Here at Moblee.co.uk, we like to keep things simple. We know a lot of our customers are faced with the decision (that sometimes feels like a dilemma) as to which kind of mobile phone tariff to go for.
In the mobile phone world, there are three deals on offer
- Pay as you go (PAYG)
- Sim-only (SIMO)
- Contract
In this guide, we are going to explain the differences as well as the advantages and disadvantages to help you make the right choice.
Pay-as-you-go (PAYG)
This is the ultimate in freedom because you don’t need to worry about being tied down, providing bank details, running over your allowance. You simply top-up or pre-pay the amount you would like to spend. Many operators don’t even need your personal details so if you are concerned about privacy then PAYG is a good option for you also.
The downsides to PAYG are that you have to top-up rather than being automatically billed, it doesn’t represent very good value for money if you use your phone a fair bit and you will have to purchase a phone which can be expensive if you want a feature-filled one.
Sim-only (SIMO)
This is quite a flexible option because it saves you the hassle of topping up involved with PAYG but frees you from being tied down to a lengthy contract as is required with a contract phone.
SIMO tends to be the best value in terms of getting calls, minutes and internet bundles although the downside is the fact that you still have to purchase a phone to use the SIM in, but you can of course use a mobile phone that you love and save yourself some money instead of going for a full-blown contract.
The way SIMOs work is similar to a contract because you still face a credit check, and will usually have to setup a direct debit. The credit check is less than for a contract phone so this makes SIMOs ideal for those with a chequered credit history that still need something more than a PAYG. Many SIMO contracts are 30 day rolling contracts meaning that you can cancel at any time.
Contract
Whilst a Sim-only is a contract with a mobile network, it only comes with the SIM card as opposed to offering a free phone as part of the deal. This means there is a third type of mobile phone deal with is of course a contract phone.
This type of deal involves you receiving a phone as part of your contract (although the contract is only for the SIM, so if you lose the phone you will have to continue to pay!). A contract will usually last for between 12 and 36 months depending on the tariff and the operator you choose.
Which one is right for me?
- Concerned about privacy, don’t want to worry about a big bill, or just don’t use your phone that much? – Get yourself a Pay-as-you-go
- Not bothered about the phone or want the most minutes and texts for the lowest price? Perhaps you want some freedom? Or you’re a heavy phone user with a chequered credit history – Get yourself a Sim-Only
- Want a good phone but don’t want to pay upfront for it? Don’t want the hassle of topping up? Want to know you’ve always got a way to make a call? – Get yourself a contract phone
