Understanding mobile financing payment plans

With new devices costing tons of money, is it smart to finance your own smartphone purchase? Buying that new shiny iPhone can prove to be very difficult. However, you need not worry as you can still get yourself a wonderful phone without straining your finances. All you have to do is to sign up for a mobile plan as an alternative to paying outright for a phone. There are many paying plans that carriers offer, most of which are simple with a small deposit at the start. But, some providers have more complicated instalment options. That’s why this article is meant to give you an easy to understand overview so that you can be able to choose a plan that works best for you.

$0 dollars down instalments plan

This plan is simple and most common among most carriers. If you sign up for this plan, you will not be required to pay any small deposit upfront only if you have good credit score. Otherwise, if your credit score is not pleasant, you will have to pay a small deposit which varies from carrier to carrier. In either case, you will follow up with small but equal monthly instalments over the next 24 months. It is important to note that this plan is a standard payment and might be a requirement for other payment plans. For instance, you might be required to pay a down payment before signing in for an early upgrade plan. Ensure you compare as many carriers as possible so you can get the best deal there is.


Early upgrades

If you plan to upgrade your phone, then you should choose the early upgrade payment option. Remember, every carrier operates differently and their rates and terms of payments might vary. Therefore, ensure you consult with your provider before signing the contract. However, most early upgrades plans are simple and will allow you to pay monthly instalments and even upgrade your device before your current contract is up. But the phone must be in perfect condition before you’re allowed to upgrade. You’ll also not technically own the next handset until all payments are cleared.


With early upgrade plans, if you choose to pay off your phone early, you will also have to clear all the remaining balance in one instalment. However, you need not worry, as you can simply talk with your provider and come up with a plan that works for you on the basis of loyalty. After all, your provider is there to serve you. You can also choose to keep your old phone, clear the payments over the remaining months and the phone will be yours for keeps.


Lease plans

Just like other payment plans, mobile lease financing plans vary from one provider to another. It is up to you to choose one that will perfectly suit your needs. Most carriers will provide a lease service only on selected high-end smartphones. Therefore, do not forget to consult your provider on whether the handset you want to lease is in that list. Lease plans are cheaper compared to zero instalments and early upgrade plans, perhaps that’s what makes them a favourite of many. However, you should know that you will not own your phone at the end of your lease agreement. Rather you will be required to return the phone if you wish to terminate the contract or renew the contract in order to keep using the phone.