A bad credit score could end your hopes of owning an iPhone 5

Published on 1 January 1970 by Raffick Marday

Tech-savvy consumers looking to invest in the latest smartphone handset or the iPhone 5 could be left disappointed if their credit score is not up to scratch.

Mobile phone contracts Rumours are currently rife in the tech-world that the launch event for Apple’s latest handset will take place next week.

Apple recently sent out invites to selected journalists, inviting them to an event on September 12 in New York.

The invitations, which say ‘It’s almost here’, have fuelled rumours that the new version of the iPhone will be launched next Wednesday.

The new handset is expected to cost more than £500 – which means that purchasing the handset upfront is not likely to be an option for everyone.

To add insult to injury, more than a third of people are unaware that their credit rating can affect their contract.

Research from global information services company Experian has revealed that a third of people do not realise that a bad credit rating could lessen their chances of getting a good contract.

Agencies who keep track of your financial arrangements – such as credit cards, loans, gyms and mobile phone contract – and check how good you are at repaying them, calculate your credit rating.

Your score depends on multiple factors, which could include whether you are on the electoral role and how long you have lived at your current address.

Experian said that it is impossible to determine the exact score that mobile phone firms are after, as each lender has an individual check list of desirable attributes that it looks for in customers.

A spokesman from Experian said: “Phone companies calculate your credit score when you apply for a mobile phone contract, so usually the higher your score, the better your chance of getting the phone you want.”

They added that anyone wishing to take out an iPhone 5 contract would require a relatively decent rating, on the grounds that monthly payments are likely to be higher than with other phones.

Just one missed or late payments could reduce your score – and thus dash your hopes of taking out a contract.

While some products are simply not available for those with a poor credit history, a number of credit and prepaid cards are launched with people with a bad credit history in mind.

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