Why do I need to sign a 2-year contract to get a freephone

March 6, 2008 by  

Many of you might have searched for free cell phones online before and found numerous free cell phone deals. Some of them claim to give you a 100% free phone. However, as you read further, a 2-year individual or family service contract is required. Without a contract, the most popular phone like the Motorola razr can cost you $300. If you are only looking for a cell phone without contract, go for a prepaid phone that lets you pay per month and cancel the service anytime you want. Why are carriers are willing to offer you something for free, what do they get in return? Within the next 2 years, they are hoping you can use their service as much as possible – going over plan minutes, using more text messaging, or downloading ringtones. If you can keep an eye on the usage, a 2-year activation actually makes sense. So can everyone qualify for a free brand new razr or Blackberry? There are serveral steps you need to pass before the carriers hand you a new freecellphone. First, you need to pass a credit check. The credit checking process varies depending on the carrier. If you have low credit scores, chances are you need to pay a deposit to the carrier to secure the new phone. Keep in mind that the deposit will be returned to you once the contract is over. If you ever cancel or late on the monthly payment, you will lose that deposit to the carrier. Second, after you are approved, you need to activate your phone. Third, read the rebate instruction carefully and submit the rebate form as soon as possible – many people miss the last step and end up disqualified for the rebate.

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