Choosing a Mobile Phone - 3/8

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Perhaps the most important factor in deciding which mobile phone is best for you is how often you are likely to use your phone. There are various mobile phone offers available with varying tariffs to suit your needs.

There are three main ways to pay with each method offering you a choice of tariffs and each has advantages and disadvantages. These are:

Pay as you go

  • You pay before making your calls with a top-up card/voucher or by credit/debit card.
  • No credit checks and no minimum contract.
  • No monthly contract.
  • You pay for what you need but call charges are generally higher than contract mobile phones.
  • Some providers could allow you to pay by direct debit and some mobile phone companies offer rates that get cheaper with more use.
  • Some pay-as-you-go deals have monthly line rental to pay or top-ups that only last for the duration of a month.

Monthly Contract

  • A contract mobile phone – minimum contract period is usually 12-18months.
  • You are billed for calls and monthly subscriptions.
  • You usually must pass a credit check and agree to pay by monthly direct debit.
  • Call charges are generally cheaper than pay-as-you-go.
  • Wider choice of services and free handsets.
  • You usually get an allowance of minutes, text messages, etc, included in your monthly subscription.

No line rental

  • You are billed monthly to see where your money is going but you will not be charged monthly subscriptions.
  • Call charges similar to pay-as-you-go.

Generally, paying higher line rental will give you cheaper call charges and a better handset. Before you decide which tariff is right for you, check to see if you can change it at a later stage because your needs could change. You can’t cancel a 12 or 18month contract unless you pay the monthly subscription charges up to the end of the contract period.

When you look for the best mobile phone for you, bear in mind the subsidy – the higher the tariff, the bigger the subsidy. If you switch tariffs quickly the dealer may withdraw the subsidy and recover the loss from you.

In part four we take a look at the various mobile phone networks and manufacturers.