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 can get the latest iPhone, Samsung Galaxy, or Google Pixel smartphone at 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, choosing the perfect phone contract can be tough. Our guide should help you understand how to get exactly what you’re looking for in a mobile phone deal.
Compare all contract mobile phone deals at Uswitch now.
What exactly is a phone contract?
Having a phone contract means paying a single monthly fee for a fixed period of mobile phone service. 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.
Read our guide to pick the best phone contract that meets your needs.
Benefits of choosing a phone contract
Even with SIM only contracts on the rise, many people still choose to pay for their phone and service together. 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.
Here are some reasons customers prefer a phone with a contract.
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’s 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 and rolling 30-day contracts.
If you use more minutes or more data than your contract allows, you’ll still be charged extra, but most people find that they still get a cheaper mobile phone deal by opting for a mobile phone contract over a Pay As You Go phone.
Free gift promotions
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 continuous 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.
Downsides of getting a mobile contract
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.
The difference in cost over just a two-year period can already be hundreds of pounds. Since new smartphones can cost a hefty sum to buy outright, some people simply don’t have that much at any one time and prefer a monthly contract deal because they're able to spread their payments.
To get a better idea of what’s right for you, 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 poor credit as there’s no mobile phone involved in the deal.
For our guide on how to get a mobile phone with poor credit history, click here: mobile phone deals for bad credit.
