SIM Free or Pay Monthly Contract Phones?

When purchasing a new phone, it can be hard to decide whether to buy SIM free or contract. Both options have fabulous advantages, but each one comes with their share of disadvantages too. To help you figure out whether you want a SIM free or contract phone, we’ve laid out the pros and cons of both.

SIM Free Phones

A SIM free deal is when you purchase your phone outright without the accompanying SIM card. With this type of deal, you pay the full cost for your phone up front, and shop around for a SIM card/network deal separately.

There a number of SIM free benefits, including:

• They can be cheaper in the long term, despite the substantial upfront cost.
• They’re great for commitment-phobes as SIM only deals tend to be shorter than pay monthly contract deals.
• You can choose whichever service provider you like, enabling you to shop around for the best SIM only network deals.
• They are perfect for going abroad as you can swap out your SIM card for one available in the country you are visiting.
• You can take total control of your spending through Pay as You Go.
• Unlocked phones have higher resale value.
• There are no network locked features.
• There is no network branding on the phone, leading to a more aesthetically pleasing handset.
• You can change your phone whenever you like.
• You can change your network provider whenever you like.
• They are perfect for going abroad as you can swap out your SIM card for one available in the country you are visiting.
• You may not have to go through a meticulous credit check.

However, there are some negatives to SIM free phones, including:

• Initial cost can be high as you will be paying the full upfront cost of the phone.
• You may miss out on certain network offers, freebies and perks.

Pay Monthly Contract Phones

A pay monthly contract is when you purchase a phone with a connected SIM that allows you to call, text and use data services for a pre-arranged cost over a duration of time, usually 24 months, To make it more affordable. You buy through a network which the phone is locked to. There are substantial benefits to this approach:

• It allows you to purchase the latest phones in an affordable and budget-friendly manner, as you don’t have to shell out the total cost at once.
• You can access network perks like free subscriptions and discount codes.
• You can access benefits such as cashback amounts to bring monthly costs down.
• Paying in a timely manner can build a good credit score which is handy in situations such as applying for homes.
• Some mobile contracts offer unlimited data, great for those always on the go.

However, there are a few disadvantages to a pay monthly contract such as:

• A cancellation fee for switching providers.
• High charges for exceeding your monthly allowance of minutes, texts or data.

We hope we’ve helped make the decision of a SIM free vs contract phone a little easier for you. Whichever you choose, Fonehouse has a range of awesome deals on both SIM free and pay monthly contract phones, so you can be sure you’ll find a handset you love.