Seven questions to ask before switching cell-phone carriers
Your current cell phone聽carrier isn鈥檛 cutting it anymore, and you鈥檙e ready for a change. But pause before you pull the trigger. You don鈥檛 want to be surprised by hidden costs or merely trade one shoddy carrier for another.
To make sure you end up with a better deal, ask yourself these seven questions before you switch.
1. Am I under contract, and do I need to pay off my phone before switching?
If you鈥檙e on聽a two-year contract and you want to switch before it鈥檚 over, look into your carrier鈥檚 policy on early termination fees. You鈥檒l usually have to pay several hundred dollars to escape. Keep an eye out, though: Sometimes your new carrier will pay your聽early termination fee when you switch.
If you鈥檙e not under contract but are paying for your phone on an installment plan from your carrier, you鈥檒l need to buy it outright聽before you can switch.
2.聽Am I actually using all my data?
Before you pick a new carrier, evaluate your plan structure.聽? Average users go through 2 to 3 gigabytes聽per month.
Make sure your plan fits your usage, but be careful when downsizing. Some companies, including聽听补苍诲听,听still charge for data overages, which might wipe out any savings you get from having a聽smaller plan.
3. Can I jump on a family plan?
You can聽聽to pay their portion of the bill on time, even people who aren鈥檛 related to you. These plans can mean significant monthly savings as long as you don鈥檛 mind managing the logistics.
Set clear expectations upfront: Who will pay the bill? When is the money due? If you鈥檙e handling the bill every month, you鈥檙e on the hook for it, whether everyone鈥檚 gotten their money to you or not.
4. Would a nontraditional carrier save me money?
Some carriers, such as聽听补苍诲听, route their customers鈥� cell usage聽through Wi-Fi as much as possible and fall back on cellular networks聽only when necessary. They also have attractive rates for people who don鈥檛 use much data. Together, those factors can add up to great savings.
These 鈥溾�� carriers do have some drawbacks, though. Traditional carriers are often cheaper if you鈥檙e a heavy data user, and Wi-Fi first carriers have more limited phone selections. Still, if a Wi-Fi carrier is a good fit for you, you could be looking at dirt cheap wireless service.
5. Will I get good reception?
Once you know what you want in a plan and have a carrier in mind, start considering specifics. Cost is important, but your new carrier鈥檚 prices聽don鈥檛 matter聽if you can鈥檛 make calls or surf the web聽in your own home. Ask around to find out which one has the best聽local service.聽Maybe even invite a friend who聽uses the聽carrier over to see if her聽cell phone works at your place.
6. Can I bring my own phone?
If you currently use a GSM carrier 鈥� those are聽,听聽and the聽聽that use their networks 鈥斅爕our phone is probably聽compatible with any other GSM network. Some of Verizon鈥檚 and聽鈥榮 newer phones are also GSM compatible. If you have a compatible phone, make sure it鈥檚聽聽before switching.
If you can鈥檛 bring your own phone, ask your new carrier if you can trade it in for a credit toward another handset. Or sell it online, either through eBay or a phone reseller聽service. You鈥檒l likely get more money for your phone on eBay, although eBay takes a cut and you鈥檒l have to manage the buyer relationship and shipping. Reseller services like Gazelle and Orchard offer lower prices, but they鈥檒l send you a box for shipping and make selling a breeze.
7. If I鈥檓 switching for a promotion, what聽will聽happen when it聽ends?
Always play the long game. Sure, you鈥檙e getting a wicked deal with that promotional price now, but what will happen to your bill when it聽expires? Make sure that you can live with the increased price or that you鈥檙e prepared to switch carriers again when the time comes. Don鈥檛 lock yourself into a long-term agreement if you鈥檙e planning to bounce in a year.
Stephen Layton聽is a staff writer at NerdWallet, a personal finance website. Email:聽slayton@nerdwallet.com.
This story originally appeared on .
