How to Save Money by Buying Unlocked Phones

All the best smartphones have something in common. To get it at an affordable price, you need to sign some kind of contract that binds you to a wireless carrier. At the very least, you are led to believe it. Many don’t realize that they can save some money on a contract by purchasing unlocked phones.

This is no coincidence. In the United States, carriers use smartphones as a charm to lure new users in the door. Contract users are likely to spend more money through family plans. They are willing to pay more for unlimited data. More importantly, possible penalties for switching networks keep these users on the network they signed up for longer. They invest more personally in the service.

Gradually this is changing. Smartphone buyers become influential by word of mouth and through programs designed to educate users on how much they spend on wireless plans. Changes in the industry have made it possible to buy unlocked phones and skip contracts altogether. Doing so puts the fate of your phone and wallet in your hands.

Here’s how to buy unlocked phones and save yourself some money and heartache.

Buying an Unlocked Phone: A Guide

To save money on your smartphone and skip a contract, you have to forget everything you know about smartphones. You are conditioned to upgrade every two years. You were taught that smartphones cost $199 or less. You are used to having to change your phone when you change networks.

By purchasing unlocked phones, you can completely avoid operator interference.

Your smartphone won’t cost you or your carrier $199. The Samsung Galaxy S7 is $649 and up, even though it’s been a year since its release. The iPhone 7 costs $649 at its lowest storage capacity. The iPhone 7 Plus starts at $769. You’ve always paid these prices, but never noticed it before because your carrier has factored the rest of the cost into your two-year contract. Sometimes they break up these costs using setup payments that create strict penalties for leaving. T-Mobile has a rental program and Equipment Installation Plans. AT&T has Next payouts.

The question is, if you’re paying for your phone in installments, why go straight through your carrier? In most cases, the cost of their plans, which they previously compensated in this way for the price of your phone, did not go down.

The Moto Z is just one of many unlocked phones you can buy and bring to AT&T or T-Mobile.

No need to buy your smartphone through an operator. Instead, you can go directly to the company that made it. You won’t have to log in and wait for someone to help you. You won’t have to wait for an admin to get your new phone or repeatedly dismiss cases and add-ons. Smartphones purchased directly from their manufacturers are not tied to a particular carrier, giving you the freedom to switch to another carrier to get the cheapest monthly rates for your needs. Also, they are not filled with useless apps and services that carrier-sold phones do. Use the links below to go directly to each phone’s store page.

Make it Affordable Through Financing

If you want to save money without a contract, but you don’t have the cash up front, that’s fine too. With a credit card you already have, you can make your low-interest shopping instantly. You can also go directly to the smartphone manufacturer and get financing through their partners like Affirm.

Expensive smartphones aren’t your only option here. Many latest generation and mid-range smartphones are also available online directly from their manufacturers. You’ll also want to factor in the recent plethora of “affordable flagships”. These phones are not available with a contract and can be purchased online. They cost a lot less than the high-end phones you’re used to hearing about.

OnePlus 3 is one of the cheapest high-end unlocked phones you can buy.

Must Be Mobile maintains a constantly updated breakdown of the most affordable flagships you can buy without a contract. Consult him for the best the industry has to offer.

Look for brands like Moto, ZTE, and OnePlus. Wherever you’re buying from, be sure to find out if that store has an appropriate return policy before you buy. Stay away from any site or company that forces you to charge a restocking fee. If you’re buying from Amazon or eBay, don’t buy phones labeled “International”. There will be no guarantees.

Checking Compatibility

When browsing for a new phone directly from retailers and manufacturers, be sure to pay attention to phone compatibility. Sprint and Verizon have specific requirements regarding unlocked devices running on their networks. They also use CDMA technology which is very specific to their network. AT&T and T-Mobile use GSM networks.

Adding a purchased phone to plans on their network is as easy as replacing the SIM card in your phone or purchasing a new SIM card directly from retail stores. SIM cards are tiny chips that go into your device. They connect your smartphone to your account at your chosen wireless carrier. Do not confuse them with SD Cards. They are not for storing your pictures, music and videos.

A SIM card taken from inside the Samsung Galaxy S7 Edge.

Unlocked phones will clearly tell you that they are unlocked and on which networks they are working. If not, be sure to ask the seller explicitly. You can check network compatibility yourself by searching which bands your mobile operator uses for its services. If the bands available on the phone match the bands your carrier is using, you’re all good.

Finding and setting up unlocked phones may sound daunting, but it’s not that hard. Pay attention to the phone you like, pay attention to details such as the strap and price. You’ll have a contract-free, unlocked phone and you’ll be saving money in no time.