Where Can I Finance a Phone? A Breakdown of Options

Acquiring a new smartphone often involves a significant upfront cost. Phone financing offers a practical solution by allowing individuals to spread the device’s cost over an extended period. This makes higher-end smartphones more accessible. Various entities provide these financing solutions, each with distinct structures and terms.

Carrier-Specific Financing Programs

Major mobile service providers commonly offer installment plans that integrate the phone’s cost into a customer’s monthly bill. These plans spread the device’s retail price over a set duration, often 24 or 36 months, with the payment added to regular service charges. While the phone cost is distinct from the monthly service fee, both appear on the same bill. This arrangement requires a credit check, as the carrier extends a loan for the device.

Customers selecting this option agree to terms that often include provisions for upgrading. Many programs allow for an upgrade to a new device once a certain percentage of the phone’s cost has been paid off, commonly around 50%, or after a specific period, such as 12 to 18 months. To upgrade, customers trade in their current device, and the remaining balance on the old phone may be covered by the trade-in value or promotional credits on the new device. Some carriers may also offer $0 down payment on devices for well-qualified customers, subject to credit approval.

Retailer and Manufacturer Financing Options

Beyond mobile carriers, consumers can finance phones directly through large electronics retailers and the phone manufacturers themselves. These options are distinct from carrier plans, providing more flexibility regarding carrier choice since the phones are unlocked. Retailers like Best Buy offer financing through store-branded credit cards, such as the My Best Buy Credit Card. These cards may feature special financing promotions, including 0% Annual Percentage Rate (APR) for a limited period, often 12 to 24 months, on qualifying purchases. However, interest can be deferred, meaning if the balance is not paid in full by the end of the promotional period, all accrued interest from the purchase date may be charged.

Phone manufacturers like Apple, Samsung, and Google also provide their own direct financing programs. Apple, for instance, offers Apple Card Monthly Installments, allowing for 0% APR payments over 24 months on iPhones and other products, and the iPhone Upgrade Program, which partners with a financial institution for monthly payments and annual upgrade options. Samsung and Google similarly offer direct financing, with options for monthly payments, sometimes at 0% APR for varying terms. These manufacturer and retailer programs involve a credit application and approval process, similar to traditional credit lines. Many also partner with third-party payment solutions like Affirm, allowing customers to pay over time with transparent terms.

Third-Party Lending and Lease-to-Own Programs

For consumers seeking alternative financing, independent financial companies offer third-party lending and lease-to-own programs. These solutions are accessible to individuals with diverse credit histories, as they do not rely solely on traditional credit scores for approval. Companies like Progressive Leasing, SmartPay, Snap! Finance, and Acima specialize in providing financing or leasing agreements for consumer goods, including smartphones.

In a lease-to-own arrangement, the third-party company purchases the phone and then leases it to the consumer, who makes regular payments directly to the leasing company. Ownership of the device transfers to the consumer only after all scheduled payments are completed, which can result in a higher total cost than an outright purchase. While some programs advertise “no credit needed,” they review other financial data, such as banking history, employment, and income, to assess eligibility. These programs can provide a pathway to acquiring a smartphone when other financing avenues are unavailable, with flexible payment schedules like weekly, bi-weekly, or monthly options.