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.