Don’t Waste Your Money: The Catch with Free Phone Offers
CHARLOTTE, N.C. –Β You know spring is almost here when cell carriers start announcing free phone offers.
The ads are everywhere right now for Apple’s iPhone 13, and the new Samsung Galaxy s22 – some claiming you can get the hottest new phone for “free” or for “$0.”
But how can a carrier give away an $800 phone for nothing? Of course, there’s a catch.
The tech site ZDNet investigated and said these offers often come with extra-long contracts and hidden fees.
What to expect if you sign up
In many cases, they say:
- You need to trade in a phone in good shape that still has value, meaning not an old iPhone 5, or any 3G phone (AT&T is ending 3G now, and Verizon plans to drop it later this summer).
- You must agree to an unlimited data package, which may be more than what you need.
- You must sign up for a 36-month installment plan, which is a 3-year locked-in contract – longer than the old 2-year contracts.
- Expect to pay an activation fee of $30 to $50 to set up that new phone, plus taxes, and possibly some other fees.
But from the “doesn’t that stink” file: Why – in many cases – do you get a bill for a supposedly free phone?
ZDNet said most carriers will charge around $25 a month for that phone, then issue you a $25 credit as long as you remain on the plan.
The catch is if you make any changes
If you want to change your plan or get a new phone before the 3 years are up, those credits stop and you have to pay the remaining price on the phone.
Remember that you are agreeing to a 3-year contract — not 2 years like in the old days. So you need to make sure you are comfortable with using the same phone, with no changes, over the next 3 years.
If so, these deals can be worthwhile.
As always, don’t waste your money.
