Verizon details its new device payment plan
Earlier this month Verizon positively commented on the idea of T-Mobile’s “uncarrier” initiative. Shortly after, a leaked document hit the net suggesting Big Red might be planning a similar option. Now it’s official. Starting today Verizon customers can purchase a device for full price without contract and spread that payment out over time.
Unlike T-Mobile’s approach, Verizon doesn’t seek to end contracts altogether. Those who want a subsidized handset will still sign the same old 2-year contract. Those looking for less commitment will have the option to go with a no-contract plan and buy a device through an installment plan that is spread out over 12 monthly payments.
As you’d expect, there are a few catches here. First, there will be a finance charge of $24, which comes to $2 per monthly installment. Additionally, Verizon’s device payment plan is only for tablets or smartphones with a minimum cost of $349.99.
Verizon also makes it clear that not everyone will qualify for this plan, as it will be subject to credit approval and other unspecified terms.
Is Verizon’s new payment option a good deal? Depends on who you ask. If you are a Verizon customer with unlimited data, it might be. Verizon has confirmed that the Device Payment Plan option will work for these customers. Additionally if you are the kind of person that buys a new phone every year, this could be what you are looking for.
Unfortunately – though not surprisingly – Verizon didn’t mention any price-reduced plans to go along with the contract-free option. Instead they mention that device payment plan customers can take advantage of Share Everything pricing and data sharing.
What do you think of Verizon’s new device payment option, interested or not?