When it comes to your phone, there’s one big choice that you need to make – pay as you go or pay monthly. But what are the big differences between the two of them? And which one suits your lifestyle and your budget? Read on and find out…
What is PAYG?
PAYG stands for pay as you go. And as far as descriptions go, it’s pretty self-explanatory. With PAYG you only pay for what you use. Whether that’s talk time, texts, data, or a combo of all three.
You’ll need to buy a PAYG phone or pay as you go SIM card to get started. And you’ll have to pay for a fixed amount of credit too. Once that runs out, you can top up by buying more credit in-store or online. The cheapest pay as you go SIM cards are usually only about £5 each. So, they’re an absolute bargain!
Pay as you go pros and cons
There are some great benefits when you go for a PAYG phone or PAYG SIM…
Advantages
You can use a PAYG SIM in a phone that you already own - it just needs to be unlocked.
There’s no monthly fee.
A PAYG deal can help you manage your money better. How much you spend is completely up to you.
With most PAYG SIM deals you don’t have to give any notice if you switch to another network. You could switch today, and all you’ll lose is any unused credit.
Disadvantages
Whenever you use up all your credit, you’ll need to top-up again to keep using your favourite services.
You won’t always have access to the same subscriptions or services that you get with long-term contract phones.
You’ll need to own a phone already or pay for a new one.
If you’ve signed up to pay using a monthly direct debit, you pay for a month in advance. So, even though you can cancel your direct debit at any time, you’ll immediately lose any leftover days or allowance that you have from the month you’re in.
Do PAYG SIM cards and credit expire?
PAYG SIM deals and unused credit only run out if the SIM card isn’t used for a certain amount of time. When you’re looking at any pay as you go SIM, the amount of time till it expires will vary from network to network. Vodafone PAYG SIMs need you to use your phone for at least one thing that costs money every 180 days. Essentially, it’s just about keeping your phone active. Do that, and you’ll be fine.
That activity could be something as simple as sending a text, using data, making a call, or topping up your credit. If you don’t use your phone like this for 90 days, Vodafone will send you a text to remind you that you have 90 days left. If you don’t use it within this time, your mobile number will be disconnected, and you won’t be able to use it. Nobody wants that.
With iD Mobile pay as you go SIMs, you have 120 days instead. You’ll get a text warning you if your SIM hasn’t been used for 90 days. After that, you have 30 days to do one of the activities we mentioned above. If you don’t, your number will be disconnected.
With a VOXI Pay As You Go, you have a whopping 270 days. You’ll receive a text letting you know if your SIM hasn’t been used for 180 days. You’ll then have another 90 days to send a text etc. Like the others, your number will be disconnected if you don’t.
How to top up PAYG
Most networks have similar ways of topping up your pay as you go SIM. With Vodafone, you can use their My Vodafone app, activate a top-up voucher online, or call them straight from your Vodafone mobile.
To top-up with iD Mobile, you can use the iD Mobile app or the My Account section of the iD website. Both are super easy to do.
VOXI works a bit differently because you buy a one-month plan that reactivates every month. Each of these plans comes with unlimited calls and texts, so you don’t need to top up for those. You’re not fixed to a contract though and can upgrade your plan to add more data at any time.
How to cancel PAYG
Cancelling your pay as you go SIM is pretty straightforward. You can let your SIM expire. Which means you’ll still have some time to use the SIM if you change your mind. If you do use it to send a text or make a call though, your expiry period will completely reset.
It’s worth mentioning that if you still have any unused credit on your account when it expires, you’ll lose that credit forever. So, it’s worth using up beforehand if you can.
What is a pay monthly phone contract?
A pay monthly phone contract (or pay monthly mobile phone plan) is a contract that ties you into paying for a phone and its services for a set amount of time. Pay monthly deals can last for 24 months, with other lengths to pick from depending on your network and supplier. Usually, with pay monthly phones you’ll get a set amount of calls, data and texts per month.
