Buying a phone on Credit/ Finance

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Professor1991

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Hello All,

I'm in the market for a new phone. I have my heart set on the Samsung Galaxy Note 8. Thing is, I of course want the phone for the cheapest possible price but I would also like to pay for the phone over a period of time. I intend to buy the phone Sim free. In regards to credit, my credit history good, I always keep payments up. I'm fairly careful with money, I can easily pay for this phone in 1 payment but I don't like the idea of a huge chunk of my savings to go in 1 payment.

For starters could anyone recommend any cheap places (In case I've missed a good offer) but is their suitable option for me ? I have paypal credit although my limit isn't sufficient enough to cover the cost of the phone.

Thanks,
 
O2’s Refresh tariffs separate the cost of the phone from the tariff. The phone is purchased on an interest free finance agreement over 2 years, though you are free to settle the loan, without penalty, anytime.
Your commitment to O2 is only as long as there is money outstanding on the phone.
The Refresh tariffs are only available from O2, not Carphone Warehouse.
 
find the cheapest seller and pop it on your credit card and pay it off over a few months.
 
I just bought an iPhone through Virgin mobile. They use the EE network so their coverage is very good. Virgin’s price was also about a third cheaper than EE offered me, despite me being a loyal customer for nearly 20 years.

The good thing about Virgin is they split the phone and Sim into two different bills so you can change call plans easily if you want more or less data or calls, but you keep the same phone. You can also pay off the phone early, so you could start off with monthly payments until you get it down to an amount you can pay off in one chunk, if that’s what you’d prefer. (Obviously you pay the interest on the whole deal though).

I’m very happy so far. The PAC code transfer went smoothly and I’ve had zero problems with their service. And the best bit: 4 gb of data, 1500 minutes of calls and unlimited texts for £4 a month. :) Anything unused also rolls over to the next month. I was previously paying EE £20 a month for less allowance.
 
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Mr Bump said:
find the cheapest seller and pop it on your credit card and pay it off over a few months.
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As Mr Bump said, the fella from Money Saving Expert has said many times, it's cheaper to get a 0% credit card and pay it off within the 0% time-frame. The contract prices are ludicrous.
 
Gogster said:
As Mr Bump said, the fella from Money Saving Expert has said many times, it's cheaper to get a 0% credit card and pay it off within the 0% time-frame. The contract prices are ludicrous.
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Sound advice unless you can bag a good deal through your current provider..

I had a 10 minute chat with Virgin which was well worth it as I bagged an iPhone X for £22 pm over 30 months and a 20gb data, unlimited text/calls sim for £7
 
I wouldnt recommend getting it through CarPhone Warehouse, once they have your name they will pester you every 12 months to get a new contract or phone with them. I accidentally bought one through them, they tricked me into believing they were O2 and every year since I get 3/4 calls a week asking if I want an upgrade/better deal etc
 
I've been declined a credit card in the past. I even applied for paypal credit (As I use eBay and I thought I might get approved, so I can I can improve my credit score) but I also got refused for that. I did however get approved for an Argos card. I used it well, making good timely payments and it was a welcome surprise when I found out I could use them in Sainsburys stores. Since acquiring the Argos card, my credit score (via Experian) has gone up and I've since acquired Paypal credit. I reckon I can probably get approved for a credit card but I find myself hesitant as I don't want too many credit cards/ options.

Thing is, I already have a good SIM only deal with 3 (Network coverage isn't the best in my view but internet prices are). So I am just after an unlocked phone. Samsung and other main stream sellers sell the phone at £800+ whereas many others (Reputable eBay sellers) sell for £500+. Logic dictates I take the cheaper option, however I feel as though their must be a catch for being so cheap (Comparatively speaking of course).
 
Professor1991 said:
I've been declined a credit card in the past. I even applied for paypal credit (As I use eBay and I thought I might get approved, so I can I can improve my credit score) but I also got refused for that. I did however get approved for an Argos card. I used it well, making good timely payments and it was a welcome surprise when I found out I could use them in Sainsburys stores. Since acquiring the Argos card, my credit score (via Experian) has gone up and I've since acquired Paypal credit. I reckon I can probably get approved for a credit card but I find myself hesitant as I don't want too many credit cards/ options.

Thing is, I already have a good SIM only deal with 3 (Network coverage isn't the best in my view but internet prices are). So I am just after an unlocked phone. Samsung and other main stream sellers sell the phone at £800+ whereas many others (Reputable eBay sellers) sell for £500+. Logic dictates I take the cheaper option, however I feel as though their must be a catch for being so cheap (Comparatively speaking of course).
Click to expand...

You didn’t originally say it had to be open to any network.

Take advantage of your Argos card and buy it there.
 
Isn’t Argos card a typical 29.9% APR card?

So £135 interest in 12 months or £272 in 24.

Don’t forget you can always close a credit facility if you are eligible for a better rated one to minimise the exposure.
 
