The Ultimate Guide to Phone Contracts


Phone contracts can be pretty costly especially if you picked the wrong phone plan to meet your needs. If you don’t want to overspend on your phone bill, it pays to thoroughly understand how phone contracts work. Here’s your ultimate guide to phone contracts to help you make the right decision:

What are phone contracts?

Phone contracts, as the name suggests, are phone deals that require you to pay a fixed monthly fee for the duration of the contract. Typical phone contracts in the UK last for 18 months or 24 months.

With a phone contract, you get to choose a handset plus a phone bundle. Handset selection if you have good credit is more diverse and often includes the latest phone releases available in the market. If you have bad credit, however, handset selection may be limited to cheaper and older handsets. Either way, you are free to choose your handset along with a phone bundle to meet your call, text and data needs.

Fixed monthly fees for phone contracts will depend on your handset choice and phone bundle. This means that the more expensive the handset you choose, the more costly your fixed monthly fee will be. The same is true with your phone bundle. The more generous your allowances for call, text and data are, the more expensive your monthly bill will be.

Who can apply for a phone contracts?

Anyone who is of legal age and a UK resident is eligible to apply for a phone contract. Most providers also require applicants to have good credit. It would also help to prepare the necessary documents beforehand to expedite the processing. You’ll need to provide proof of identification, proof of income and billing address. Some providers may also require you to provide bank details for the direct debit deduction for the monthly repayments.

If you have bad credit and you want to apply for a phone contact, chances of disapproval is very high. You may be better off sticking with Sim only deals or PAYG deals. You may also want to check guaranteed mobile phone contracts specifically offered for people with bad credit issues.

What are the advantages of getting a phone contract?

When you choose the right phone contract plan, it can be very advantageous in a number of ways. There’s the fact that you get to choose your own handset. If you have good credit, it will be easy to own the latest handset. You don’t need to pay for it upfront but you get it essentially for free with the right phone contract plan.

With phone contracts, you also get cheaper rates on call, text and data services. If you’re a heavy mobile user, getting a phone contract makes perfect sense at least financially and in the long run. You’ll just need to pick the right phone bundle that matches your monthly needs to ensure huge savings on your phone bill. To know more on how to save on your phone bill, PC World has valuable tips for you.

How do you make sure you pick the right plan?

With phone contracts, the most common dilemma customers face is the confusion when it comes to picking the right plan. If you don’t want to end up spending more than what you are using and paying more than what you should, it is very important to have an accurate estimate of your monthly phone service needs before signing any deal. Start by assessing your needs then shop around for the perfect deal that suit those needs to a tee.