Sick of contracts, sick of being held against your will…with months of payments for a service you no longer need. Perhaps you just moved, or need to move, and your provider won’t let you out of your contract. A no-contract plan may be the solution for you!
Never get caught out again.
This is why it’s important to point out there are a few things to be wary of when choosing the correct provider and plan.
If you are offered a no-contract plan which is considerably more than a “contracted” plan, you are simply speaking to the wrong provider. In fact, if the same provider still have contracted plans (as well as no-contract plans), it means they are not offering no-contract plans for any other reason than covering their bases. They feel compelled to offer these because they are losing business, rather than offering them to give you freedom.
So be wary!
Always read the fine print especially if they “also” offer contracted plans:
- Do they charge a termination fee?
- Any other hidden fees in their no-contract option?
- Do they have a cancellation fee?
- Is there a “membership” fee?
There is a page called a CIS (Critical Information Summary), which each provider will have on their site. Have a quick read of this.
Most of the very big players go down the contract route because they have the luxury of a captured market, huge marketing budgets and they abuse the fact that most consumers won’t know a good plan from a bad one. And then they offer no-contract plans as a last resort option to get your business, but they are often much more expensive.
A recommendation is to find some reviews about your chosen provider and see what others have to say about them.
Pros of having a no-contract plan:
Protection – Consumers in the know, know a good plan from a bad one and will force a no-contract only provider to always offer fair value-based plans, therefore indirectly protecting you.
Freedom! – It’s all about freedom! Your freedom. You choose, not your provider.
No credit checks, big savings and flexibility.
You have the choice – No lock-in, no punitive terms or termination fees or conditions. Move when you need to. Cancel when you need to. Stay if you want to. The bottom line is it’s about “you” and not the provider.
Service – Better customer service!
This will certainly sound like the biggest cliché, however it is true. No contract means you can walk away any time, which of course is not good for the provider. The only control they have over keeping you, is to keep you happy. To do this they need to provide exceptional service and fair competitive pricing…always!
Network – It is often thought that contracted customers will get priority on a network. But this can work both ways. The big providers abuse their contracted customers and don’t upgrade networks when they should, knowing they can’t simply leave so they don’t look after them well, until a few months before renewal. No-contracted customers can simply leave if the network is not performing.
The right provider – Finding a provider that only offers no-contracts is the best way around this. If pricing changes drastically in the market due to industry movements your contracted plan will not allow your pricing to respond, so you’re stuck with high prices until renewal. No-contract plans avoid this completely.
Cons of no-contract plans:
Price – More Expensive? This can be the case with some providers, but it is a misconception! Often the upfront fee in a contract plan is sold to you as being much less, however over the life of the contract it will always work out more! Always!
Trickery – it still exists. Many providers offering no-contracts have hidden terms.
Deception – Some no-contract plans can be deceiving, so ensure there are no exceptions, limitations and or fine print. The simplest place to start is finding a provider that “only” has no-contracts. Be extra wary of the ones that still offer both contracts and no-contracts!