With current advances in technology, smartphones have become part of our lives. They make our lives easier by allowing us to communicate, keep in touch with family and friends, use apps that make our lives easier, shop using them and even for browsing the internet for information. When it comes to choosing a mobile device, you will be presented with either the SIM-only plan or a phone contract plan. Both of these options have their advantages and disadvantages. This article looks at the difference between both types and offers advice on which is the best type for you to choose from.
SIM-Only Contracts
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As its name suggests, you will be in complete control of the choice of the SIM you will be using. This means you will only be required to purchase a mobile device and choose a SIM only plan that fits your needs. With the SIM-only plan, you may be presented with two types of deals. The first deal is the pay monthly SIM-Only plan. With this type, you subscribe to a monthly contract that typically lasts between a few weeks to months depending on the provider. This enables you to choose a package that suits your data, minutes and texts needs. A major advantage of this plan is that the monthly plans are manageable and you will not be bound by a long-term contract.
The other option you will be presented with is the pay as you go SIM-only plan. With this plan, you only pay for what you use and will not be bound by a fixed contract term. One advantage of this is that you can ditch your SIM plan and choose another if you are not satisfied with what you are getting. However, a disadvantage is that since you are paying as go, it may inconvenience you when you run out of credit but need to use your device.
Mobile Contracts
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With this plan, you receive a mobile device with a binding contract. This means that you cannot change your SIM to another provider. One of the main advantages of this plan is that you get a mobile device and the costs are spread over the duration of the contract, which makes it manageable to make payments. Most providers will also replace the gadgets of their customers after two years.
SIM-Only Vs Mobile Contract Comparison
Costs
Choosing which plan is best will depend on your needs. With the SIM-Only plan, you will find that you will be required to invest upfront in a smartphone. However, smartphone devices are expensive, and thus you will have to weigh whether you can afford to buy one right away. With the contract plan, you may not be required to pay anything upfront when signing up, or you may pay very little. However, you will be given a new smartphone which will be replaced after every two years. A major advantage of this plan is that it will be spread over the duration of the contract. This means you will enjoy the benefits of paying a manageable bill. When comparing the costs of a contract plan and a SIM-Only plan, you will be saving in the long-run if you use choose a SIM-Only plan. This is mostly because you only choose a plan that suits your needs and you will not bound by a contract. For example, if you are not heavily reliant on using data, you can choose a plan that suits your other needs such as texts and minutes. However, a disadvantage is that you will need to invest upfront in a smartphone, which may be inconvenient if you do not have the funds.
Flexibility
With a contract plan, you are bound by what you signed for. This means that if for example you rely heavily on data usage, you will bound by the amount of monthly data you signed up for in your contract. However, with the SIM-Only plan, you can customize your usage options to suit your needs.
The smartphone industry is always coming up with innovative products almost every year. This means that these new phones come with additional features to enhance the experience of the user. If you are using a contract plan, you will not have the flexibility of upgrading your phone whenever you want. On the other hand, with the SIM-only plan, you can invest in any smartphone that you like and at any time. In addition, a SIM-Only device means that when you relocate, you can choose another provider if the one you are using does not cover the area where you are. This is especially an advantage for those who travel a lot.
Credit Checks
One of the requirements for getting a contract plan is a credit check. This is to ensure the customer is credit worthy, and will thus be able to pay for the plan. An advantage of this is that you get a handset right away without paying when you sign up. However, you may not qualify for the contract plan if you are not credit worthy. On the other hand, a SIM-only plan does not require you to undergo rigorous credit check processes since you will be paying upfront.
Which one is best for me?
To answer this question, you will need to take into consideration how you use your phone. For many, the flexibility of choosing a provider with a better plan seems the best option. However, since you will be investing in a new phone, the initial cost of a SIM-only plan will be huge. Nonetheless, you will be making significant savings in the long term. On the other hand, a contract plan may seem as a better option if you do not have the funds to invest in a new phone. However, you will be bound by a contract, meaning you will not enjoy the flexibility afforded by choosing the SIM-only plan. Whichever plan you choose, it is important to take into consideration how you use your phone to ensure the plan you choose will work out for you in the long run.
