Contract vs. SIM Only vs. Pay As You Go

Contract vs. SIM Only vs. Pay As You Go

If you’re on the hunt for a new contract but unsure whether a handset or SIM-only deal is the best choice for you, our detailed guide is here to help.

Below we take a look at the differences and benefits of contract deals, SIM-only and Pay-As-You-Go, so you can determine the right course of action.

Which Network is Right For You?

At Mobiles.co.uk you can take your pick from our two networks. Both Vodafone and iD Mobile offer contracts on a variety of lengths, with a range of data options.

With a number of reliable network providers available, you can easily find the perfect tariff for you, regardless of your data requirements.

iD Mobile

iD Mobile offers handset on 24-month contracts, with big-data bundles on your choice of mobile phone. They also have great benefits available such as free data rollover and iD Roaming, so you can roam while on holiday.

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Vodafone

Vodafone also offers 24-month handset contracts. You can choose from a variety of deals depending on your budget. The cheapest option is a ‘Basic’ plan which simply provides calls, texts and data. Vodafone also offer Entertainment packages, with a choice of Amazon Prime or YouTube Premium.

You can enjoy further benefits with ‘VeryMe’ - a loyalty programme exclusively for Vodafone mobile customers packed with weekly treats, offers and discounts.

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Difference between contracts, SIM-only and PAYG

SIM-only – you only receive a SIM card. Great option for those wanting the flexibility of shorter agreements
Phone contracts - ideal for those staying up-to-date with the latest flagship devices. You’ll typically pay monthly on a 12 or 24-month contract
PAYG - you only pay for the data you use. This is then topped up with credit when needed

Advantages of contracts

Getting a phone – ordering a phone on a contract gets you the phone you want, sometimes without needing to pay an upfront cost
Spread the cost – contracts also enable you to pay for your phone over time, rather than in bulk

Things to consider with contracts

Tied to a network – buying a phone on a contract means you can’t switch your network until the contract is up
Changing handset – if you want to change your phone mid-contract, this can require an upgrade fee (unless you wait for your contract to expire)
Data limit – some contracts come with unlimited data, but if not, you’ll need to monitor how much data you’re using

Advantages of SIM-only

Can use your current phone – simply pop in your new SIM and away you go
Pair with a SIM free phoneSIM free phones and SIM-only deals are a great way to maximise flexibility, with less commitment than a contract
Value – a SIM-only plan can potentially save you money over time, particularly if you’re happy buying an older phone for less

Things to consider with SIM-only

Buying a phone outright – if you need to pick up a new phone as well as buy a SIM-only plan, this could be pricey (especially if you want a recent handset)
Might need to be unlocked – if your current phone is tied to a network, it might need unlocking before the SIM from your plan can be used

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Benefits of PAYG

No contract – because you only pay for what you need, there’s no contract or commitment to think about
Flexibility – you can switch providers whenever you like

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Things to consider with PAYG

Manual payments – PAYG requires you to manually top up your credit when needed
No phone – you also don’t receive a phone on PAYG, so this is a separate outlay you’ll need to consider

What are upfront costs?

When looking for a contract, the upfront cost is worth bearing in mind. When choosing the best value deal, tariffs with higher upfront costs often work out cheaper over the course of your agreement. This is because paying more upfront will reduce your monthly bills, as you have less to pay off towards the value of a handset.

So, next time you’re looking at a deal, you may want to choose the tariff with a higher upfront cost as it means you will likely pay less in the long run.

Those are the key differences between contract, SIM-only and PAYG phone deals. If you’re wondering how much data you’ll need for your plan, we have you covered.