Having the latest smartphone is considered prestigious. For many people, it is the sense of style and class that comes with owning the latest Sony Xperia, iPhone, or Samsung Galaxy that drives the desire to own them. The simplest way to get these top of range smartphones is entering into a contract with phone companies. The contracts involve committing to a monthly payment for 12-24 months when the debt is cleared completely.
Often, many people selecting guaranteed mobile phone contracts make mistakes that turn out to be very costly. In this post, we look at these mistakes so that you can avoid them at all cost.
Failing to take the phone contract as a conventional credit
For many people, a phone and conventional loan are two different things. However, it is this poor distinction that has made many err and fall into deeper financial troubles. After entering into an agreement with the respective phone company, the monthly repayment must be made faithfully. If you fail to remit within the agreed timeframe, a penalty is slapped on you, and a negative credit report goes to the reference agencies that further degrade your credit score.
Not comparing the contract with other offers
While it is true that a guaranteed mobile phone contract will help you own the best device out there, many rarely check on other options. Though you will get the latest iPhone, Samsung, or Sony Xperia, the main question is whether there is another option that can serve the same purpose at a lower cost. For example, if you can raise £400 as a deposit to get the latest Sony Xperia phone contract that will ultimately cost £1500, what are the available alternatives? Making sure to compare all the contracts guarantees you of getting better value for money.
Not interrogating the carrier carefully
Though the phone contract is handing you the handset of choice, it is important to understand that it is attached to a specific carrier. If you do not interrogate this carrier, the chances of working with a very expensive or poorly networked company are very high. Therefore, you should start by checking the best carriers and following the contracts offered by them.
Failing to assess the tariff you are jumping into
While smartphones are no doubt evolving rather fast, the baseline to phone contracts is the tariff that clients get into. If you jump into the wrong tariff, the chances are you will end up paying for services not utilized. For example, if your operations are mainly done online and text SMS, a tariff that offers a lot of talk time will be a waste of money. You must evaluate your communication needs and only go for the right tariff.
Not reading the end of contract terms and conditions
At the end of the contract, you should be able to shift carriers if the current one is undesirable. If you do not read the agreement carefully, the chances of getting stuck with an undesirable carrier will be very high. Check all the rules, regulations, and read through the company policy to know the requirements for shifting from one carrier to another.