When it comes to getting a new mobile phone, the choices can seem overwhelming – there are so many options out there. How can you be sure you’re on the best one? Well you can’t, but you can optimise those chances by knowing what you need out of your tariff and shopping around for the best bargain. So consider these factors and decide which is your best bet – a contract or a pay as you go tariff?

- Budget vs. unrestricted calls Do you need to be certain of how much you’re spending every month? Or is it more important that you can make calls and send texts at anytime? If you need to know what you’re spending each month, then pay as you go is better, as you can’t spend more than the credit limit on the phone. With a contract phone, whilst you only know the cost of the tariff each month, not any additional call time charges, there are no limits, so you’re never left stranded by a lack of credit. Of course, if you don’t keep track of the calls you are making, you might be hit with a hefty bill at the end of the month. Still, some providers will allow you to set a credit limit on a contract phone. - Credit History Any mobile phone service provider will do a credit check before allowing a customer to buy into a contract. Great if you’ve got a good credit history, not so good if yours is poor. If that’s the case, you really don’t have a choice because you won’t be able to get a contract at all – pay as you go is your only option. - Freedom The downside of a contract phone is the fact that you’re locked into a contract for a specified amount of time, usually 12 or 18 months. So you need to be sure you’re on a tariff that’ll work for you, before signing up. The upside of this is that the networks will subsidise handsets, so you can get that swanky new handset for a vastly reduced rate (compared to the pay as you go one) or even for free. Check out Vodafone for example – the Sony Ericsson W595 is free on a pay monthly plan. The benefits of pay as you go are that you can switch with ease. However, you do have to include the price of a new handset – that W595 is £150 on a Vodafone pay as you go tariff. However or if you’re happy with your current phone, you can change your tariff for only the price of a sim card. View their online shop for more on mobile phones. Generally, if you’ve got more money to spend, and you’re a relatively heavy user of your mobile, you’ll be better off on a contract phone. However, if you value the freedom to be able to move around providers and know exactly what you’re spending, it might be worth sticking to a pay as you go deal.

 

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