Cricket Wireless has announced the availability of phone financing. That means easy payment plans for customers who want a new high end smartphone but don't have the cash in hand to pay for it. Depending on their credit worthiness, customers may be offered one or more of three payment options:
- Tier I: Finance a device with an initial loan payment of $19.99 and 0% interest for 24 months. This option requires approval through a standard credit bureau check, and accessories and tax may be included in the loan.
- Tier II: Finance a device with an initial loan payment of $19.99 and six-month deferred interest offer and 29.99% APR for an 18 month term. Customers pay no interest if the purchase amount is paid off within 6 months. If the loan is not paid off within 6 months, all accrued interest from the date of purchase is billed to the account. Monthly payments for this option are determined by the amount of the loan. This option also requires approval through a standard credit bureau check. Accessories and tax may be included in the loan.
- Tier III: This rent-to-own leasing option is equivalent to 90 Days same as cash. That means, a customer can purchase a premium device with $49.99 initial rental payment, pay the remaining balance in installments over a 90-day period, and not incur any interest at all – just like you paid for your device upfront. This option requires no credit check, but a third party may be used to verify financial information.
To me these financing deals only make sense if you are 100% sure you can pay off the loan during the interest free part of the financing plan (two years for Tier 1, 6 months for Tier 2 and 90 days for tier 3). You don't ever want to borrow money at a 29.99% interest rate.
Cricket has also extended its Free Month of Service offer until 4/30/15. It gives customers who port a number to Cricket and activate it on the $50 or $60 monthly rate plan a free month of service after completing two months of service. The offer is not available to AT&T customers, or Cricket CDMA customers.
If you are wondering when the Galaxy S6 will be available on Cricket and how much it will cost, Cricket still hasn't revealed those details. I expect we will see the GS6 within a week or two with a price between $650 and $700.
Source: Cricket Wireless