Mobile phone financing checklist: how to choose the right phone and financing deal

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The approval rates for mobile phone financing are typically higher than other credit options; this is why many who have been denied contracts from phone networks opt for the monthly, weekly or even yearly payment. However, another major motivation for opting for the mobile phone financing option is the desire to have the latest in mobile phone technology. New handsets are released every year, and keeping up can be difficult and costly. Deciding whether one needs the latest mobile handset can help determine the direction one takes with their financing.


Just like any other purchase, even with mobile phone financing one of the biggest considerations remains the budget. Those who cannot afford the latest and have bad credit might want to opt for cheaper, basic models. Applying for a phone contract or financing will likely be unsuccessful in such conditions.


The latest handsets have attractive features and upgrades, but are they really necessary? Consumers should ask themselves how they intend to use the phones they purchase before committing to a financing deal. This is especially important considering the fact that phone prices tend to drop a few months after release. Most people use their phones for the basic texting and calling. For others the phone is the backbone of their lives, and they use it for checking emails, browsing, video chatting and playing games. Make sure to only pay for what is necessary. Manufacturers have also been immensely helpful and have realized that not all mobile phone users fall under one category. There are a variety of handset options available depending on one’s budget and needs.

The application process

The application process is fairly simple, especially when done online. However, there are two important factors to consider; the interest rates and penalties.

In most finance agreements, the price of the handset will be generally higher than the price value if the handset is purchased on credit. Generally, the longer the repayment period, the lower the installments. However, a longer period will also result in a higher total cost.

Many stores today add penalties in case of delayed or non-payment. Any missed payments of reminders attract penalties. The buy now, pay later finance schemes are often interest free. However, one will need to pay the balance fully before the deferred period ends. In most instances, if not paid in full, the agreement reverts to the standard interest rate credit agreement.

Online purchase

Financing has never been easier with the online application option. The entire process is straightforward and immediate. Most websites offer financing deals from all the major manufacturers: Samsung, Apple, Nokia, Sony, LG and HTC. Flexible schemes allow access to the latest range of smartphones even for those stretched budget wise.

The bottom line

Latest or not, consumers must remember that even mobile phone financing is about enabling the customer meet their needs within their budget. Mobile phone financing enables one to buy the latest with a simplistic step by step process, and many will find that the investment will be worth it in the end.