Regular Mobile Contract vs. SIM Only

Congratulations on making up your mind to apply for a mobile contract. However, you might still be confused whether to get a regular contract phone or a SIM only deal. If that is the case, these are the guidelines that can help you with this major decision.

How Badly Do You Need a New Phone?

Sometimes, the decision between a regular contract and a SIM only deal comes down to whether or not you really need a new phone. Keep in mind that needing a new phone is different from just badly wanting one. It may not be an issue if you have good credit, because you can apply for a new contract phone easily, but circumstances are very different if your credit is far from perfect. Regardless, sometimes it’s wise to think about whether you would benefit from the upgrade, whether you are eligible or not.

How Bad Is Your Credit?

Some people may simply have insufficient credit history if they just started taking out new loans, while some may have badly damaged credit rating resulting from past late payments, charge-offs, or public records that could turn the odds against them. If you just have insufficient credit rating, the risk you pose is not as high as those with severely damaged credit, which means you may qualify for a phone contract with little to no deposit. But if you’re unsure and want to play safe, applying for a SIM only contract instead can give you a 99.9% guaranteed approval.

How Much Savings Can You Get?

It’s also worth checking out how much savings can you get with each deal before making up your mind. Besides, saving money is one of the most common reasons why people want to switch to postpaid. While SIM only contracts are typically associated with lower tariffs, the overall savings depend on the entire package.

How Long Can You Commit?

Lastly, you should consider carefully how long you can sustain the repayments, and more importantly how long are you willing to commit to the service. There are people who are fine with two-year contracts and finish off without any difficulty, while there are others who find the lock-in periods very inconvenient. Before you decide on signing up for the latest smartphone, think about whether you can commit to a long term contract. If you’re unsure and are fairly new to the mobile contract scene, then might as well test the waters with a SIM only plan first. These plans are more flexible and can be discontinued for as quick as 30 days.