Cash or Contract? Pros and Cons When Buying a New Phone

Cash or Contract? Pros and Cons When Buying a New Phone

Deciding between a contract or cashing out isn’t a simple matter of whether you have the money or not. In some instances, it will be better to get a contract. In others, paying in cash will prove to be the better choice.

Here’s a list of pros and cons for your consideration.

Get with Contract

Telecoms will usually bundle their services with a new smartphone for subscribers. Agreeing to a contract means you can pay for the services and the device over the course of 12 or 24 months. These will come with a set amount of texts, calls and mobile data and special promos like lower international call rates, etc.

When buying a phone under a contract, the advantage will depend on what the telecom company is offering. Subscribers usually get lower-priced smartphones, rebates, cashbacks and free gifts. Sometimes mobile services offer a particular phone model for free if you get a higher-tier plan.

The downside is that you’ll be stuck for the duration of the plan with the mobile carrier. Switching will be an expensive option if you’re somehow dissatisfied with the cellular network’s performance.

Get with Cash

Buying a smartphone with cash can be done through several channels. It’s a simple way to upgrade your mobile without getting into any contract. Most people who don’t want the lock-up or additional hassles often choose to buy their phones in cash. Some sites, like offer the latest mobiles in installments for maximum convenience.

The advantage of buying a phone with cash is that you’re free to choose who you want to go with. Get a mobile plan that will fit your lifestyle- more data if you’re always on social media or the web, more calls for business purposes and roaming for overseas trips. You won’t be tied up and can switch at any time without worrying about breaking agreements.