When phone companies work on contracts, they leave no stone unturned to reap more from their clients. When it comes to guaranteed phone contracts, the returns are even higher because rarely do clients scrutinize the agreements. In this post we look at five hidden tricks that every client is looking for a guaranteed phone contract should be aware of.
Directing buyers to specific high-cost tariffs
Often, dealers shout and paste in large fonts the high number of minutes, bigger data, and more text messages that clients will get after selecting a specific deal. However, rarely do client scrutinize the plans to pick what they want. For example, if you only call 20 minutes daily, send 20 text messages but rarely go online, a contract offering more than 600 talk minutes, 600 text messages, and a lot of data will not be worth. This is because most of it will not be utilized. Here, you must negotiate only to get what you use for higher money value.
High APR on the original phone price
Often, people going for guaranteed mobile phones rarely interrogate the actual value of the deal they are getting into. This results to some jumping into deals that are very costly. For example, rarely do people compare the cash price of a specific model with what is being offered on the contract. The APR is usually very high and could reach 200% in some contracts. For example, if you acquire a phone worth £700 and by the end of the 18 months contract you will have paid £1500, the annual interest will be 114.2%. To keep this cost low, it is important to consider going for shorter contracts and raising some deposits. You can also select a low-cost mobile phone.
Penalties on early repayment
As clients think about the sense of style that will come with the new smartphone on the contract, the phone company is counting on regular use to reap more. Therefore, the longer you stay during and after the contract, the better it is for the company. For example, the company will charge you more for exceeding the agreed monthly plan. It is because of this focus that many companies attach stiff penalties to keep you from clearing the contract early. If you take an 18 months contract, paying it within 12 months will attract very stiff penalties.
Tying clients to specific carriers
The phone you are acquiring on a contract will no doubt be locked to the specific carrier. While the expectation is that the carrier will release the phone after the contract, many companies rarely do it. They attach strict conditions that discourage clients from shifting carriers. For example, some companies indicate that you need to make a 90 days’ notice before the process of unlocking the phone can commence. Even after three months, you will still be required to observe other rules before being let off.
It is very crucial to be careful by looking at these tricks when looking for a phone contract in order to pay less and enjoy higher value for money.