Will getting a phone contract affect my credit score after loan for car

[MyMorningHasBroken]

Hi, I've trying to build up my credit rating in the past two years. I have 2 credit cards which I rarely spend on and pay off straight away so there is nothing on them atm, I have an Argos card which I use and have just applied for a small loan £2000 putting down 5,000 upfront payment(which has been approved) to help get another car as mine is causing lots of problems.
I've always had a pay as you go phone and mine is an old iphone 4 I bought off ebay. I'm thinking of getting one I can pay off monthly now but worried it might affect my credit applying at the same time as the car.

My credit rating has steadily got much better and it in 'good' territory atm

likely your credit score will initially drop by a few points as the mobile contract will be another credit account opened in your name. Don't let that discourage you though as monthly mobile payments will be getting recorded on your file every month boosting your score & building your credit history.

Have you signed up to ClearScore?

Hi Dandy, I am on ClearScore.

You may find that having "empty" credit cards affects your eligibility - lenders see it as available credit and take that into account when considering offering further credit.

• seem to take it into account

Thanks scruffy, that's a point !

Maybe I should just get it on my Argos card and pay a little extra?

Nowadays most people have a mobile, and I think most would be on contract - I doubt it's a big deal

You'll probably get better value on contract too.

Off topic but the BT Mobile deals are good, often have sales (extra data etc), discounts if you have BT broadband, and use the EE network so good coverage. I'm moving my family's contacts to them. No affiliation with BT, this isn't an advert!

@MyMorningHasBroken if you get it on your Argos card and end up maxing it out (using up all your credit) that will damage your score for much longer as you'll be using more than 20% of your credit limit which is going to be a negative factor.
Your original plan will work out just fine, perhaps have a look on HotUKDeals for good monthly contracts?

Thanks all, I'll stick to the original plan then. It's not an expensive phone (well £150 ish isn't nowdays I don't think?) so will just be about £5 per month.

Ah, is it just a phone you want (not a mobile contract)?
If so try eBay for some bargains. Try Looking for the latest model online, and then look on eBay for the previous model for a bargain.

Your "score" doesn't even exist. No one sees it but you, it's just a marketing tool set up by the credit referencing agencies. So it going up or down doesn't matter one jot.