Pros and Cons of Phone Contracts

Pros and Cons of Phone Contracts
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Phone contracts are the more popular options than Pay As You Go and Sim only for good reasons. It comes with a slew of advantages that are practically irresistible for many consumers. But despite the advantages, did you also know that phone contracts have their fair share of cons?

Yes, phone contracts aren’t perfect and they’re also not the best choice for everyone.

To make sure if getting a phone contract is the best route to take, consider the pros and cons below before finalizing your decision.

The Pros

Among the many advantages of mobile phone contracts including the following:

1. Free handset

One of the biggest attractions of phone contracts is the fact that it practically comes with a free handset. When you sign-up for one, you get to choose your handset as well as the bundle on your phone services. The combination is certainly irresistible for the right users.

2. Cheaper rates

If you’re a heavy user who rely on your phone 24/7, getting a phone contract makes perfect sense. It’s cheaper than PAYG because it includes a bundle. In the end, not only will you get a new handset but you’ll also save on your phone bill.

3. More Choices and Packages

With more deals in the market more than ever, the choices are wide and varied. There are different types of packages to choose from and you can tailor it according to what you need for the month.

Say you’re a heavy texter but not much of a caller. You can opt for a package that offers unlimited texts, limited talk time and a generous data allotment.

4. Free Gifts, Extras and More

In addition to the three attractions above, providers are hell bent on winning customers over with more incentive offers. If you know where to look, you can avail of free gifts in the form of Plasma TVs, tablets, iPods, game console and laptops among other things.

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The Cons

With its advantages, you probably can’t wait to get a phone contract immediately. But hold for a little longer because below are disadvantages you should also consider.

1. Lock in Period

Choosing a contract means you are hooked to a fixed monthly fee for months (12, 18 or 24 months). When you sign up for a contract, this is indicative of your agreement to the lock-in period. You have to stick with you provider until the end if you don’t want the consequences.

2. Can Be Expensive

While phone contracts come with cheaper rates, it doesn’t always mean that it’s perfect for you. If you’re a light user and you opted for a contract, you may end up paying for services you’re not even using hence more expensive in the end.

3. Bad for Credit Score

Again, phone contracts subject you to fixed monthly fees for typically 24 months. In the event that you can’t keep up with payments due to certain circumstances, you are putting your credit score on the line. Delayed or nonpayment is always bad news for your credit rating.

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