Unless you’re on an unlimited contract - which costs a little bit more but means you’ll never run out of what you use the most. We have loads of Vodafone pay monthly plans plus pay monthly contracts from iD Mobile, so have a look and see what works for you.
Pay monthly pros and cons
There are plenty of benefits with the best pay monthly phone deals…
Advantages
You get a great choice of pay monthly phones to choose from.
You can spread the cost of your phone across the length of your contract.
Paying pay monthly phone contracts on time can help boost your credit score.
Phone contract deals usually come with great benefits and advantages that aren’t available on PAYG tariffs.
Disadvantages
It can cost more than PAYG in the long run.
With mobile phone pay monthly deals, you’re tied into a fixed-term contract, which reduces your flexibility. If you want to leave your contract, you’ll usually have to pay a fee or pay off the remainder of it.
To sign up for pay monthly mobile phones, you’ll have to go through a credit check to prove that you can keep up with your payments.
What is a one-month SIM-only deal?
A one-month SIM-only plan means that you pay monthly and get a set amount of data, calls and texts. It then rolls over each month so that you start again with the same amount. With some plans, like the ones from VOXI, you can cancel or upgrade your plan at any time. They’re a great option if you don’t want to commit to a 12-month or 24-month deal.
Pay as you go or contract?
Choosing whether to go for a pay monthly or SIM-only contract depends on a load of things. But most really boil down to cost and flexibility. If you want the latest pay monthly phone deals and can afford to pay a little extra (and do it on time every month), then you might find a pay monthly phone contract is better. Or, if you want more flexibility without being tied down to a contract - and aren’t fussed about an all-singing, all-dancing phone - then a pay as you go deal could be more tempting.
If you really can’t pick, then don’t bank on a dual SIM phone to help you out. Generally, using a PAYG SIM and a contract SIM in a dual SIM phone won’t work. And you’ll still have to choose between a PAYG or a contract.
FAQs
Can I put a PAYG SIM in a contract phone?
Technically yes, you can. But you might need to unlock your phone first to use the PAYG SIM. If you have a phone that you bought a few years back as part of a mobile phone contract, it may be locked to the network that you got it from.
If that’s the case, then you’ll need to call your old network to unlock it. They’ll take you through the process, step-by-step. At Currys though, all of the phones we sell have been unlocked, and that’s been the case now for over five years. So, you won’t have to faff around.
Can I transfer my PAYG number to a contract?
Yes. If you’re switching to a new network, you can transfer your pay as you go mobile number to a contract phone, or another PAYG phone if you want. You’ll need to ask for a PAC (Port Authorisation Code) from your current mobile network provider, by texting PAC to 65075. You’ll be sent the PAC code in a text message. You’ll then need to contact your new network and give them the PAC.
They’ll then switch the number from your old network to the new one for you, which usually happens on the next working day. So, it’s pretty quick. But if you want to transfer your number from a PAYG phone to a contract - and you’re staying with the same network - you should check what you need to do with your network directly.
Is PAYG cheaper than a contract?
It all depends how you use your phone. If you only use your phone every so often, PAYG is a cheap, flexible way to use your mobile. The cost for individual texts and calls is usually more expensive on a pay as you go deal though, and data is too. You’ll also need to own an unlocked phone to make PAYG worth it, otherwise, you’ll need to pay for a new phone.
With a mobile contract, the cost of a new phone is spread out over the length of it instead. And there are some cheap pay monthly phones to pick from if you shop around. The longer the deal, the less you’ll have to pay each month – but you’ll be locked in for longer too. If you want to switch networks while on a contract, you’ll have to pay a fee or pay off the remainder of it. With PAYG, you can switch networks at any time, as long as you give 30 days’ notice to your network.
Want to end your SIM-only contract? No worries. Here’s how to cancel a SIM-only phone contract. And if you’re thinking about waiting to bag a shiny new phone, we look at when is the best time to buy a mobile phone. Black Friday? Christmas? You’ll have to read and find out!
