Tag: repayment term

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Things to Consider When Financing Your Mobile Phone

Mobile Phone on Finance

A few weeks ago, Apple launched its best iPhone yet, at least according to the brand’s CEO. The iPhone 7 and iPhone 7 Plus were unveiled in September and the phones have no phone jack. It’s thinner and sleeker than ever but you can’t plug in your earphones through the charging port while charging your mobile phone. Regardless, millions have already lined up to buy the latest iPhone. Some of them opted to avail a contract phone and others through a mobile phone financing deal.

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If you are planning to follow others and opt for mobile phone financing, there are a few things to consider before you close and sign any deal. Here are some things to keep in mind when shopping for mobile phone financing:

Credit Checks

Most providers offering mobile phone financing will usually run credit checks on their applicants. If you have good credit, chances are high that your application will get approved fast and without hassles. You can also enjoy great freedom with your smartphone choice if your credit rating is stellar. On one hand, having bad credit may mean low chances of approval. You can still get approved for a phone financing scheme but your mobile phone choices may be limited.

Smartphone Cost

You also have to consider smartphone cost. You may want to buy the latest iPhone or Samsung Galaxy phone. Because these phones are on the high-end range, the cost will be pretty steep. If you have good credit and high monthly income, chances of getting the phone that you want are high. If you have bad credit and you want an iPhone 7, approval for your application is less likely. When deciding on which smartphone to buy on finance, you need to consider the phone’s cost in relation to your credit rating and your monthly income.

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Repayment Terms

In addition to your smartphone’s cost, repayment terms are another factor to consider. Most financing plans can be repaid over a 12-month or 24-month period. Most providers will give you a financing deal at 0% APR if you have excellent credit rating. If you want a longer repayment term like a 36-month period, for example, you should expect for a deal at APRs around 10 to 15%.

Interest Rates

With mobile phone financing, you’ll usually pay more than the cost of your smartphone. For financing providers to earn money, they charge a certain interest to your financing plan. If the starting cost for iPhone 7 is £599 and you want to buy one on a financing plan, expect to pay more than the phone’s original cost by the end of your contract term. In general, the longer your repayment term is, the lower your monthly instalments but you’ll also pay more for your smartphone in the end.

Penalties and Other Charges

In addition to existing interest rates, financing providers also add penalties and other hidden fees. If you miss or delay a payment, for example, you’ll incur penalties added on top of your current monthly bill. If you’re a responsible person, on one hand, and you never miss a payment, you can enjoy the buy now, pay later scheme at zero interest. As long as you pay your balance in full before the end of the deferred period, you have nothing to worry about.

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Your Quick Guide to Mobile Phone on Finance

Mobile Phone on Finance

Do you want an iPhone 7 or maybe a Samsung Galaxy 7 Edge but can’t afford to buy it upfront? The iPhone 7 and Samsung Galaxy 7 Edge are available at a starting price of £599 and £569 for 32GB storage respectively. Unfortunately, most people can’t afford to spend that amount of money on a single payment. Fortunately, there are other options available so you can own the latest high-end smartphones without breaking the bank or your budget.
What is a mobile phone on finance?
One option is to buy your mobile phone on finance. Financing your phone essentially means that you are taking out a loan to purchase the phone. In return, you’ll have a monthly fee you need to pay typically over a 12-month or 24-month period depending on the amount and your repayment term.

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Mobile phone on finance is not the same as getting a contract phone. With a contract phone, you’ll be tied up to a service provider where you get a combination of bundle plan and handset option. Like mobile phone financing, you will need to pay a fixed monthly fee over a 24-month or 36-month period. Once the contract is up, the phone is yours and you’re free to continue the contract and pay only for the bundle plan. Unlike mobile phone financing, it’s not as easy to get approved for a contract phone.
Why finance your mobile phone?
If you want a new smartphone and have bad credit under your belt, getting approved for a contract phone isn’t going to be easy. You’ll likely get rejected outright. If you’ve ever been refused a contract phone before, don’t give up just yet. If you buy your mobile phone on finance, you’ll have a better chance of getting approved. Not all phones are available for this type of financing. Financing typically is only available for selected devices with a value between £300 and £1,000 or more depending on your provider. Mobile phone financing is available online. And the best part, you don’t need to pay a deposit to get approved quickly.

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How to apply for mobile phone financing?
Apply for mobile phone financing is pretty simple. There are typically three steps to complete. First, you must choose your phone. Second, you need to select a SIM plan and finally, choose your financing plan. Depending on your needs and budget, there are a number of flexible plans available.
What are different mobile phone financing options?
If you want a short term plan, the shortest term available is 12 months at 0% APR representative. If your application is successful, you’ll receive interest-free credit to finance your mobile phone purchase available for selected devices. In case 12 months is too short and you want a longer term, you can always opt for a 24-month mobile phone financing. Just like the 12-month plan, you’ll get 0% APR for your deal and there’s no deposit needed as well.
If you’re still looking for a longer term, there’s another option available at 36-month mobile phone financing. For this type of financing, there’s a representative APR involved typically at around 10 to 15%. This means that you’ll have to pay interest on top of your mobile phone’s cost.
Who can apply for mobile phone on finance?
To be eligible for this type of financing, you must be 18 years old or over on the date of your application. You must also be a permanent UK resident for a minimum of three years. You’ll also need to provide proof of income whether through permanent employment, self-employment or regular pension if retired.

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