Should you Choose a SIM Only or Mobile Phone Contract?

Should you Choose a SIM Only or Mobile Phone Contract?

Mobile phones have become an essential item in everyone’s pocket. When picking out a shiny new phone, there’s a lot of factors we need to take into account.

Make, model, design and features are one side of it, but there’s also a wide-range of choices when it comes to paying for it!

The main two options available are the SIM-only monthly deals, and a fixed monthly contract, with the handset included. Both of these come with negatives and positives attached.

So which is right one for you?

 Mobile Monthly Contract

With the monthly contracts, you agree a set price per month, which tends to include a fixed amount of data, texts and calls.

You’re then tied into the contract for a set period, usually ranging from 12 to 24 months.

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The main benefit of a monthly contract is that you avoid the initial cost of the handset itself. New models these days can cost a large sum of money, and opting for a contract usually means all, or at least part of the costs, are covered.

You’ll benefit massively from this option if you’re in the market for a new phone.
With the newer models costing as much as a new laptop, this can really help you avoid the original huge outlay. Many of the latest models are also available on a contract well before they’re available on a SIM-only deal.

If you’re making a lot of texts and calls, it’s very likely you’ll get a bigger allowance on these, compared to a SIM-only offer. So, if you’re one of many that are constantly glued to your phone, it’s a great option for all the Facebook addicts out there.

On the other hand, you’re locked into the contract from anything up to 24-months so if you’re always on the lookout for a new phone, make sure you know the terms and conditions regarding upgrades. Some companies offer an upgrade after just one year, so it’s always worth checking. The rate at which newer models are churned out nowadays means in two years your phone could be one of the worst on the market!

SIM-only Monthly Contract

If you’re not in the market for a new phone, the SIM-only monthly offers could be the one for you.

They’re similar to the monthly contracts in that you pay a monthly amount to receive a fixed amount of calls and texts, but with the SIM-only deal, there’s no phone included.

Because of this, the monthly price is often less; which means more money in your pocket, or you’ll benefit from better value when it comes to call time, texts and data.

Also, rather than being tied up for 12+ months, you will only need to give 30 days cancellation notice due to the fact you’ll be operating on a rolling contract. So if you don’t want to be locked in to a long-term contract; maybe your waiting for a certain handset to become available, SIM-only is a great flexible option.

You’ll also benefit from owning your own handset. If you do want to upgrade on a whim, you’ll be able to sell your old phone to offset the price of the new one. Even if you’ve paid off your contract phone, it’s likely that it’ll be locked to the network you bought it from, and SIM-only monthly deals give you the freedom of a completely unlocked phone.

Research, Research, Research

At the end of the day, only you know what works best for you. Just make sure to take a bit of time so you know;

  • The price per month
  • What’s included
  • How long you’re tied up for

    Good luck!