Last Updated on November 4, 2021 by Melissa S.

In today’s modern world, mobile phones have become an essential part of life. However, when it comes to finding the right phone plan, it can be confusing when there are four main types to choose from; monthly contracts, SIM-only deals, prepaid contracts, and pay as you go. In this article, we’ll help you understand the different types of mobile phone plans so that you can make the best choice and find the perfect contract for you.

 

Monthly Contracts

 

Monthly contracts require you to sign up for a specific period of time and are typically between 12 and 24 months long. This type of plan is best suited to people who have high usage for texts, data, or calls and usually comes with a handset included in the deal. If you want good quality devices without having to spend too much upfront, monthly contracts are the ideal choice for you. As network providers often buy the handsets they offer with monthly contracts in bulk from manufacturers; you can usually expect to reap the rewards through discounted phones which you couldn’t get for the same price if you were to buy an unlocked handset on its own. 

 

However, when it comes to phone contracts, many people are unsure of what the best deals are and often worry about being denied following a credit check. Finding the right deal can be challenging as there are many handsets and plans to choose from. If you are unsure if your credit score will hold you back, you can also check if you are eligible for plans tailored for people with bad credit on sites like AcceptPhones.

 

SIM-Only Deals

 

SIM-only deals are a mobile phone plan that does not include a handset, and in order to use a SIM-only contract, you will need to own or buy a smartphone that is unlocked. SIM-only deals are a flexible type of plan as they are not tied to long-term contracts and don’t typically require any upfront payments as you are only paying for the calls, texts, and data.

 

Prepaid Contracts

 

Prepaid contracts are a popular way for people who struggle with going over their data amounts to keep control of the costs. Similar to pay as you go plans, with a prepaid plan, you won’t have any unfortunate surprises when your bill comes as you’re not tied into a long term contract, and everything has been paid for upfront. 

 

Pay As You Go

 

Pay as you go plans allow you to top up with credit when you need to use your phone, which is ideal for people who don’t use their smartphones often as it lets them avoid costly monthly fees for data, texts, and calls they won’t use. If you find you don’t use your mobile phone on a regular basis to make calls, text, or use data, then switching to a pay as you go plan could save you money. Although, it is always best to shop around and compare your usage to the other types of plans out there; for instance, if you are spending £10 to £15 per month on topping up your credit, you would probably be better off with a SIM-only deal. However, if you are using more than £15 per month, a monthly contract or a prepaid plan would better suit your needs.

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