Mobile Phone Financing – Prepaid vs. Contract

Choosing the best mobile phone financing in the UK depends on what each provider offers. Each offer is complex and comparing them is not an easy task. If you are going to choose any deal from one of the best UK mobile phone providers, it would be wise to consider a number of factors. Your choice should depend on coverage – though it is safe to say that this becomes an important factor if you reside or intend to use the phone in a remote location.

Fees and Rates

Fees and rates should also inform your decision regarding whether to choose prepaid or contract. A proper understanding of the fees and rates remains one of the biggest challenges for UK consumers. This is because of the wide variety of plans and options that each UK operator provides. On the other hand, come up with questions that would give you a proper idea regarding the fees and rates worth paying. Such questions should include:

  1. How much will you use the mobile?
  2. When will you be calling?
  3. Where will you call often?
  4. How frequently will you use SMS?
  5. Will you make numerous short calls that last less than a minute each?
  6. How frequently will you travel with and use the phone abroad?

Greater Flexibility with PAYG

Prepaid plan allows you to enjoy greater flexibility because you pay as you go. With this plan, you are entitled to receive calls for several months – although this is dependent on each provider – without having to make any payment. For such a plan, buying top-up cards is the only way out when in need of more credit. The good news is that the top-up cards are easily available at petrol stations, newsagents and newsstands as well as from online sources.

Determine whether the prepaid plan is the best for you or not based on the following factors:

  • The cost of purchasing the SIM Card, which should come with a block of minutes
  • How much it costs to recharge the SIM Card
  • Connection fees – although some providers do not charge such fees, which is ideal for somebody who makes several short calls
  • The validity period for making and receiving calls

Benefits of the Contract

Signing a contract would also be worth pursuing when in need of mobile phone financing in the UK. With this plan, you only make payments at the end of the month, after usage. The beauty of contract plans is that they come with lower call rates. When purchasing new phones under the contract plan, you will enjoy much better deals as well. In some cases, you will be eligible for free new phones.

Finally, before choosing the contract plan, check the monthly fees that you will be paying. Check the minimum length of the contract, which should ordinarily be around 12 months. The cost of making calls per minute should also inform your decision on whether it is worth choosing contract over prepaid. The services that the provider has to offer should also inform your decision. Consider the fate of the unused minutes within your plan as well.