Having a mobile might be a necessity for most of us, but that doesn’t mean we should pay over the odds for one. To help you keep the cost of your mobile phone down, here’s a quick look at what your options are, and what you can expect to pay.
What mobile phone deals are available?
The type of deal you choose will have a big impact on the cost of your mobile phone; there are three types of phone plan you can choose from:
Pay monthly mobile phone
Pay monthly deals bundle together a new handset, data, minutes and texts (your ‘airtime’). Plans typically tie you into a contract which can range from 12 to 36 months. You’ll pay a fixed amount each month for the length of your contract.
These packages are a good way to spread the cost of a brand-new phone, but the downside is that you’re committed to a contract for at least 12-months. You’ll also need to make sure you keep up with monthly payments or you could face late fees or have your contract cancelled.
SIM only plan
SIM plans only provide you with airtime. You can buy a SIM contract free for a month at a time, but they’re also available as rolling 30-day contracts or as 12-month plans.
Buying a SIM only plan gives you flexibility to switch at short notice and they can work out much cheaper compared to a pay-monthly contract. The downside is that they don’t come with a handset, so you’ll need one you’re still happy to use.
Pay-as-you-go (PAYG)
With a PAYG plan, you only buy the airtime you need as and when you need it (unlike a SIM plan where you buy data, minutes and texts in monthly bundles). You can buy a deal with or without a handset.
If you don’t use your phone very much, a PAYG can be the cheapest way to own a mobile. However, you’ll need to remember to top up your phone. It’s also important to know that the actual cost of your data, calls and texts could work out more expensive compared to a contract plan.
Will I need a credit check for a mobile phone?
This will depend on the cost of the mobile phone plan you choose. As a rule of thumb, the longer or more expensive the commitment, the more likely you are to need a credit check.
With that in mind, you can expect a credit check to be carried out for pay-monthly contract phones and SIM only deals with a 12-month contract. If you want a SIM deal with a shorter contract, you may need a credit check, but it’ll be up to the provider.
You won’t need a credit check for a PAYG plan as you’re paying for airtime upfront.
What’s the cheapest way to own a mobile phone?
You can keep the cost of mobile phones down by choosing a plan that suits your needs best, and by comparing offers from a range of providers. Points to think about include:
Whether or not you need a handset
We’re often taught that it’s better to buy something outright than use credit. But buying a new phone outright and then finding a SIM only plan to go with it isn’t always the most economical option. In fact, if you need a new handset, pay-monthly deals can actually give you better value for money, especially if providers are offering discounts and other incentives.
How much data you need
When it comes to data, it’s easy to assume more is good, but it’s not if you’re paying for data that you’ll never use. According to communications regulator Ofcom, the average person only uses 5.6GB of data each month. So, unless you’re on your phone a lot or carry out lots of data-heavy activities, unlimited data isn’t really a necessity.
It’s also worth looking for plans that let you roll over any unused data to the next month. If you have a family plan, some providers will also let you share unused data between you.
What your budget is
Pay-monthly contracts are all well and good, but you need to be confident that you’ll be able to pay your bills on time for the length of your contract. Repeatedly missing payments can damage your credit score and it could mean you’re refused credit in the future.
If your finances tend to be a little unpredictable, the safer option could be PAYG, or a SIM only deal that comes contract free or as a rolling monthly contract.
Search for low-cost mobile phone deals
Searching for a good value mobile phone deal shouldn’t be difficult. At Utility Warehouse, a value SIM with unlimited minutes and texts costs just £12 a month. If you’re a frequent phone user, that’s no problem either and you could enjoy unlimited data for £20 each month. What’s more, both plans come with unlimited minutes and texts, and you can also use your mobile in the EU as if you were at home. For more information, simply head to Utility Warehouse