SIM Only or Contract

Mobile phones are an essential part of our lives. Most people in the world cannot go for a few hours without actively using their phone. Unfortunately, owning and using a smartphone can be expensive. It is essential to consider the plans available so that you can decide on the most affordable and convenient options for you. Presently, there are two different plans available to mobile phone users. These are the mobile phone contracts and SIM only plans.

Mobile Phone Contracts

With this plan, you will have to choose a handset and the terms of your contract. The payments in these contracts run for a period, and you will have to pay a certain amount of money every month until the end of the plan. Usually, these period are less than 24 months. The bill will include the cost of the handset.

What Are The Benefits Of The Mobile Phone Contract?

One of the biggest advantages of the mobile phone contract is that you will get to pay for your handset on a monthly basis. The manageable payments will allow you to get the latest smartphone on the market at any time. Here are other notable advantages of the mobile phone contract:

  • • It is highly convenient. With this contract, you will not have to top up your credit at any time, even if you go over your monthly allowance.
  • • Often, there are extra gifts in the contract deal. The line of the gifts will vary depending on the handset you get. Some of these gifts include free headsets and access to digital music services.
  • • You will get to choose a high-end smartphone at a manageable cost.

What Are The Cons Of The Mobile Phone Contract?

  • • If you have a poor credit history, it can be hard for you to land a suitable mobile phone contract.
  • • You might be paying for talk time and messages that you will never use. It is worth noting that unused minutes from one month may not be carried forward to the next.
  • • You must pay the pre-determined amount of money every month for the entire period of the contract. This means you cannot cancel the contract even if you find a cheaper deal elsewhere. Also, if your money is tied and you have other more important expenses, you cannot opt out of the contract.
  • • Although you will not get cut off when you reach your allowance limit, the extra charges will be very high.

SIM Only Plan

There are two types of SIM only plans: the monthly package and the pay as you go plan. In the first plan, you will have to pay for your mobile phone needs on a monthly basis, while in the second, you only need to buy your package when you need it. SIM only plans do not come with a handset like the mobile phone contracts- you have to buy your own.

What Are The Features Of The Monthly Pay SIM Only Deals?

  • • This plan is only available on standard, nano, and micro SIMs.
  • • If you don’t pass the credit check, you have to pay with a direct debit.
  • • You can end the deal at any time as long as you give a 30 days’ notice.
  • • You can choose to get a 12-month contract instead of a single month.
  • • The SIM card is only valid for phones that have not been locked to a specific network.

What Are The Advantages Of The Monthly SIM Card Deal?

  • • You will pay directly using your debit card meaning it is hassle free.
  • • It is a good plan if you have previously failed credit checks.

What Are the Benefits of Using the Pay as You Go Plan?

  • • You can switch to a different plan on any day.
  • • You can stick to your old phone.
  • • There are no credit card checks.

The pay as you go plan has certain disadvantages as well:

  • • At the end of the day, the calling and texting charges will be higher than the average cost of other plans.
  • • In case you run out of credit, you cannot make a call, send a text or access the internet.

SIM only deals and contract phones have their pros and cons. You should consider your budget and mobile services needs when choosing your preferred service.