PAYMENT PLANS

Phone Payment Plans: Understanding Your Options

There are a lot of different factors to consider when you’re trying to pick the right phone plan AND the right phone for you. moximobi, was created to make those decisions (and your life) simpler. This article explains the pros and cons of different phone purchase options, so you can make the right decision.

Understanding the differences between installment plans, leasing, and buying a phone outright, along with their pros and cons, is important. You need to know your options, if you want to make the best decision. Here's a quick breakdown:

Monthly Installment Plan

What is it? An installment plan allows you to pay for your phone over a set period, usually 24 to 36 months, with fixed monthly payments. This is often offered by carriers and sometimes includes interest.

Pros:

• Lower Upfront Cost: You don't have to pay the full price of the phone upfront.
• Upgrade Options: Some plans allow early upgrades to newer models.
• No Credit Check Required: Some carriers offer installment plans without a credit check.

Cons:

• Long-term Commitment: You don't have to pay the full price of the phone upfront.
• Possible Interest Charges: Some plans allow early upgrades to newer models.
• Locked to Carrier: The phone may be locked to the carrier until it’s paid off.

Leasing

What is it? Leasing a phone is similar to renting. You pay a monthly fee to use the phone and have the option to buy it at the end of the lease term or return it.

Pros:

• Flexibility to Upgrade: You can upgrade to a new phone model more frequently.
• Lower Monthly Payments: Lease payments can be lower than installment payments.
• No Long-term Commitment: You're not bound to own the phone, offering more flexibility.