Bad Credit Mobile Phone Contracts vs Pay as You Go

There are two options you can choose from when buying a mobile phone in the United Kingdom. The first one is to sign up for a monthly pay mobile phone contract and the other is to go for a pay as you go plan. Both have their positive and negative sides that you have to weigh very carefully when choosing between them. Hopefully, this article will help you a little with your decision.

Monthly Pay Contracts

Advantages

Pay monthly mobile phone contracts are also called post-paid. With these, you have a certain monthly amount that you have to pay. The biggest advantage of this deal is that you will have coverage even if you leave your network service area. Also, many carriers offer extras with your contract, such as free gifts (like a case for your mobile phone), free SMS messages, free Internet data or free calls in the network.

Disadvantages

The monthly bill is fixed and you have to pay it even if you have been keeping your mobile phone off the whole time. Also, although the provider may accept you if you have bad credit, this is a trickery slope. You may find yourself unable to pay it the next month. Many people are not even qualified to get a long term mobile phone contract because of their credit history. Plus, if you default at any time on this contract, the credit agency will hear of it very soon from your provider.

Pay as You Go (PAYG)

Advantages

Pay as you go or PAYG deals are a popular option for getting a mobile phone among not just those who are unable to land a monthly contract due to their bad credit history. PAYG is also perfect for teenagers who are getting their very first mobile phone and their parents would like to teach them some responsibility. The advantage of pay as you go mobile phones over pay monthly ones is that there is no monthly bill. The user has a certain amount of credit he can use on his mobile device and is much better able to control his or her bill. Another advantage here is that you won't have to go through a credit rating check.

Disadvantages

However, PAYG plan is a good option only if you are not using your mobile that much. The credit you have on your phone will allow you to make a few calls and send some text messages, but you'll probably have it drained before you know it. You may even find yourself in a situation where you are in the middle of an important conversation and it gets cut off because you don't have any more credit on your phone. Also, if you want to browse the Internet occasionally, you will find that doing so with a PAYG phone is almost impossible. You can basically use a PAYG mobile device only for calling and texting, which kinda beats the purpose of having a mobile phone these days for most people. If your needs are extensive and want a phone contract, but are having credit issues, you can apply for bad credit mobile phones instead from ezphone.co.uk.

Okay, as you can see, both pay monthly and PAYG mobile phones have their advantages and disadvantages, but the scales still slightly favour monthly contracts. Of course, it's all a matter of personal preference in the end.