Originally Posted by sincarafan
The contracts only apply to their phone payment plans if you get one. If you buy through tmobile there are no contracts on the simple choice plans. If you cancel all you owe is your phone balance if you have one. Now if you buy elsewhere like walmart which still offer classic plans then yes you have to sign a 2 year deal because they are still using subsidizes and phone discounts.
That is still essentially a contract! You owe T-Mobile a 'balloon payment' for the balance of phone plus a $200 early termination fee. Even though you're signing up for their data rate plans which they call 'Simple Choice Plan'. There's no such thing as a contract free phone with the major U.S. wireless carriers unless you go buy a prepaid phone (e.g. Tracfone) and add minutes to it whenever you run low to extend your service contract.
Don't be fooled by T-Mobile's marketing.
They'll still run a credit score report on you even if you're buying the phone outright for $629.99. You may still be required to put down a security deposit plus down payment to activate a new line of service through T-Mobile, again all depending on your credit score! Even though T-Mobile CEO has thrown out the two-year contract verbiage you're still essentially signing an agreement and/or contract with T-Mobile for wireless service.
If it was truly a no contract
phone then there wouldn't be any need nor reason to obtain a credit score report or pay a penalty fee if a person decided to terminate the agreement early.