t have to limit yourself to traditional, fixed-line broadband. Check out deals on mobile broadband and MiFi, both of which use 4G and 5G mobile data signals and which may not require a credit check.
- Social tariffs – If you’re claiming Universal Credit, Pension Credit or some other benefits, you may be eligible for a social tariff broadband deal. These are standard packages offered at lower prices for low income households, and more often than not do not require a credit check.
Of course, there are also some providers who, as standard, don’t require a credit check at all. Probably worth a look.
Broadband providers with no credit check
It’s always worth checking what’s available in your local area, but here are some of the bigger names that won’t (generally) require a credit check.
- Plusnet – Offers standard and fibre broadband deals with no upfront credit check. They’re also a great provider, often recognised by Ofcom for their customer service, and offer some pretty attractive prices.
- NOW Broadband – Offers standard and fibre broadband deals with no upfront credit check. You also have the option to add premium Sky TV content to your service for a small additional cost.
- Community Fibre – Usually offers fibre broadband deals with no upfront credit check, although their terms and conditions state that they may perform one on prospective customers. Something to bear in mind.
How to improve your credit score
Of course if your credit score isn’t looking too healthy, it’s always a good idea to try and improve it. The good news is that it’s not impossible; the bad news, though, is that it may take some time to see an improvement.
Here are a few simple things you can do to help:
- Get a free credit check – It’s always a good idea to check your credit score every now and then, and to check your details too. Even something as small as a spelling mistake or incorrect address could impact your score.
The three credit reference agencies – Experian, Equifax and TransUnion – all offer free credit checks. Each agency calculates their scores slightly differently, so it might be a good idea to use all three.
Your broadband provider will use one of these three agencies too, so performing a check yourself before signing up will help you to avoid any nasty surprises. - Close any old bank accounts or credit cards – Old, unused accounts or cards may impact your credit score, so get rid of them if you can. Especially any joint accounts held with ex-partners, as their credit score could affect yours.
- Register to vote – Making sure you’re registered on the electoral roll can be a big help to your credit score. Providers and lenders often use this to confirm your name and address.
- Use a credit-builder credit card – If you’re in a position to do so, think about using a credit-builder card. Responsibly, of course. This could help build your score over time.
- Pay your bills – It may seem obvious, but simply paying your bills on time and keeping up with credit card payments will help to build your credit score. Who’d have thought?
