What You're Actually Signing Up For When T-Mobile Gives You A Free Phone

Let's face it: while getting a shiny new phone is great, figuring out which carrier works best for you is a massive headache. And once that's out of the way, picking the right plan is its own nightmare. Companies like T-Mobile offer Go5G Plus with promises of "phone freedom" and other options that include a free phone, but what are you actually signing up for?

Surprising no one, "free" phones from any carrier aren't actually free, and T-Mobile is no different. The provider markets a free smartphone with no down payment when you add a new line, which, of course, you can pair with T-Mobile Magenta, Magenta MAX, or any of their other plans. The cost of that phone will still be on your monthly bill, but to offset it, T-Mobile gives you monthly credits equal to the price. This allows them to market the phone as "free," but it isn't really. Carriers no longer require you to sign a two-year contract for a similar deal, but the monthly credits you receive from T-Mobile coincidentally last 24 months (or two years).

If you stay with T-Mobile for 24 months, you will technically get the phone for free (outside initially paying the sales tax on the device). However, if you decide to switch carriers before your 24 months are up, though, T-Mobile won't forget about the amount left, forcing you to pay the remaining cost on your "free" phone.

Now that you understand how T-Mobile's free phones work, you may be wondering if it's a similar situation when you switch from another carrier. It may surprise you, but this can also net you a technically free phone. However, like the process above, this one comes with its own set of stipulations.

When you switch to T-Mobile from another carrier, you have the option of bringing your smartphone with you. Assuming your device meets T-Mobile's eligibility requirements, you get a new SIM card, and T-Mobile will pay off your phone's remaining balance. This process essentially gives you a "free" (or half-free) device on their network. Sounds great, right? The catch is that T-Mobile will only give new customers up to $800 per line (up to 5 lines) toward their device's remaining balance with the previous carrier. This might work for some people, with the $800 being enough to cover the rest of their costs. If they initially receive the phone from the other carrier for free, T-Mobile pays off the remaining balance, and they can enjoy a free phone on the new network.

However, if the $800 isn't enough to cover your remaining balance, you must pay the rest, regardless of whether you received the phone for free. Plus, T-Mobile gives you the $800 through a virtual prepaid card, so technically, you still have to pay off your phone yourself. Once again, the phone could be free, but the stars practically have to align for it to be truly free.