Contract Phones: What You Need to Know

If you want a new handset and you want to save money on your phone bill in the long run, getting a contract phone may be the best option for your needs and budget. With the right phone contract, you can enjoy more affordable rates on your phone services as opposed to regular rates with a Pay As You Go Deal. But before you get too excited and apply for a contract phone deal, here’s everything you need to know about the product.

What is a contract phone?

A contract phone is a type of phone deal where the customer agrees to pay a fixed monthly fee for a handset and bundle plan combo. As customer, you get to choose a new handset from a selection of popular brands including Apple, Samsung, HTC, LG and more. In addition, you also get to choose a bundle plan that is perfectly suited with your monthly phone service needs. Granted that you picked the right deal to sign up for, you’ll be able to enjoy a variety of advantages as detailed below.

What are the advantages of a contract phone?

Regardless of what other experts say about contract phones, the phone deal has a few advantages that make it a better choice than other types of phone days including:

  • Handsetchoice - One of the key advantages for contract phones is the fact that you can choose your own handset. If you’ve been eyeing the latest high-end model from your favorite brand but can’t buy it upfront, getting a contract phone deal makes it possible. If you have good credit, you can generally choose any handset you want.
  • Bundle choice - Another great advantage with contract phone deals is the variety of bundle plans available. Whether you’re a light, average or heavy mobile phone user, there’s always a bundle plan well suited for your monthly needs.
  • Phone bill savings - Provided that you chose the right bundle plan, great savings await you in the long run. You’ll be able to enjoy cheaper rates on your call, text and data services with the right bundle plan. For more tips on how to save on your phone bill, click here.
  • Freebies, promotions, etc. - As a contract phone subscriber, you’ll be eligible for exclusive promotions, incentives, freebies and more, which you won’t be able to avail otherwise if you’re not a contract phone subscriber.

What are the disadvantages of a contract phone?

Unfortunately, it’s not all advantages with contract phones. There are also a few drawbacks you need to take into consideration before signing any deal. Here are some disadvantages to keep in mind:

  • Lengthy contract - A typical contract phone plan lasts for 24 months, which is pretty lengthy considering the rate of new phone releases nowadays. Your new handset now has also downgraded in value but you’re still paying a hefty monthly fee.
  • Expensive - Contract phones can be quite expensive as well especially if you picked the wrong bundle plan. Missed and delayed payments can also lead to a heftier monthly fee because of hidden fees and additional charges.

Should you apply for a contract phone?

Considering the advantages and disadvantages, the choice to apply for a contract phone plan boils down to preference, budget and needs. So long as your contract plan meets both your needs and budget, going this route shouldn’t be a problem. Just commit to paying your fixed monthly fee on each month and you’re sure to fully maximize the best advantages a contract phone deal can offer.