Your cookie preferences

We use cookies and similar technologies. You can use the settings below to accept all cookies (which we recommend to give you the best experience) or to enable specific categories of cookies as explained below. Find out more by reading our Cookie Policy.

Select cookie preferences

Skip to main content

How to choose a mobile phone contract

There are several factors to consider when choosing a new phone contract, so let's take a look at them.
Ray Ali author headshot
Written by Ray Ali, Mobiles expert
Updated on 25 November 2024
Share
comparing smartphones choosing a smartphone

Contract mobile phones are one of the best ways to get a new handset with a great deal on your calls, texts and internet.

With a mobile contract, you could get the latest iPhone, Samsung Galaxy, Google Pixel or OnePlus smartphone for a much smaller initial cost than buying it outright. In fact, in many cases, there's no upfront fee to pay at all.

With so many good-value deals on phone contracts across all networks, it can be tough to choose a handset and contract combination. Our guide should help you understand how to get exactly what you are after in a contract mobile phone.

Compare all contract mobile phone deals at Uswitch now.

What are contract mobile phones?

Having a contract phone means paying a single monthly fee for a fixed period. Most mobile phone contracts are set at 12, 24, or 36 months and provide mobile customers with a handset and a monthly allowance of calls, data, and texts.

When opting for a contract, you simply choose a package of minutes, texts, and data that you think will best suit you, and you pay a fixed price for them every month.

The great thing about contract mobile phones is that you never have to think about topping up your mobile phone or worrying about running out of credit.

Read our guide to pick the best phone contract that meets your needs.

Why choose a contract phone?

Even with SIM only contracts on the rise, many people still choose to pay for their phone and service together.

Here are some reasons customers will benefit from a contract phone.

Free handset

For many people, a free handset is the main advantage of a monthly contract. Smartphones are available with almost every contract, and there is always a wide range of models to choose from.

However, if you want the latest mobile handset, it's worth bearing in mind that you may have to pay a one-off fee at the start of the contract when you sign up.

There are no hard and fast rules about this, but sometimes there is a price to pay for owning the newest mobile phone on the market.

Cheaper mobile phone bills

Mobile contracts usually offer more competitive deals on calls and texts than Pay As You Go deals.

Even though you will be charged for any calls and texts over those included in your contract, most people find that whatever network they are with, they still get a cheaper mobile phone deal by switching to a mobile phone contract from a Pay As You Go phone.

Contract phones with free gifts

Many mobile networks offer a range of extras and free gifts when you sign up for a contract mobile phone with them.

These could be hands-free headsets, accessories packs or even PlayStation or Xbox consoles. This is becoming less common today, though, and vouchers or cashback tend to be the norm.

Some carriers also offer rewards schemes or value-adding benefits, such as two-for-one cinema tickets and free Spotify subscriptions. Keep an eye out for contracts with free gifts on our contract deals comparison page.

Monthly contracts vs buying outright and going with a SIM only deal

The downside of monthly contracts is that over the length of the contract term, the total you pay out is much more than if you'd bought the phone outright and then signed up for a SIM only contract with the same allowance.

Our research shows the difference in cost over the two-year contract can be hundreds of pounds.

However, because new smartphones can cost £600-700 to buy outright, not many people have that sort of lump sum spare and prefer a monthly contract deal because they're able to spread their payments.

Not what you’re looking for? Check out all our mobile phone deals and offers instead.

You can also read our guide to the best mobile contracts for more information.

Contract phones with bad credit

There's a common misconception that you can get a mobile phone on contract without having a credit check. Mobile phone providers will check your credit score before accepting your application to make sure you'll be able to make the monthly payments.

You can take steps to improve your credit score if you find yourself turned down for the contract. Read all about how to improve your credit score on our partner site Money's guide.

One option open to you if you're looking for contract phones with bad credit is to get a low-end handset as providers see them as a lower risk if payments aren't made on time. SIM only contracts are also better for people with bad credit as there’s no mobile phone involved in the deal.

For more detailed information, read our guide: mobile phone deals for bad credit.

Read more...

Best iPhones 2024: Which iPhone should I buy?Unsure which iPhone you should buy? Uswitch has ranked the best iPhones available, includi ..
“Samsung’s premium line of handsets offers superb specs and features.”
Best Samsung Phones in 2024: Which Samsung phone should I buy?Are you a Samsung fan? The Android smartphone has a wide range of truly amazing smartphone ..
Switching from Android to iPhone guide
Switching from Android to iPhone - the complete guideMaking the leap from Android to an iPhone? We have a few easy steps that’ll make the trans ..