If you've been with your current phone carrier for years, switching could help you save money or get you better service. The process is also simpler than it used to be. Thanks to FCC rules on number porting, you can usually keep your existing phone number when you move to a new carrier.
Long-term contracts are less common today, so you may be able to switch without paying an early termination fee. If you still owe money on your device, some carriers offer promotions that help cover part or even all of your remaining balance.
Even though switching is more straightforward now, it is still worth taking a closer look at the details to make sure the move makes financial sense.
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Check your device payoff balance
If you're financing your phone, your contract is likely tied to your device rather than a traditional service agreement. Many carriers now spread the cost of a phone over 24 or 36 months, which means you're paying it off in installments as part of your monthly bill.
Because of this, your device may not be fully paid off yet. If you switch carriers before the end of your term, you could be responsible for the remaining balance. On top of that, any promotional credits you're receiving, such as discounts tied to a trade-in or a "free phone" offer, typically stop when you leave. That can turn what looked like a good deal into a more expensive exit.
If you’re thinking about switching, start by logging into your account and checking your device payoff amount if there is one. Knowing exactly what you still owe will help you compare offers more accurately. If the balance is high, it may make more financial sense to stay put a little longer and pay it down before making a move.
Understand what happens to promotional credits
Many carrier deals rely on monthly promotional credits to lower the cost of your phone or service. These credits are typically spread out over the length of your agreement, which means they only apply as long as you stay with the carrier.
If you switch before the term ends, those credits usually stop. That means the "free phone" you signed up for may still have a remaining balance, and any trade-in credits you received may not carry over.
This is one of the most common switching surprises. Phone promotions are often structured to reward customers who stay for the full term, so leaving early can reduce the value of the original deal.
Paying for your phone in installments can be a practical option, especially if you're upgrading multiple lines at once and want to avoid a large upfront cost. Spreading payments out over 24 to 36 months can make higher-end devices more manageable from a cash-flow perspective.
Compare your real monthly cost — not the advertised price
When comparing your current plan to a new carrier, focus on what you actually pay each month, not just the advertised price. Promotional rates often leave out key costs, so your real monthly bill may be higher than it appears.
As you compare options, consider how these factors affect your total monthly cost:
- Autopay discounts: Enrolling in autopay can lower your monthly bill with a recurring discount, but the advertised price often assumes you have autopay enabled.
- Taxes and fees: Promotional prices usually do not include taxes and fees. Check your current bill to see how much these add to your monthly cost.
- Line access charges: Some carriers charge a line access fee for each line on your plan. This may appear as a Federal Access Charge or Customer Line Charge and can increase with multiple lines.
- Insurance add-ons: Phone insurance is typically billed monthly and can add about $8 to $20 per device to your total cost.
- Streaming bundles: Bundled streaming services can offer value, but they still increase your monthly bill, especially after any promotional period ends.
Test coverage in your ZIP code
When you switch carriers, you may also be switching networks. AT&T, T-Mobile and Verizon operate the largest networks in the U.S., but coverage can vary widely depending on where you live.
In cities, networks are typically strong and offer faster speeds. In more rural or less populated areas, coverage may be less reliable, which can lead to dropped calls or slower data.
Lower-cost prepaid or pay-as-you-go plans can be appealing, but they often come with tradeoffs. During times of heavy network use, prepaid customers may be deprioritized, which can result in slower data speeds.
Before making a switch, review carrier coverage maps for the places you use your phone most. It can also help to ask neighbors or coworkers who live nearby which network they use and whether they are satisfied with the service.
Make sure your phone is unlocked and compatible
Many carriers offer discounts when you bring your own device, but your phone must be compatible with the new network. Older phones may not support all 5G bands, which could limit performance or require you to upgrade.
There are also differences in how phones connect to a network. Some older devices rely on physical SIM cards, while newer models use eSIM technology that can be activated digitally.
Before switching, use the new carrier's compatibility checker to confirm your phone will work on their network. If it is not compatible, be sure to factor the cost of a new device into your decision.
Evaluate prepaid vs postpaid plans
Prepaid wireless plans cost less than postpaid plans, but they have fewer perks. Most prepaid plans don’t include options for device financing, and you may experience slower data speeds during times of peak usage.
In contrast, postpaid plans often come with more perks and bundles, which can be particularly important if you need to buy one or more devices when you switch carriers. If you want a new phone more often, a postpaid plan with frequent upgrade options might make more sense.
Review your international and travel needs
Think about how often you travel or make international calls, and whether your current plan meets those needs. Coverage and roaming policies can vary widely by carrier, and not all plans include international perks like calling or data use in Canada and Mexico.
If international access is important to you, compare what each carrier includes and what costs extra. Some plans offer built-in international data or discounted roaming, while others charge higher pay-as-you-go rates.
If the carrier you are considering has limited international options, a travel eSIM can be a flexible alternative. Travel eSIMs are becoming more widely available and let you add data coverage abroad without changing your primary plan, often at a lower cost than traditional roaming fees.
Time your switch strategically
If you decide to switch phone carriers, it’s important to carefully time that switch. You can avoid early termination fees by switching at the end of your billing cycle, and you might be able to take advantage of an appealing new phone offer if you switch during a major phone launch.
Monitor holiday promo cycles, too, since carriers often offer appealing deals during holidays like Black Friday or the Christmas season. Some carriers may offer the chance to bundle your mobile service with your home internet, which can help you save on both services.
Switching phone carriers is much simpler than it once was, and if done strategically, switching carriers might save you money and help you get a service that’s a better fit for your lifestyle.
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