You want an Apple iPhone but have less than perfect credit. Are you completely out of luck? Not necessarily.
There are ways to finance an iPhone even if you have bad credit. Or it could be in your best interest to consider other financing options that don’t require a credit check.
What are the Usual iPhone Payment Plans and How Do They Work?
It depends on your phone carrier. Most require a down payment, and you’ll make equal monthly installment payments for up to 36 months to cover the remaining balance. However, some carriers don’t require a down payment and only request that you cover the taxes at the point of sale or during the first billing cycle.
You can also lease an iPhone from T-Mobile for a 12 to 18-month period if you’d prefer more affordable monthly payments. Then, when the lease term ends, you’ll have the option to purchase the phone if you wish to keep it. Or you can turn it in if it’s still in good condition and select another phone.
Another option to finance your iPhone is through a buy-now-pay-later platform, like Affirm or Klarna. However, be mindful that you’ll generally be limited to refurbished devices in some instances.
If you decide to buy an iPhone directly from Apple, there are two primary financing options:
- Apple Card: It operates like a traditional credit card, and you’ll be on the hook for the minimum monthly payment (which includes a small percentage of the principal balance and interest). You can earn 3 percent cash back on Appleproductpurchases and 2 percent on all other purchases when you use your Apple Watch or iPhone at the point of sale.
- Apple Card monthly installments: Select the monthly installment option when you checkout at apple.com, at an AppleStore or on the AppleStore app. The amount you spend will be added to your Apple Card balance, and you’ll earn 3 percent cash back on the purchase. Plus, you won’t pay interest on qualifying Apple purchases.
Factors Cell Phone Companies Consider When You Apply
Credit Score
What’s your credit score? Is it on the higher or lower end?
Payment History
Do you pay your bills on time? Can you afford your outstanding debt obligations, or are there late payments, collection accounts and charged-off accounts that indicate otherwise?
Length of Credit History
How long have you had credit? Do you have a track record of responsibly managing your debt obligations?
Amount of Credit
How much do you owe lenders and creditors? Is it an acceptable amount compared to your income, or are you overextended?
What Credit Score Do You Need to Finance an iPhone?
You’ll generally need a credit score of at least 600 to qualify for iPhone financing. This requirement could be different for other carriers, though, and you could be approved if there are other factors that compensate for the lower score.
In the meantime, consider working towards better credit health to avoid being turned down by lenders and creditors in the future.
Will a Financing Application Affect Your Credit Score?
Each time you apply for financing, whether it’s a loan or credit card product, a hard inquiry is generated. Your score may dip by a few points, but the impact is typically only temporary. Hard inquiries only impact your credit score for up to 12 months, and they fall off your credit report within two years.
Can You Finance an iPhone with No Credit Check?
It is possible to set up an iPhone payment plan and receive financing even if you do not want to go through a credit check. The Apple Pay Later loan is a viable option for people who are okay with a soft credit check, which does not impact your credit score. Customers can use various types of financing, such as a flex plan or a 90-day purchase option.
How No Credit Check iPhone Financing Works
If you’re considering a no credit check loan or line of credit for your iPhone, here’s what you should know.
Initial Down Payment
A down payment will help you get a better rate and term for your financing. Getting a discounted phone is even better since your down payment will cover a higher percentage of the purchase.
Monthly Installments
You’ll then have to make monthly payments over the loan’s duration. You can choose a 3-month option or pay off your loan for multiple years. Stretching out your loan’s term results in lower monthly payments but keeps you in debt longer.
Lease vs. Loan Options
iPhone leases do not give you ownership over the device. Once your lease expires, you will either have to pay an additional buyout fee or trade in your device for the latest model. Then, you’ll have to make lease payments for a new smartphone. It’s a useful way to avoid committing to an iPhone model, but it’s not the best deal in the long run.
A loan is the better choice for saving money in the long run since the phone is all yours at the end of the loan. You won’t upgrade to the latest iPhone at the end of the loan term, but many of the recent iPhones have minimal improvements that don’t warrant paying the full price each time Apple releases a new model.
Where to Find No Credit Check Financing for iPhones
Old and new customers can find many various options for no credit check financing. These are some of the places you can look.
Online Retailers
You can find great deals if you compare online retailers. These companies will give you the financing you need as long as you meet basic requirements.
Mobile Carrier Programs
A T-Mobile customer or someone who does business with another carrier can set up an installment plan for the latest iPhone. Many carriers will offer special deals to their customers. Make sure you read the fine print before committing to any program.
Local Electronic Stores
Best Buy and other electronic stores have some locations where you can speak with a representative and establish an installment agreement for an iPhone. You’ll have to provide a state-issued photo ID to receive approval for this type of financing, but you may have to present additional information as well.
Alternatives to No Credit Check Financing
While no credit check financing has several benefits, it’s not the only choice. Knowing the availability of other choices can help you find the right option that aligns with your financial needs.
Buy Now, Pay Later Services
Buy Now, Pay Later services allow you to break any purchase into small monthly payments. Most BNPL programs allow you to make four monthly payments toward a purchase. You usually don’t have to worry about interest payments if you make four monthly payments. However, some people are extending their BNPL plans to cover more months. In these scenarios, interest rates can apply.
Using a Co-Signer
A co-signer with good credit can make traditional financing more accessible. You will end up with a lower annual percentage rate if your co-signer has good credit. The lenders will look at the co-signer’s credit history when deciding on the loan’s rate and terms. Co-signers become legally responsible for making monthly loan payments if the borrower cannot keep up with the payments. That’s why it’s risky to be a co-signer, and it’s usually reserved for family members and friends.
Saving Up and Buying Outright
It’s possible to buy an iPhone without taking out a loan or signing a lease agreement. Some people save up before a big iPhone launch and buy it outright. It’s even easier to cover the costs of buying an iPhone and accessories if you look for older models.
Discounted iPhones are readily available if you look further down the list of model releases. As a quick heads up, it’s possible to get a mint iPhone X for under $200. Meanwhile, you’re looking at roughly $800 for an iPhone 15. Using a debit card for the purchase ensures interest will not accumulate. You also won’t have to work with a financial service provider and can save on time and costs.
Conclusion: Is No Credit Check Financing Right for You?
No credit check financing allows you to get an iPhone even if you do not have the best credit. You can use this type of financing for select devices, but you can end up with a high interest rate and various fees. It’s better to pay for an iPhone outright or buy a cheaper model instead. No credit check financing is a viable route if you need a new iPhone but don’t have enough cash in your bank account to make the purchase.
