We all have that smartphone we dream about every night. I drool over the iPhone 13 Pro Max. Yours could be an Apple, too, like me. Or it could be a Samsung, an LG, or a Lenovo.

Most times, we may not have the money to get these devices. And who can blame us? These things could go for as high as $1500 or more.

What can one do when one needs a smartphone desperately but can’t afford it? Fold their arms and cry through the night? Not in this age of cellphone financing.


According to Emilia Flores, the co-founder of UkBadCreditLoans, “Cell phone financing is the new normal amongst the Gen Z and Millennial generations. These guys no longer sit around and wait to save up to buy the phones of their dreams. They hunt for lenders with awesome cell phone financing deals.”

In this article, I will be talking about how you can get these smartphones while also building your credit.

Cell phone financing allows you to pay for these phones in installments. In some cases, you may be required to make a down payment, and in some cases, you might not need to.

Most times, before you can be considered or your application accepted, you might need to have a good credit score. This will allow them to process your application faster.

What is Cell phone Financing?

We know how smartphones can be expensive. That’s why cell phone financing is a better option. All you need to do is look for a company that is into the business. They could be merchants, cellular service providers, cell phone manufacturers, or purchase now, pay later platforms.

You should also understand that cell phone financing is different from leasing. You get the phone after completing the payment. For leasing, you will be required to return the phone to the company after some time.

Payment conditions can vary depending on where you buy the phone and how much you need to pay for the device.

Financing Options for Smartphones

Wireless company

When you buy a new phone from your wireless carrier, they may offer a range of installment plans and lease options.

You might be able to sign up for a monthly installment plan and pay off your phone without incurring interest over time. Some carriers may offer additional discounts if you pay for your new phone using a monthly installment plan.

Again, because the reduction is usually applied to your monthly account, switching carriers may result in you losing some of your savings.

You can also get an upgrade option from this wireless company, which means you can exchange your current phone to get a new one. You might also have to add some money to get these phones.

Lastly, when you begin one of these plans, you may be required to pay taxes on the whole purchase amount.


Samsung offers a credit line that you may use to buy phones, PCs, wearables, accessories, TVs, appliances, and other Samsung products. A revolving line of credit operates similarly to a credit card in that you can make loans, return them, and borrow again without going through the stress of applying again.

If you’re purchasing a phone, you may be eligible for a 0% annual percentage rate for up to 36 months. Each year, you can upgrade your phone and receive credit for the old one.

Note that certain Samsung financing solutions contain delayed interest instead of no interest.


Apple also gives cell phone financing to its consumers. Suppose you have the Barclaycard financing visa card or apple card. You can apply for cell phone financing.

The Apple Card offers 3% cashback on Apple purchases and may allow you to spread the cost of your new iPhone over 24 months without incurring additional interest.

The Barclaycard Financing Visa, another Apple alternative, offers deferred interest for six, twelve, or eighteen months, depending on the purchase price.


According to Emilia Flores, the co-founder of Techy10, “Apple products are amongst the most popular smartphone choice amongst the general populace. As of 2020,  iPhone has 86% of the market share.”

How Financing a Cell phone Affects Your Credit

Yes, it is true that financing a cellphone will have an impact on your credit score.

Before you are even given these cell phones, the company checks your credit to see if it’s okay. The subsequent hard inquiry may affect your credit scores. However, most hard inquiries result in only a modest drop that fades away over time.

But you can improve your credit score when you start paying the monthly installments on time. It could also affect it if you don’t pay on time.

Credit Building Alternatives

Making on-time credit card and loan payments is frequently the quickest approach to improving credit. However, new payment methods have made it easier to create credit in recent years.

You can also improve your credit by paying your monthly phone bills.

Is It Worth It to Finance a Phone?

I believe that cell phone financing is a better option. Even if you have the funds to get the phone, it is better to use it and keep the cash for something else.

Plus, if you wish to pay for the phone before the end of the payment plan, then you can go ahead with it.