What's the difference between contract and no-contract cell phones?

When shopping for a new cell phone,

The first decision you'll need to make is determining the best plan type for you.

Advantages of a Contract Service Plan

Lower upfront purchase price.
Postpaid devices are often less expensive initially —in most cases hundreds of dollars below the true cost of the device —because the carrier subsidizes your purchase of the device.
The subsidy model enables the carrier to offer you the newest smartphone for $200 or less, rather than the full price of $600 or more if you were to purchase the phone on its own.

Easy path to upgrading your phone.
To retain you as a customer, a postpaid carrier will offer to subsidize the purchase price of a new phone at the end of your contract.

Access to a wider array of services.
With many postpaid carriers, you'll be able to select from a variety of add-on services, ranging from GPS-based turn-by-turn directions and family locator programs to unlimited music downloads and streaming TV channels.

Disadvantages of a Contract Service Plan

Hefty cancellation fees.
If you want to switch to another carrier before the end of your contract's term, you'll most likely have to pay several hundred dollars to break the contract.
(This is one way in which the postpaid carrier can make sure it recoups the subsidized price of the phone you purchased and discourage you from switching to another carrier.)

Requires a credit check.
Because you're signing up for a two-year contract that ties you to a subsidized phone purchase, postpaid carriers require a check of your credit history —and those with less-than-optimal credit may get rejected.

Activation fee.
A postpaid carrier typically charges between $30 - $40 as an activation fee when you first sign your contract.

Shop for Contract Cell Phones

Unlocked Cell Phones

An Unlocked cell phone is simply that: a phone that's not locked to a carrier's network.

In other words, you can choose your carrier and phone independently.

What Does Unlocked Mean?

Unlocked cell phones are compatible with GSM carriers like AT&T and T-Mobile as well as with GSM SIM cards (e.g. H20 and select prepaid carriers). GSM is a standard used by many providers across the globe as well.

An unlocked phone can recognize a SIM card from any GSM network and use that network to make calls, send messages, and other forms of data.

Unlocked devices do not come with subscriber contracts, which makes it a more flexible and practical option for many people.

Unlocked cell phones will not work with CDMA Carriers like Sprint, Verizon, Boost or Virgin.

Go Global

Unlocked phones are tied to GSM networks (like AT&T and T-Mobile in the U.S. and most cell networks around the globe), which makes switching subscriber identity easy as swapping your SIM card -- a removable smart card that resembles a memory card -- that is snapped into a phone and contains your subscriber information and phonebook.

Simply pop it out of your current GSM-based phone, transfer it to another GSM-based phone, and you can make and receive calls and text messages immediately.

Things to Consider

Despite the freedom offered by the transferrable SIM card, an unlocked phone might not be for everyone.

For instance, AT&T and T-Mobile currently use different radio spectrums for their 3G/4G networks, and a phone that's designed for AT&T's 3G/4G network will only be able to access the slower EDGE data network on T-Mobile.

Additionally, just like with phones from a prepaid carrier, you'll pay the full price for an unlocked phone (unlike locked phones which are subsidized and paid over 2 years).

But while the initial cost of an unlocked phone might be a hurdle, you'll get just the phone that you want and the freedom to move networks and carriers.

Shop for Unlocked Cell Phones

Bluetooth Headset Buying Guide

Choosing a Bluetooth headset can be difficult with the ever-growing choices of form and features. Whether you're enjoying music, commuting, or exercising, there's a device tailored for you.

Getting Started

The first thing to consider when shopping for a Bluetooth headset is how you will use it.

Bluetooth headsets come in all shapes and sizes, designed for communicating in various situations. One-ear headsets are best for discreetly and comfortably taking calls at work or home.

Two-ear headsets provide a tangle free way to listen to music and talk while you commute, exercise, or kicking back.

Choosing Features

Selecting a Bluetooth headset with the right features is tricky because features vary by brand. Fortunately, We have thousands of product reviews and answered customer questions.

Important things to consider are battery life, noise cancelation, and weight.

Alongside these features, our editors have assembled a detailed list of important features.

The Bottom Line

Going hand-free is the way to go.

Straining your neck, untangling earbuds, and juggling a phone in your car can be easily avoided with one of our best-selling Bluetooth headsets, many of which are priced under $50.

Shop for Bluetooth headsets

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