Mobile phone contracts aren’t new. They’ve been around since 1985, when Vodafone and Cellnet launched their networks and the first mobile telephone call was made.
In the past 40 years, mobile phones and contracts have evolved massively, and these days, having a mobile or smartphone isn’t just commonplace; it’s essential for many activities in life.
But your options are not just contracts; you can choose from monthly SIM-only deals or pay-as-you-go mobile SIMs to manage costs. Taking out a new phone contract, however, remains one of the most popular ways to get a new phone, especially for those who like to upgrade regularly.
But with other and arguably cheaper options, why do people still take out phone contracts?
Essentially, phone contracts allow you to obtain the latest handset without a hefty upfront cost or a smaller initial payment when you sign the contract, rather than having to buy it outright.
For this privilege, you pay a monthly fee to the network provider to pay off the device and your call and data usage.
It goes without saying that you will be paying considerably more for a mobile phone contract than a pay-as-you-go SIM card or a pay-monthly SIM to accommodate the cost of the handset you choose.
With the multitude of options available, it’s crucial to fully understand what taking on a new mobile phone contract means. This knowledge will not only help you get the phone you want and need but also ensure you get the best deal possible, empowering you in your decision-making process.
This post will discuss some tips that can help you when it comes time to take out a new contract or upgrade your device to a newer model at a more affordable cost.
Know What You Need
Before you even browse the offers, you need to understand what you need from your contract because it’s about more than just the phone itself.
Do you need unlimited data usage, free calls, or international calling included in your plan?
Or do you want to take advantage of offers such as a free watch, headphones, accessories, or gaming devices, for example? Certain devices and contracts can often come with amazing freebies. For instance, some contracts offer a free smartwatch or a pair of high-quality headphones.
Pinpoint your necessities from your mobile phone contract and only look for deals that cover all of this or as much as possible.
Understand Contract Lengths
Contracts typically run for 12, 18, or 24-month terms and, in some cases, 36 months. And you need to understand how long you want to be tied into the contract for, and what the implications are of choosing a certain length of contract.
For example, if you prefer to upgrade your phone frequently, a 12-month contract might suit you better. But it’s worth bearing in mind that the longer the contract, the lower the monthly payment or upfront cost you will pay, but the more burdensome the contract might feel.
Phones
Now, it’s likely you already have a device in mind you want. Be it the newest iPhone or Google device. Whatever you want, pinpoint the device or even brand to help you limit your search and make it more likely to find the right one.
Cost
It’s really important you understand how much you can comfortably afford to pay each month. While a brand new, shiny, latest model phone can be extremely enticing, it might be slightly out of your price range. You should never overextend yourself simply to get the latest devices, and don’t be tempted to sign up for a contract that you might not be able to afford down the line or comfortably afford now.
Coverage and Networks
Just as important as the other points is the coverage you get in your area. Some providers have extensive coverage, while others have block spots around the country and limited service. Understand the coverage in the area you live in or will be frequently using the phone, so you can ensure you get the best coverage. This can and probably will rule out some networks and providers.
In addition, check out the trust ratings and reviews of different providers online. Are they great at resolving issues? Do people frequently experience billing issues or payment problems, or is the customer service below the standard you want or expect? This can help you rule out companies that might not work for you.
Compare Prices
Before you click buy it now on your next mobile phone contract, it’s really important that you perform comprehensive searches to help you find the right deal. You should compare cheap phone deals to find the right deals or open the floor up to different offers that might be enticing to you that you hadn’t already considered. For example, changing the model can unlock better prices and special offers, such as freebies, that can make the contract a better value.
Upgrades
One factor that can be easy to overlook is the upgrade terms. Most contracts allow people to upgrade at certain points in their contract. When this depends on the cost and duration of the contract and the device you choose, sometimes you might be able to upgrade if you pay an additional fee to unlock this feature, or you have to wait until a certain point in the contract. This is really important if you’re choosing a longer term contract, so you can understand when you can potentially upgrade if you want to.
Do You Need It?
Phone contracts aren’t essential for getting online and staying connected. If you currently have a contract and are coming to the end of it, do you really need to upgrade? If you like the phone you have and don’t need a new one, is it worth choosing a pay-per-month SIM or pay-as-you-go option to help save you money?
Are you opting for an extensive contract to keep up with others and for status, or do you need a phone that can handle your lifestyle? If you work entirely online or are an influencer, for example, and you need the features of a newer device, go ahead. But take a minute to understand what you are signing up for, and you aren’t committing to a mobile phone contract for all the wrong reasons.
