If you are getting a new phone, it is good to consider the types of offers you can get. Here are the Pros and Cons of Sim-Only Deals…

A lot of people would never consider SIM-only deals due to the misconceptions they have about them. Others may want to get that shiny new phone that comes with most plans, only to then be disappointed when they find out what they have been locked into. SIM-only deals have many things going for them, and depending on your mobile phone usage, they could be the best option for you. However, there are also cases when they might not be the best suited. Let’s take a look at some of the pros and cons of SIM-only deals.

Pro – No Credit Check

This might be the number one benefit for a lot of people. There might be contract deals out there that look good, but if you can’t qualify for them, SIM-only deals might be your only option. While not all SIM-only plans will allow you to sign up without a credit check, it is often the case with 1-month deals. Lebara SIM-only deals, for instance, do not require you to pass a credit check. And don’t think that because it’s SIM-only that it’s limited. Their SIM-only deals allow you to tether your data, share it with family, and any expense out of your plan will be capped at zero.

Con – No Free Phone

Let’s face it. The majority of people who get into plans do it for the free or discounted phone. There are also some cases where it could be a good deal if you don’t have £600 to spend on a new iPhone. With a contract plan, you get the chance to own a state-of-the-art phone with all the features you need. This alone could be enough to sway someone towards a fixed contract plan.

Pro – No Free Phone

On the other hand, going with a plan for the phone means that you’re going to be stuck with this phone and plan for a long time. This means that your phone could end up being outdated by the end of your contract. This is not only an issue when it comes to features, but also for security as there is a chance that the company stops releasing updates for this phone. With a SIM-only deal, you can get any phone that you want. It doesn’t matter if you picked it up for £50 on eBay; as long as it works with the carrier and network and it’s unlocked, you’re good to go.

We would also like to mention that free phones with contract plans are not really free. You will be paying for it over the course of a plan. So, it’s more like a loan. This can work for some people who want to diminish the hit on their finances, but know that you’re still going to pay. There’s also the chance that you have just come out of a contract plan and still have your old phone. If your phone still works for you, there is no point in switching to another long-term plan if you don’t want to be locked in. You can still use your old phone if you unlock it and chances are it will work just fine on the new network.

Con – The Terms Aren’t Always the Best

You must check the fine print on any SIM-only deal that you decide to go for. Some SIM-only deals last for a year, so you should check if and how you can get out of the deal if you want. You don’t want the inconveniences of a long-term contract without the benefits. You should also note that not all SIM-only deals will automatically cap your excess minutes or data. Some will have outrageous fees for going over, so it would be wise to overestimate how much you think you’re going to use to avoid bad surprises. Some will throttle your data once you reach a certain point. You should also know that some plans will advertise themselves as unlimited, but in reality, they have very high caps, so make sure that you know what they are even if it’s very unlikely that you’ll go over.

Pro – More Flexibility

Plans and deals change all the time. Maybe you’re using a lot of data and notice a great unlimited deal that is affordable. If you’ve just locked into a contract, you might be stuck with it for years and regret your decision. With a SIM-only deal, you can jump from carrier to carrier and take advantage of the number of choices available on the market. Each SIM-only network will have benefits and some might be better depending on your utilisation. Being able to switch will allow you to flex your purchasing power and always get the best deal. It’s not only about how much you pay for data and minutes either. Some people may not be happy with the reception or constant interruptions of service, or they may not like how customer service is treating them. In this case, going for another plan could be a good option.

Con – Higher Upfront Costs

In the case that you want a brand-new phone to go with your SIM-only deal, you’ll have to pay more upfront. While it might end up costing you less in the long run, you have to be prepared for that initial hit. Some providers will also offer free technical service if you get a plan with them, which is not always the case when you buy a new phone.

Pro – Less Risk

There are also many risks to getting locked into a contract for many years. Let’s imagine that you decide to live in a different area of the country and find out that there is either no coverage or bad coverage where you are. Or maybe you decide to move abroad for a while or permanently. Now you’re stuck with a plan that you still have to pay for even though it’s largely unusable. All of this can be avoided by going for a SIM-only plan.

Con – Possible Compatibility Issues

Many things can go wrong if you decide to get a SIM-only deal and don’t use one of the phones recommended by the carrier. Most phones will be locked into a certain network and you might have to pay to have it unlocked. Depending on the phone and the service, you could end up spending much more than you expected. So, you will have to factor this in to know exactly how much you’ll be saving and if it’s worth it.

There are also cases where the phone is simply not compatible with the network. This is often the case with older generation phones that can’t handle things like 5G. So, you might end up buying a phone that will be useless to you. This is why you should contact the company and ask them directly if a particular phone would work on their network. This is also something that you can have checked at one of their service points if they have any.

As you can see, SIM-only deals have their share of advantages and disadvantages. This is why you shouldn’t write them off from the outset. We strongly suggest that you look at your options, and see if one could work based on your budget and usage.