Which is right for me? SIM-only vs. Contract

By Unknown on 26/08/2020 16:44

The difference between Sim-Only and Contract is fairly simple. A ‘sim-only’ deal covers your mobile service but not your handset. This would mean that you would have to already own a handset or buy one separately to have a sim-only deal. Many people purchase their mobile phone outright, so this is the perfect way to pay per month at a reduced monthly price.

When taking out a contract, you’re bound to a certain amount of time at a monthly fee. This is typically 24 months but can vary from provider to provider. This will include a handset fee, a tariff fee and various optional tariffs.

Mobile Contract

Taking out a mobile contract is perfect for those who would like a more expensive handset. In some cases, you’re expected to pay an upfront cost but this will vary depending on the
provider. The costs are manageable due to being spread out and are easily tailored to suit your individual needs. Taking out a contract can sometimes be difficult if you have no or a poor credit score.

Many providers offer upgrade and optional trade-in services. This means that after the set contract is up, you can upgrade your device to a brand new contract and you will have the
choice of keeping your handset or trading it in for a discount. Many people choose to keep their handset as a backup phone, pass it down to their family or friends and sometimes sell it and make back a large amount of the money they’d spent over the contracted time.

You are set to the specific length of time, but if you want to terminate your contract early you can pay the remaining balance off. This is the only way (except for special circumstance) where you can leave early.

Sim-Only

This is a great way to get a contract if you have already purchased/been given a handset. Generally, sim-only deals are cheaper because you won’t gain interest, you have a flat rate price to pay each month and it is much lower than if you had a handset price to pay alongside it.

Due to paying monthly and not having a handset price, sim-only deals are less commitment and you won’t be locked into it for 24 months. Sim-only deals can be more flexible, meaning you can alter your tariff.

You will need to match your handsets provider with your deal so they’re compatible. If you have purchased an unlocked phone or intend on getting it unlocked before getting a sim-only deal, you will be able to use any compatible your handset.

There is also an option for ‘pay as you go’ - meaning you won’t have any commitment and will have to top-up each time you get low on minutes, data and texts or could be charged a fee.

Ultimately, you must choose what's right for your circumstance. Understandably it can be difficult to choose with both having so many pro’s and con’s, but we hope that we have helped create a clearer image for you to make your choice.

Head to our comparison section on our website to compare your options and start saving today.

Unknown

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