Early upgrade phone contracts: the best networks to join

Phone contracts based on finance let you upgrade early

If you’re the type of person that wants to stay free to upgrade to a new phone whenever you want, you’ll prefer finance-based phone contracts. These are where the network effectively gives you a loan to buy a phone off them.

These kinds of contracts let you pay off your whole loan whenever you like, to upgrade before the end of your contract. You won’t incur any early termination fees, as you just pay back what you owe for the phone.

Some networks let you upgrade at any point, while others will require you to wait a little while. Also, some networks let you leave your usage contract (mins, texts, data) after upgrading and others don’t.

In this guide, we go over all the networks that let you upgrade early and rank them based on which ones let you upgrade the soonest, which ones let you leave your usage (SIM) contract and which ones offer the best deals.

Useful link: Find the best deal with our phone comparison tool here

Joint 1st: VOXI’s early upgrade scheme is very flexible

VOXI are a sub-brand of Vodafone and despite being a lower-cost network, they offer the latest phone models on finance agreements. The great thing about these is that you can upgrade at any point during your contract.

Your loan will be managed via PayPal credit, not by VOXI themselves. So when you take your phone contract on VOXI you’ll be redirected to PayPal to sign the agreement. It’s just worth knowing before you sign up.

Once you’ve paid off the cost of your phone you can also leave your usage plan at the end of the month. This is because all VOXI’s usage plans are on flexible 1-month deals that you can switch or leave when you like.

The only downside is that you can’t easily trade in your old phone to clear your loan and upgrade that way. But you can probably get more money just selling it anyway. There’s a lot to like with VOXI’s upgrade scheme.

Useful link: How VOXI’s finance agreements via PayPal Credit work

Joint 1st: giffgaff also let you upgrade at any point

giffgaff are a sub-brand of O2 and also offer a very flexible upgrade scheme for their phone contracts. They have some of the best value phone deals of all networks too, with most of the newest models available.

Their finance-based phone contracts are made via a third party called Klarna. They let you pay off the entirety of your loan at any point during your contract, meaning you can upgrade to a new device whenever.

You can take either a 1-month or 18-month usage plan (SIM). giffgaff’s 1-month deals let you leave when you like, while their 18-month contracts tie you in for a longer time but still let you switch plans month to month.

We would caution that trading in your phone won’t necessarily get you as much for your device as selling privately would though. But Apart from that, giffgaff’s early upgrade scheme is among the best.

Useful link: How your finance agreement via Klarna will work

2nd: Tesco Mobile’s early upgrades offer brilliant flexibility

Like the networks above, Tesco Mobile let you upgrade at any point during your phone contract. They tend to offer good value on lots of different phone models, old and new. The SIM part of your deal’s well priced too.

There’s no way to trade in your phone to wipe away your loan, but that’s not a huge downside. Tesco’s scheme is very flexible and they offer even better value to Clubcard holders (read their guide here).

And Tesco give you the flexibility to change your usage plan each month. If you want more data in the middle of the month you can upgrade it right away, but moving it down will take a month to come into effect.

This is great as you can set your usage plan to your budget. And once your phone is paid off you’re free to leave your usage contract. But leaving before your loan is paid off will incur an early termination fee.

Useful link: Read our guide to Tesco’s Clubcard prices

3rd: Sky offer flexible upgrades after your first month

Sky are next on our list for the sheer value they offer on their phone deals and the flexibility of their usage contracts. They are the first network on this list where you can’t upgrade right away, only after 31 days.

In fairness, we can’t imagine most people will want to upgrade within the first month of getting a phone anyway. If you want the newer phone just join on that one. So this shouldn’t really be a deal breaker.

Sky are almost always the lowest cost option to join on a phone deal with no upfront costs. And their usage contracts let you switch your plan up or down each month so you can better suit it to your budget.

But you have to stay on your usage plan for your full contract. Also Sky let you trade in your phone to upgrade, but you can only do this in your last 12 months. Sky aren’t the most flexible choice, but are an excellent value option.

Useful link: Sky’s full guide to their upgrade scheme

4th: O2’s prices are often higher but you can upgrade early

O2 are the first of the main networks on this list. They offer flexible upgrade options on loads of phone models with their Custom plans. You can pay off your loan at any point to join on a new phone.

On top of that, O2 let you switch your usage plan up or down whenever. And your usage plan is on a monthly rolling contract, meaning once you’ve paid off your phone you’re free to leave O2 altogether.

The main downside in our eyes is the price. O2’s prices for their phones are decent enough but their more-expensive usage plans (SIMs) bump up the total cost of your deal above competitors.

O2 also have a trade-in scheme, but it’s only offered as a premium extra, not as standard. We go into it in more detail in a separate section below. Overall, O2 are a flexible option for upgrading early but always compare prices.

Useful link: O2’s full range of phone contracts

5th: Three now let you upgrade to a new device at any time

Three are another of the main UK networks and tend to offer the lowest prices of the four. They offer good value on phones and on usage plans that let you upgrade to a new device at any point during your contract.

They offer all the latest devices, which is great for upgrading. And you can trade in your old phone for money off a new one. This can be useful but you might be better off selling it elsewhere.

The main downside is that they don’t offer any flexible 1-month usage plans (SIMs), so once you’ve paid off your loan you’ll be stuck on your usage plan until the end. And you can’t switch to a smaller plan mid-contract.

Also, some of their phones are only offered on traditional 12 or 24-month contracts that aren’t based on finance, so have no early upgrade feature. It’s worth checking the device you want before joining, but otherwise Three’s scheme is decent.

Useful link: Three’s full range of phone contracts

6th: EE offer a good upgrade scheme but at high prices

EE are another of the main four UK networks. They offer lots of devices on finance agreements that give you the flexibility to upgrade at any point during your contract (they call it “Flex Pay”).

They’re partly this low on the list as their phone deals are some of the most expensive of all networks. The bigger the loan you have to pay off, the harder it is to upgrade to a new device.

And even if you do upgrade, you’ll still be on your usage contract for at least 24 months. There are no flexible 1-month plans and there’s no way to move to a smaller plan if you’re paying too much.

EE do offer a trade-in scheme, almost as a consolation for their high prices. This can get you some decent money off when upgrading to a new device, but we think you can get more for your phone elsewhere.

Useful link: EE’s full range of phone contracts

7th: Vodafone are a bit less flexible but worth considering

Vodafone are the last network on this list due to the fact that you can only upgrade after your second month on one of their EVO phone deals. But, we can’t imagine most people will want to upgrade that early anyway.

However, they are one of the most expensive networks for phone contracts. So even when you’re able to upgrade you’ll still have a lot more to pay off than on some of the networks above.

Once you’ve upgraded you’ll be stuck on your usage plan until your 24-month SIM contract is over. Again, Vodafone’s usage plans are quite expensive and there’s no way to move to a smaller plan during your contract.

You can trade in your device to get money off your new phone or get it put right into your bank account. Vodafone are decent choice if you want to upgrade early, they’re just behind the other networks for this.

Useful link: Our full review of Vodafone’s network and benefits