Mobile Phone Contracts V/s. No-Contract Phone: Which One Would You Choose?

No-contract pre-paid prevails in the USA because of the contribution of TMO. More people are switching on to it. There must be apparent pros for the same, followed by specific cons. How does a contract stand in the face of no-contract? 

A contract allows you freedom variedly, and in the majority of situations, in long term, it costs you less. Of course, there are tradeoffs if you opt for the no-contract postpaid or prepaid carriers; hence, it could safely be said that both no-contract and contract have their unique positive and negative aspects. Shop Now on Tesco Mobile


Many US carriers take up the contracted agreements such as Sprint, AT&T, Boos, Cricket, US Cellular, and Verizon players. Depending on their services, the proportion of pros and cons vary.


Customer service is better because you agreed for a term of two years to be committed to them. Expecting you to renew with their expiry, they put their best effort for utmost happiness. 

  • Priority of Network 

If your data network becomes highly congested, the one who signed up for the contract may not get priority. As a result, a crowded market results in a slow down potentially when you consider pre-paid versus a contract.

  • Less Payment for your smartphones

T-Mobile Network and other more giant carriers have financing offers for their plans that have no contracts. You will have to pay $500 additional for a smartphone that could have been yours for a meager $50 to $200 contract. Other carriers offer a money-back guarantee by waving off the charges through plans being offered at higher rates. 

  • Family Plans

It is worth it that it depends upon what you choose; for instance, no-contract, postpaid, prepaid, or contract plans of your choice. In some instances, more extensive contractual family plans may be a more reasonable option than pre-paid options. Cricket and T-Mobile, both owned by AT & T, have better family rates than the current plans.

  • Better Coverage

Coverage isn’t guaranteed on no-contract pre-paid plans. But compared to contract plans, the pre-paid plans offer coverage that is limited. If you subscribe to Verizon prepaid on-contract, you don’t have to pay the roaming fees. Contract plans mainly offer this facility to their customers.

  • Device Insurance 

The device has a third-party smartphone insurance option, and Cricket has its insurance plans. It is a more straightforward proposition for postpaid contract carriers. 


  • Expensive deal

The upfront payment is cheaper in the case of contract plans; however, the monthly plans become more and more expensive in the long run. It is for mention here that a Verizon 2GB contract plans offer a cost of ownership at $2,995. As against this, the cost of ownership of Straight Talk is only $1,407. This depends upon how expensive a phone is. But in any case, your plans become expensive in the long term. 

  • Less Freedom

Once you enter into a contract, termination for a reason whatsoever will cost you very high. If you intend to go overseas, it is more a matter of hassle and cost.

  • Less Phone Choice

The GSM-based pre-paid services provide you to bring over that work with AT&T or T-Mobile frequencies, which also includes imported devices. You are stuck up with the offers of your cell phone provider.

  • Fees

Contact plan is riddled with fees for monthly access, activations fees, and fees for monthly rates. Sometimes, you may be required to bear with the taxes only. In the case of Cricket, you do not have to pay even the tax because the rate advertised is all-inclusive. But for the no-contract postpaid and prepaid plans, the fees are fewer.


Traditional cell providers are Cricket, T-Mobile, Aio Wireless. Postpaid no-contract carriers are T-Mobile. There is a fundamental difference between them. But, your ultimate goal is to save costs and have more freedom of dealing with your smartphone in the manner you like.


  • Extensive Savings

You save a noticeable amount both on the no-contract, postpaid plan, and prepaid offer compared to on-contract customers. Additionally, the fee is less on the postpaid no-contract and prepaid sides. Moreover, the plan norms are more transparent than others. 

  • No Credit Check

Prepaid leaves no occasion for you to be worried about your bad credit or credit score. The post-no-contract plan requires your deposits to be checked.

  • Flexibility

If you possess an unlocked GSM smartphone and want to go overseas, you can safely take your handset, place the SIM card of the nation where you are visiting, and you are done.

  • Your Phone is Yours’

Since the phone is unlocked, you may do whatever you please. If you are not happy with the services that T-mobile offers, then you can move to other networks including Straight Talk, Cricket, or even AT&T.

  • Varied choices of smartphones 

If you own a network with a GSM SIM card, then you may go in for any device that supports the network of your frequencies. Thus, you have more choices of devices and the capability that offers prepaid networks on your smartphone.


  • Full Price of Phones

Moto X, Moto E One Plus One, and Nexus may not cost much, but some devices may cost from $130 to $400, or a decent one may cost more than that. According to the no-contract postpaid of T-Mobile, you incur monthly installments (EMIs) to pay for your smartphones. If you pay more upfront, there is no long-run impact financially. It is a once for all affair. 

  • Coverage isn’t on the top priority of the network service

Whether it is the network priority or the cover zone, it is always advisable to have contract plans. It is for you to choose the no-contract postpaid or prepaid carrier.

  • Low-rated customer service

In an MVNO, customer services may not be very good as compared to the giant prepaid carrier.

Final Thoughts!

Experience considers a no-contract, postpaid plan for a conventional contract to finance your phone. You will have the same coverage and customer service opportunities as a contract. There will be noticeable discounts. For those opting for a no-contract postpaid plan, T- Mobile is the best option.

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