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While cell phones are useful tools for many people, there’s no denying how expensive they can be, particularly when it comes to the latest models. These days, the average Canadian spends at least $50 – $100 a month on their cell phone plan alone, maybe more for an all-inclusive plan with unlimited calls, texts and data in North America.
Thankfully, if you’re willing to do some research, there are a few different ways that you can pay off your cell phone. Read this to learn how to finance a cell phone in Canada.
As mentioned, prior research is one of the keys to finding a cell phone plan that suits your income and lifestyle. During your search, make sure to check out and compare the cost of the common cell phone financing alternatives below.
Cell plans can vary greatly in price, so you’ll find that most phone providers offer several financing options, including but not limited to:
Similar to how it works with a car, a lease plan essentially allows you to rent a cell phone for a predetermined period (usually around 2 years). You would then make monthly payments until your lease term ends and eventually return the phone.
Find out if you can end a cell phone contract early here.
If your current cell phone is in good shape and not a totally outdated model, you may be able to exchange it for a discount on the down payment on your next phone. A trade-in may even make your new cell phone so affordable that financing isn’t necessary.
An installment plan allows you to finance (purchase) a cell phone through monthly payments. Like leasing, most installment plans last about 2 years, depending on the provider, phone and contract. Once again, a trade-in might be helpful here.
There are plenty of cell providers in Canada, many of which will offer you a good deal on a new phone if you’re willing to switch to their network. So, this is another area where negotiation, comparison shopping and reading your contract carefully are key.
While comparison shopping, make sure to check out some of these popular cell phone providers (costs, plans and benefits can vary according to different phone models):
Cell Phone Provider | Financing Offer | Financing Amount |
Rogers | Down Payment: $0 Interest: 0% APR Term Length: 24 Months | $800 Maximum (Before Tax) on all accessories Other amounts may vary based on plan/phone |
Telus | Down Payment: Varies based on phone, sales price & HST Interest: 0% APR Term Length: 24 Months | Varies based on plan/phone |
Bell | Down Payment: $0 Interest: 0% APR Term Length: 24 Months | Varies based on plan/phone |
Koodo | Down Payment: $0 Interest: 0% APR Term Length: 24 Months | Varies based on plan/phone |
Virgin | Down Payment: $0 Interest: 0% APR Term Length: 24 Months | Varies based on plan/phone |
These figures only apply to the basic plans that these carriers offer. For instance, many of the pricier and more advanced phone models could require a large down payment.
If your income isn’t enough to support your cell phone plan, you can try financing it with a loan from a third-party lender, like a bank, credit union, or private company. This type of financing can come with more flexibility when it comes to your payment options.
Despite it being one of the pricier options, most Canadians charge their cell phone payments to their credit card because it’s easy and convenient. Simply create your account, provide your card information and set up automatic payments.
Today, many cell providers like Samsung and Apple sell their own range of in-house financing plans, along with a selection of unlocked phones. Typically, financing contracts are established through one of the provider’s partner companies or associated carriers.
In Canada, a huge part of the population are iPhone users. The only problem is that iPhones, particularly the latest versions, can be very pricey due to their high quality. So, in partnership with a third-party payment service called PayBright, Apple can offer you:
Like many other cell phone providers, Samsung offers financing deals on associated products. However, financing comes in the form of a revolving credit line, loaded onto your Samsung account. With this type of credit, you can access the following:
Keep in mind that Samsung Financing is only available for orders of $50 or more. Once you’ve created your Samsung Financing account, you’ll also get:
Many retailers sell in-house cell phone financing too. For example, Best Buy offers credit cards with 2-year promotional terms and 0% interest, while The Source offers PayBright, either of which can help you pay off your phone.
Provided by Fairstone, the Best Buy Card financing program gives users a variety of flexible financing options and payments plans on select in-store purchases, as well as:
Quebec residents may be subject to different rules, application conditions and fees when buying items through Best Buy card financing.
Similar to Apple financing, The Source uses PayBright for in-house cell phone financing, along with stress-free automatic payment plans of 12 and 24 months. All you have to do is select PayBright when you check out, apply for your account (which takes less than a minute and has a high approval rate), then confirm your order and finish your purchase.
Soon after, your cell phone will be shipped to your address or The Source location of your choosing. Here are a few other important things to know about PayBright financing through The Source:
Although a cell phone can be very expensive, there are plenty of ways that you can finance it affordably, if you know where to look. Just remember to do a lot of research and compare several sources before making your final decision. A cell phone is meant to be a valuable tool to improve your life, not a device that ruins your finances.
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