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Leasing a cell phone can be a good idea if you like to upgrade to a new phone every year (or thereabouts) and don't necessarily need to own your phone. Leasing a phone can be cheaper than paying off a phone in full (whether outright or via monthly installments) and you'll be able to get a new phone every 12-18 months.
Leasing a phone can be cheaper than paying off a phone in full (whether outright or via monthly installments) and you'll be able to get a new phone every 12-18 months. It may seem like leasing your cell phone isn't a good idea, but for some, leasing could actually save you money in the long run.
'Buying a smartphone outright can be cheaper in the long run, compared to locking yourself into a two-year contract. ' But buying a phone outright isn't for everyone. For example, if you like to sport the latest handset and aren't fussed by higher monthly plan costs, then a mobile plan might suit you just fine.
If you decide to keep leasing the phone after your agreement ends, you can keep paying the same monthly amount for as long as you wish to lease your device. However, be careful if you paid $0 down. If that's the case, your payment will go up to the original monthly amount quoted for $0 upfront customers.
Many people assume that buying a phone on a contract gets you the biggest savings, thanks to telco handset subsidies. But the mobile phone market has changed. These days, you can save up to around $1,000 over 24 months by buying an iPhone outright with a SIM-only plan, rather than on a contract.
Although cell phone companies require a credit check before they lease you a phone or provide you with a cell phone contract you can not build creditworthiness this way. In fact, the purchase will not be reported to any of the three credit bureaus at all. If you are looking for ways to build credit.
Many cell phone carriers now require you to purchase or lease a new cell phone. Even though you're essentially being extended a loan to pay for your new phone, the payments won't be reported to the credit bureaus and won't help your credit score.
Good news: If you're among the 95 percent of people in the U.S. who has a cell phone, simply paying that bill may now help you add to your credit history. Cell phone bills can help build credit because you can now include them on your credit report.
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