What are the disadvantages of a Phone Contract?

Phone contracts may be more preferred by majority of users in the UK but it doesn’t mean that it’s the best option for everyone. If you want to make sure that your phone contract is in sync with both your budget and needs, knowing the potential disadvantages can help. Here are some of the cons you should consider before signing any deal:

Lengthy contract

Once you’re signed up for a phone contract, you’ll be stuck with one carrier for a long time. The typical contract length in the UK starts from 12 months and may last up to 24 months or 36 months. If you’re going after the latest handset, the ideal contract term is 24 months, which can be pretty lengthy. In the event that you want to switch to a different carrier because of better deal offer before the contract expires, you will need to pay hefty fees and charges for contract cancellation.

If you really want a contract phone, make sure that you’re comfortable with your carrier choice for the next 24 months. Otherwise, you may end up paying more in associated penalties and charges.

Bundle plans have limits

There are bundle plans that feature unlimited calls and texts, which are ideal if you’re a heavy mobile user. If you’re a moderate or light user, however, opting for a less generous bundle plan makes more sense. For a typical mobile phone user, bundle plans with limits seem like the right choice. But this can be a disadvantage too because there’s always the possibility that you might exceed your limit. For excess of calls, texts or data MB, you’ll have to pay the regular rate.

To avoid going beyond your bundle plan’s limits, you need to be extra vigilant by regularly monitoring your usage.

Costly with the wrong plan

Phone contracts can lead to great savings but only if you picked the right bundle plan. Conversely, you’ll end up spending more than you should if you picked the wrong plan. For example, choosing a plan with unlimited calls and texts may seem wise but it’s really not when you’re not really maximizing your services. You’ll be paying for services you’re not even using. If you get a plan too small for your needs, you’ll still pay more because of the additional charges after exceeding your bundle limits.

Hidden fees and other charges

Major carriers are also very tricky. Just because you were able to clinch a cheap deal from the start doesn’t mean the monthly fee will remain low over your contract term. Carriers can balloon up your monthly fee with hidden fees and extra charges you may not know about. There is also a wide assortment of penalties you may need to pay along the way. For example, if you decide to switch carriers before the contract up, you’ll be charged a steep penalty fee for getting out of the contract early. To avoid incurring unnecessary fees, it’s best to read the fine print for more details before signing any contract deal.

Credit check requirement

Phone contract deals especially the ones that offer the latest handsets are difficult to avail if you have a poor credit history. Major carriers run credit checks on applicants. If you happen to have a history of CCJs or defaults, your application is likely to get rejected. You need to have a good credit first in order to enjoy the best advantages a phone contract can offer. If you have bad credit and you need a phone contract, your handset options are often limited to older models and cheaper mobile phones.

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