The Ultimate Guide to Phone Contracts

If youíre thinking of getting a phone contract, there are some things you need to know to ensure that youíre going to get the best end of the deal. While phone contracts offer a variety of advantages, itís not always the best option for everyone. In order to get the most value out of your contract plan, you need to make sure from the get go that itís well suited for your needs. To help guide you with your decision, here is your ultimate guide to phone contracts:

What is a phone contract?

A phone contract is currently the most popular phone deal preferred by majority of customers in the UK. It is also one of the easiest ways for subscribers to avail the latest handsets in the market without paying for the phone in full. If you want the latest handset release from your favorite brands, a phone contract lets you spread the cost of the phone allowing more people quick access to high-end handsets.

How does a phone contract work?

With a phone contract, there are two major key elements you need to carefully consider. One is the handset choice and the other is your phone bundle plan. If you have a good credit score, your handset choices are more varied and usually include the latest models. If you have a poor credit history, approval for your application is not going to be easy. You may apply for bad credit phones but the handset selection may be limited.

Other than the handset, your bundle plan is just as equally important. In fact, choosing the right plan is crucial if you donít want to end up overspending on your phone bill. Before you pick a deal, make sure youíve assessed your monthly usage for calls, text and data. With the estimate on hand, find a bundle plan that is tailored to meet your needs. This way, youíre sure that youíre paying exactly for what you need and what you are using.

How much does a phone cost?

The monthly cost of your phone contract will depend on your phone and bundle plan. If you opt for a more expensive phone then it follows that your monthly bill will also be higher. If you choose unlimited texts and calls with a generous data allowance then your bill will also be higher. If you have bad credit and you want to make sure your application gets approved then you need to aim for a lower monthly bill. This means opting for a cheaper handset and a less generous bundle plan. The trick is to find just the right balance with your contract plan to save money in the long run.

Should you apply for a phone contract?

Though preferred by many, phone contracts are not always recommended for everyone. If youíre not really a heavy mobile user and you donít need a new phone, you may be better off with a SIM only contract or with a Pay As You Go deal (PAYG). If youíre a heavy mobile user and plans to rely on your phone for everyday communication and Internet browsing then the right phone contract can save you a lot of money in the long run. If you donít know which type of phone deal is best for you, head over to Money Super Market for a detailed comparison between phone contracts and Pay As You Go