Pros and Cons of a Phone Contract

Do you want a new handset but don’t want to get stuck in a lengthy contract? If this is the case, prepaid or pay as you go plans may be the right choice for you. However, it is also worth noting that phone contracts have advantages that may translate to great savings in the long run.

If you’re unsure whether a phone contract is right for your or not, below are pros and cons to help you decide.

Phone Contract Pros

Handset - One of the top advantages of a phone contract is the fact that it allows you to choose a handset. If you want the latest iPhone or Samsung Galaxy, for example, you can avail the phone without having to break your budget. If you have a good credit score, you also get to choose from a wide selection of handset including many of the latest offers available in the market.

Cheaper rates - - With your call, text and data services offered in a bundle, the rates per minute are typically cheaper than regular rates. As long as you picked the right plan that meets your needs, you’ll be able to enjoy cheaper rates and hence increase your savings in the long run. For additional tips on how to save on your phone bill, head over to Telegraph UK.

Perks and other incentives - Another pro that convinces many consumers to go with a phone contract is the wide range of incentives offered to lure customers. Some providers, for example, offer free gifts to go along with a phone contract. These gifts may be a tablet, laptop, plasma TV and other electronic devices.

Phone Contract Cons

Lock in period - expensive - Phone contact can be very expensive too if you did not apply for the right plan. For example, if you keep on going beyond your allowance for call, text and data services, you’ll be paying for the excess usage at regular rates. The rates for data especially can rack up your regular fixed monthly fee if you’re not careful.

Credit check - Providers also run credit checks on subscribers applying for a phone contract. If you have bad credit, chances are high that you may be rejected for a phone contract. In this case, bad credit mobile phones come as handy alternatives. The handset selection, however, maybe limited to older models.

Is a Phone Contract for you?

By knowing the pros and cons of a phone contract, it should be easier for you to make the final decision. At the end of the day, it’s really all about choosing a plan that meets not only your needs but also your budget. And as long as you are saving money on your phone bill in the long haul, getting a phone contract makes perfect sense financially.