Comparing the Three Types of Phone Deals

Before you can know which type of phone deal is perfect for your needs, you need to start from the basic. In the UK, there are three main types of phone deals offered by most if not all providers. Each type has pros and cons you need to weigh to know which one is best for your needs and budget. To help you understand your options better, below are quick overviews of each type:

  • Pay monthly contracts
  • The most popular option for majority of users in the UK is pay monthly contracts. As the name suggests, this is the type that lets you choose a handset on top of your phone bundle as part of your contract plan. With this type, you will be required to pay a fixed monthly fee for the next 12, 18 or 24 months depending on your contract term.

    Pay monthly contracts are generally ideal for people who want the latest handset but can't pay for it upfront. If you have bad credit, however, you may have a hard time getting approved for one.

  • Sim only contracts
  • More accessible and less expensive than pay monthly contracts are Sim-only contracts. These types of deals offer only include the Sim card and without the handset thereby lowering the fixed monthly cost significantly. You will still avail the same affordable rates on your call, text and data services but you need to bring your own phone to get this type of contract.

    Sim only contracts are ideal for people who already own a handset but want only the phone services from a particular carrier. People with bad credit also have more chances getting approved for this type of contract than pay monthly contracts.

  • Pay as you go
  • Getting hooked to a lengthy contract is not always the ideal set-up for everyone. If you don't want the pay monthly contract, a good alternative is pay as you go or PAYG. With PAYG, you need to top up your phone with credit in advance before you can use the call, text and data services. This mean more control for users seeing that you only spend money whenever needed.

    Pay as you go contracts are generally recommended for people who are light users and those who don’t want the liability of a lengthy contract.