Quick Guide to Phone Contracts


If you’re in the market for a contract phone, it pays to do your research first. Considering the staggering amount of money overspent on contract phones as per recent studies, you don’t want to end up with the same fate as the majority of subscribers. If you want to get the most out of your contract phone deal, understanding how these deals work in the first place is a smart move. To help you along, here’s everything you need to know about phone contracts:

What are phone contracts?

Phone contracts are phone deals where the subscriber agrees to get tied up with a contract in exchange for a handset and bundle plan combo. With a phone contract, you are free to choose a handset including the latest releases from your favorite brand. In addition, you also get to choose a bundle plan you can tailor to meet your monthly needs perfectly. Once approved for a contract phone, you’ll be paying a predetermined fee monthly for the duration of your phone deal’s contract length.

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Who are phone contracts for?

Phone contracts are available for anyone who is of legal age and a UK resident with good credit. If you meet the requirements, approval is often instant and always guaranteed. But it’s a different story when you have a poor credit rating instead. In this case, you may need to consider other types of deals such as Pay As You Go or SIM only deals. You may also consider alternatives such as bad credit phones if you really a phone contract.

What are the advantages of a phone contract?

No matter the discouragements from many experts, majority of subscribers continue to apply for a phone contract for its slew of advantages. First and foremost is of course the allure of owning a free handset. When you want to be in possession of the latest piece of technology in the mobile phone world but lack the required upfront cash, the logical thing to do is to resort to a contract phone.

In addition, phone contracts also feature a phone bundle inclusive of calls, text messages and data bundle allowances, which practically translates to huge savings provided that you chose the right plan. As a phone contract subscriber, you also enjoy exclusive access to incentives, promotions and other freebies. To further hook customers, many providers in the UK are now offering free gifts as part of their phone deal offers.

What are the drawbacks with a phone contract?

While preferred by many, phone contracts also have a number of demerits. As often reiterated by experts, phone contracts lead many subscribers to overspend on their phone bill. This is especially true when subscribers are hooked to the wrong bundle plan. If your bundle plan does not meet your monthly phone service needs, you’ll be paying in excess for calls, text messages or data usage at their regular rates, which can be ultimately expensive in the long run.

There’s also the matter of getting tied up to a lengthy contract. The typical contract length in the UK is 24 months. That means 24 months of paying a fixed monthly fee for your phone and bundle plan service. If you know you can afford the monthly fee without hitch then you shouldn’t have any problems. Missing or delaying a payment, however, is dangerous for your phone bill. Because carriers are tricky and sneaky, you may end up with a hiked up phone bill because of hidden fees and related charges added to your monthly bill.