With phone companies introducing refreshed versions of their existing flagships every year, consumers are tempted to upgrade at the same pace. However, it may not be such an easy or inexpensive process for cell phone users who have a contract-based plan. This is because telecom companies require the user to pay an early termination fee for canceling the contract in the eventuality that the user intends to leave the plan before the term is completed.

That is why some prefer to opt for no contract phones so they can switch between plans and carriers easily. However, that’s not all. Do note that these phones are more expensive than phones that come with a contract. Contract-based phones are offered at a cheaper rate at the time of purchase and the cost of the plans in a way covers up the rest of the payment.

When it comes to resale value, no contract phones can be sold to recover the cost. There are several online portals that accept prepaid phones to be resold.

When you buy a no contract phone, you have the freedom to switch plans whenever you want. However, not all plans would be compatible with your phone. For example, if you buy a 4G data pack and have a phone that does not support 4G Long-Term Evolution (LTE) network, you will not be able to use the services of that carrier. But most of the phones these days are made to support and be compatible with all kinds of carriers.

Before you buy a no contract phone, make sure to read all about no contract phones , especially if you are moving to a no contract phone for the first time. Make sure you compare costs of the various models available so that you can make an informed purchase. Compare these phones with the contract-based ones, check all the pros and cons, and then take your decision that suits your requirements well.