Everything You Need to Know about Phone Contracts

Phone contracts are the most popular and preferred option by majority of mobile users in the UK and rightly so because of the advantages the phone deal offers. While popular, phone contracts, however, are not always the best choice for everyone. In fact, your chances of overspending on your phone bill are higher if you’re not careful with your option. A wrong phone contract plan can lead to higher monthly fees you can’t easily get out of because of the contract term. To avoid putting yourself at a disadvantage, here is everything you need to know about phone contracts.

What is a contract phone?

A contract phone is a type of phone deal where the customer gets to pick a mobile phone and a bundle plan. For many mobile users, the incentive of being able to choose your own phone is a lure they can’t refuse. In fact, the chief reason why consumers opt for a phone contract is because it lets them avail high-end handsets without paying for it upfront. For smart tips on how to choose a handset, Digital Trends is a good place to find all the information that you need.

Then there are also the bundle plan options that can save you a lot of money provided that you picked the right plan to meet your monthly usage.

How long does the contract term last?

Contract phones are available in 12, 24 or 36-month terms. The most popular and preferred option across UK is the 24-month phone contract deals. This means that you’ll be paying a monthly fee for the next 24 months. The fee will cover the cost of your phone and phone services. In the event that your usage exceeds the call, text or data allowance set by your bundle plan, you’ll have additional cost to pay for.

How much does a contract phone cost?

The cost of a contract phone varies from deal to deal. But in general, it can range from £10 to £35 or more. Your monthly fee will usually depend on two key factors, which are your handset choice and phone tariff. The more high-end your handset choice is, the more costly your monthly fee will be. The more generous your phone tariff is, the more costly your monthly fee will be. If you want a cheaper deal without sacrificing what you want, finding that balance between your handset choice and phone tariff is key.

Who are eligible to apply for a contract phone?

Anyone who lives in the UK and is at least 18 years old is eligible to apply for a contract phone. Ideally, the mobile user should have a good credit history in order to have access to a wider range of phone deals including the high-end handset offers. If you have a bad credit score, however, you may have a hard time getting approved for a contract phone. In this case, you may check alternative options such as Sim-only deals or bad credit phone deals.