Mozthecat said:
Isn’t Argos card a typical 29.9% APR card?

So £135 interest in 12 months or £272 in 24.

Don’t forget you can always close a credit facility if you are eligible for a better rated one to minimise the exposure.
Click to expand...

For a purchase that size you can choose the interest free 12 month option.
 
MatBin said:
I wouldnt recommend getting it through CarPhone Warehouse, once they have your name they will pester you every 12 months to get a new contract or phone with them. I accidentally bought one through them, they tricked me into believing they were O2 and every year since I get 3/4 calls a week asking if I want an upgrade/better deal etc
Click to expand...
I bought mines through them, and haven't had any calls.
 
I think given the fact you are struggling to get credit maybe an £800 phone might be a little bit of a stretch. Not being funny and all. Maybe a lightly used one of here could be a better option.
 
Professor1991 said:
I can easily pay for this phone in 1 payment but I don't like the idea of a huge chunk of my savings to go in 1 payment.
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Thing is, how much interest are you getting on your savings at the moment, compared to how you'll pay for the phone.
If you can't afford that lump sum to leave your savings, then I'd say you can't afford the phone. What happens to your monthly payments if you suddenly become unemployed?
 
What phone do you have at the moment? Can you offset the cost by selling the old phone?
 
Get a lightly used Note 4
 
MatBin said:
I wouldnt recommend getting it through CarPhone Warehouse, once they have your name they will pester you every 12 months to get a new contract or phone with them. I accidentally bought one through them, they tricked me into believing they were O2 and every year since I get 3/4 calls a week asking if I want an upgrade/better deal etc
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I’m curious as to how a company that calls itself Carphone Warehouse convince someone that they are actually another company that calls itself O2. Sounds very strange!
 
Ricardodaforce said:
I’m curious as to how a company that calls itself Carphone Warehouse convince someone that they are actually another company that calls itself O2. Sounds very strange!
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Because I had a phone and network connection supplied by O2 for many years and I guess at some point my data was "captured" by CPW who then called me and sold me a phone without making it clear they were not O2, my fault for not noticing obviously and I no longer have a phone supplied by them but once on their "list" they continue to contact me every time I near renewal date despite being now SIM only through O2.
 
The way the Argos card works is that you have a set period of time to pay the money (Usually 3 - 12 months, relative to the value of the transaction). If you pay it everything back within the allotted time period, you don't get charged any interest. For example, I bought some earphones and I was allowed to pay them back within 6 months. I can pay everything back on the last day or what I choose to do is personally, pay a small amount every week. Thing is, my credit limit on my Argos card is £240. It's been £200 for like 9 months and I recently requested a higher limit and I was given £40 !
Credit wise, I've seen my credit score go up by more than 200 points. I've been told I'd be more than likely get a credit card but I don't want one (As handy as it would be) it would just be another liability. I can buy this phone at least 10 times over but after a period of time when I was younger, I had trouble paying £10, I've learnt to conserve my money. I suppose a valid argument can be made that I shouldn't even buy the phone but I assure you, I deserve this ! Ultimately, in the worst case scenario, if I lose my job or I can't make my repayments, my savings can bail me out and I've learnt not to go overboard with spending, hence why I want to spread the cost of the phone over a period of time whilst I also save money (Putting a portion of my salary aside).


Paypal credit is probably my best option as my limit on that is £500. I believe Samsung have a credit payment called Samsung Finance, but I find myself reluctant to go down this path as I frequently see the phone for at least £200 cheaper elsewhere. I have no interest in purchasing the phone on contract. Yeah, sure, I can spread the cost quite easily over 12 months say, but the deals you get with data and so on are just ludicrous. My SIM only deal on the 3 website is £30 a month. I pay, due to being a long term customer, £19. No contract offer can replicate what I get for a reasonable price in my view.
 
The main point of credit is to push you to spend more than you can afford today. It’s wrapped up in nice language about being able to spread payments etc, but it’s not there for your benefit, it’s for the retailers/lenders.

Speaking as someone who learnt the hard way, pay for the phone from your savings upfront, and if that makes you uncomfortable at the outlay, you can’t afford that phone yet. Wait until it doesn’t and then buy it.
 
Also worth looking at a cheaper alternative. Unless the S Pen is vital to you.
 
If a few hundred quid is a huge chunk of your savings think again about wasting it on a phone/toy
 
Nod said:
What makes you so deserving of a £500 phone/phablet? What will it actually do for you that your current device can't?
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I know what you mean. I bought my Samsung S5 second hand. Much as though I'd like a new phone, I can't justify £600+ to replace something hat still works and does what I like. I bought a new battery instead for £10 :D
 
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strumstrum said:
Sound advice unless you can bag a good deal through your current provider..

I had a 10 minute chat with Virgin which was well worth it as I bagged an iPhone X for £22 pm over 30 months and a 20gb data, unlimited text/calls sim for £7
Click to expand...

That is a banger!!
 
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