When you sign a cell phone contract, you agree to a set period of time during which you will pay for the services provided by your carrier. However, circumstances may arise where you need to cancel your contract early. In this article, we`ll explore what happens when you cancel a cell phone contract.
1. Early Termination Fees
Most cell phone contracts come with early termination fees (ETFs). These fees are penalties for canceling your contract before the agreed-upon end date. ETFs can be significant, often costing hundreds of dollars, and are meant to discourage customers from canceling early. The amount of the ETF depends on the carrier and the terms of your contract.
2. Prorated Charges
If you cancel your cell phone contract in the middle of a billing cycle, you may be charged prorated fees for the time you used the service. These charges are calculated based on the number of days you used the service and are typically a fraction of your monthly bill.
3. Phone Payment Plans
If you purchased a phone through a payment plan and cancel your contract early, you may be required to pay off the remaining balance on your phone. The amount you owe will depend on your phone`s original price and how much you`ve already paid.
4. Losing Your Phone Number
When you cancel your cell phone contract, you may lose your phone number. This is because phone numbers are typically tied to the carrier you`re using. If you want to keep your phone number, you`ll need to port it to a new carrier.
5. Impact on Your Credit
If you don`t pay your early termination fees, prorated charges, or phone payment plan balance, your carrier may report the debt to a collection agency. This can negatively impact your credit score and make it harder to borrow money in the future.
In conclusion, canceling a cell phone contract can be costly and may have several consequences. Before canceling your contract, make sure you understand the terms and fees associated with early termination. If you`re unsure about the terms of your contract or need help canceling your service, contact your carrier for assistance.