Mobile phones with upfront costs

A lot of mobile phone deals come with upfront costs – why?

That is a good question. Why would you pay an upfront cost when you don’t have to? Well, there is often a good reason to pay an upfront cost on a deal:

Upfront costs reduce your monthly payments

Most deals are “free from”, or £0 upfront from a certain monthly price point. If you would like to pay less you can pay an upfront cost when you take out your contract.

Upfront costs can be cheaper in the long run

The money you save through lower monthly costs often exceeds the initial upfront cost. For example, by paying £100 upfront to get access to a monthly cost that is £10 less per month, you save £240 on a 2 year contract.

Upfront costs make it easier to pass the network credit checks

A mobile phone contract is essentially a loan for the value of the phone you want. 

Everyone, regardless of their financial history, goes through the same Network credit checks. If you pay an upfront cost it proves to the Network that you are a better risk, because you are asking to “borrow” less money in total.

Sometimes there is no other option

Brand new phones don’t always get released with a “free”, or £0 upfront tariff. This usually applies to flagship models, so if you really want the latest and greatest phone you don’t have much choice.