Taking out a monthly phone contract vs. buying a mobile phone on finance


If you are on the market shopping for a mobile phone and don’t have the required finances to pay upfront, chances are that you are considering taking out a monthly phone contract or buying a mobile phone on finance. Buying a mobile phone on finance is the best option especially if you have bad credit and have been refused a phone contract as a result. It also gives you flexibility in the sense that you can foot the cost of the phone over a set period of time giving you an opportunity to effectively plan and budget for your finances.

Conversely, it also accords you an opportunity to buy now and pay later. This is a situation where you get access to a mobile phone but pay for it at a determined later date. This could be after a 3 month, six month or 12 month period. It is important that you consider a number of things before you take out a monthly phone contract or a mobile phone on finance.

Buying a mobile phone on finance

Buying a mobile phone on finance does not mean that you are restricted from buying a phone of your choice. You actually get the opportunity to purchase a mobile phone from leading world manufacturers. You get an opportunity to own phones from leading brands such as Nokia, HTC, Samsung, Sony, Apple just to mention but a few. So long as you have been accepted for a credit account, majority of UK online retailers are more than willing to grant you access to the latest technological pieces of wonder boasting of the best features in mobile technology. Once you have been accepted for a credit account, you are at liberty to make payments for your phone of choice over a period of time.

Once you have a credit account with given retailer or provider, you will get a monthly statement detailing what you have purchased and how you should proceed with making repayments. Simply put, there are a number of repayment options at your disposal. You can choose to make payments via your mobile phone or simply log into your credit account online and effect payment of whatever amount is due for the month. If this is not an option for you, the good news is that there are a number of UK online retailers with physical stores or branches on the high street where you can physically make your repayments when due. Consequently, you can go for the buy now pay later options where you simply get your preferred mobile phone on finance but simply pay for it in full at a stated future date.

Monthly phone contract

The biggest advantage about buying a phone using a monthly phone contract is that you not only get access to the phone but also a number of benefits such as free texts, a predetermined number of minutes and data bundles monthly throughout the period of your contract. you get to receive a bill every month outlining or detailing whatever amount of money you’ve spend outside the scope of your monthly allowance. The downside is that most UK providers require that you have a good credit history before you can be approved for a monthly phone contract. However, with the popularity of no credit check mobile phones, bad credit mobile phones and guaranteed mobile phones, this shouldn’t be a problem.

To sum it up, while getting approved for a monthly phone contract might be a tall order due to the credit score requirements, applying for a mobile phone on finance might be a better option. The tricky part is that you will still have to look for a SIM card. However, with many SIM only contracts offered by many UK providers, this need not be a problem!