Before You Buy a Cell Phone

30-Day Trial

If you're unsure about going with a particular phone or service provider, ask about a trial period. Almost all carriers, including the major providers and mobile virtual network operators such as Boost, Helio, and Virgin Mobile (see "Cell Phone Services for the Young, for Parents, and for Frugal Callers") offer a 30-day return policy (the trial period for T-Mobile is only 14 days, except in California, where it's 30 days). You pay for a phone and the activation fee up front, and receive a bill later for any voice and data services that you use. (Verizon's Test Drive program waives voice-call charges, but you still have to pay for data usage.)

A trial period is a great opportunity to test the quality of a carrier's call reception and data connection around your house, at your office, and in other places where you routinely find yourself. You should also check out your handset. Is it easy to use? Is its battery life satisfactory? Is typing comfortable? Are the buttons in the right places? How simple is the photo-sharing process?

If the trial leaves you unhappy for any reason, return the phone, get a refund for the handset and the activation fee, and move on to something else.

Contracts

With a contract, carriers subsidize the cost of the handset in order to collect two years' worth of service fees--and maybe swell their profits further by selling you extras such as text and picture messaging, or content such as games, ring tones, and music.

But being bound to a single carrier for one or two years may not be suitable if you move around a lot: The carrier you sign up with in one town may not have coverage in your new home.

Also, if you like to get a new phone every six months or so, a contract does not make sense: Canceling early typically incurs a $150 to $250 penalty, depending on the carrier. A compromise might be a one-year contract; it won't save you as much money on the handset, but you'll be able to get a deal on a new one once the year is up.

You might also be able to get out of an early termination fee by finding someone to take over your obligation. You can buy, sell, or trade wireless plans on sites such as Cellswapper.com and Celltradeusa.com. Sellers sometimes throw in a free phone or a cash incentive to sweeten the deal. If there's a match, Celltradeusa charges the seller $20, and Cellswapper charges $15. See "Mystery Cell Phone Charges" for additional information on these services.