Wireless Service Contract Options

Yearly Service Contracts or Month-to-Month Service

Most carriers and plans require that you sign at least a one-year contract. This means that you agree to keep your service with the carrier for a year, whether or not you turn the phone on. And if you find a better deal somewhere else, well you signed on for a year, and a year will go by before you will be released from your contract.

Leaving a contract early usually results in a cancellation fee (at least $150). The amount varies from carrier to carrier, so be sure to read and understand the agreement before you commit to it. If you add the termination fee to the new company's activation fee, it usually isn't cost effective to switch plans mid contract.

Some carriers also offer plans on a month-by-month basis. Notably, Sprint PCS plans are available in either month-to-month, annual, or biannual flavors. Carriers may offer incentives for entering into a longer contract, so if the plan makes sense for your usage, a one-year or longer contract can be a good deal.

Credit Checks and Billing Pre-activation credit checks are a standard practice in the cellular industry. Depending on the results of your credit report, you may be required to pay a deposit to activate cellular service.

If you don't want to be locked in for a year, or if you have some damaged or no credit history, then a pre-paid service plan is another option. The prices are more expensive per minute but you won't pay additional tax.