/ Sim only plans

Sim only plans: What you need to know

When considering a new phone you should consider both phone contracts and sim only plans but in particular sim only plans as they tend to be the cheaper of the two. It's vital to understand the benefits of sim only deals before making your buying decisions as they could potentially save you hundreds of pounds.

How do sim only plans work?

Sim only plans can either by pay as you go or monthly.

Sim only plans are strictly what they sound like for the sim only. They include a sim and your usage allowance which can be either pay as you go, monthly or ven a 30 day bundle.You will have to buy your mobile phone separately. You can buy a used phone or buy a new phone directly from retailers such as Apple.

Pay as You Go

Pay as you go plans lean you simply top up online or you top up over the counter for the the data, minuites or texts you want. The rates charged on pay as you go deals are substantially more expensive than those on [ mobile phone contract plan]s(https://www.mobiles.co.uk/contract-phones).

Pay as you go plans can sometimes work out cheaper depending on your usage and offer more flexibility than other forms of Sim only plans.

Monthly Sim only plans

Monthly sim only plans come with text, minutes and date packaged a variety of different ways to suit different people. You can choose the bundle that suits your needs best e.g a data bundle where there is significantly more date but less of texts or minutes.

Sim only plans can also be contractual. Usually 12 month contracts. In some cases theses are 30 day rolling contracts while in other cases these are fixed 12 month contracts which may charge you a fee if you cancel early. This fee is still substantially cheaper than what you will pay when cancelling a mobile phone contract early

Monthly sim only plans renew after the end of their term so you should always inform your network provider at least 30 days before that you do not intend on renewing.

The benefits of sim only plans

Cost

Sim only plans are good if you don't use your phone often and need a package that reflects that. It's also a bonus if you don't care much about new phones. With a sim only plan you can save tens of pounds a month and hundreds a year by avoiding the huge costs of mobile phones on contract.

Credit

Sim only plans are good for people who don't have enough credit score and who will likely fail a credit check for a mobile phone on contract. A 12 month sim only deal is also a good way to build credit as even though the network provider might not run a credit search on you prior to giving you a 12 month sim only plan, they will almost certainly report your payment date back to the credit bureau. As long as you avoid missing any payments your credit score should move upwards.

Flexibility

With a sim only deal you can easily move networks, upgrade to different packages and change phones whenever you want with little or no cancellation fees.

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Sim only plans: What you need to know
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