How to choose a phone contract
Last updated: 22 October 2026
A phone contract spreads the cost of a new handset over monthly payments, along with your calls, texts and data. The monthly price alone doesn't tell you the full cost.
1. Work out the total cost
Multiply the monthly price by the number of months, then add any upfront cost. Compare that total with buying the phone outright and taking a SIM-only plan, which is sometimes cheaper.
2. Know the two parts of the deal
Many providers now split the deal into a handset finance agreement (often 24, 36 or 48 months) and a separate airtime plan. They can have different lengths and different rules for leaving early.
3. Expect a credit check
Handset finance is a form of credit, so the provider will usually run a credit check. CompareDirect isn't a lender or credit broker. The agreement is between you and the provider.
4. Check for price rises
Look for any mid-contract rise, which must be shown in pounds and pence, and whether it applies to the airtime, the handset or both.
5. Trade-ins and extras
Trade-in credit and bundled extras can reduce the cost, but check the conditions and deadlines before counting on them.
Before you buy
Our listings are dated snapshots of providers' own pages, not live prices. Always check the price, contract length and terms on the provider's website. Nothing here is financial or insurance advice.