Free telephone becomes loan. What does that mean for you?

You mustn’t have missed it: the particular “free” phone is no longer. Actually, the free telephone was never available. Because you simply paid off the phone via the monthly costs for the subscription. In fact, it has been an installment purchase. And today really. Because if you choose the telephone of more than € two hundred and fifty with a subscription that longer-lasting than three months, it is regarded as a loan. What does this imply to you?

Credit money, costs money. And exactly how much that is with a phone subscription, the telecom companies must tell you.

Borrowing money, costs money. And how much that is with a telephone subscription, the telecom providers must tell you.

Simply by stating the costs for the mortgage and for the mobile phone individually. This way you can better evaluate a subscription with minus a telephone.

BKR registration

Telephones that cost more compared to € 250 with a membership of more than three months are signed up with the Credit Registration Workplace (BKR). If you want to take out a brand new loan, the lender will always seek advice from the BKR to see when you have any more loans. The bank is going to take your telephone credit into consideration when determining your asking for capacity. This way the BKR protects consumers against over-credit.

More personal data needed for telephone subscription

To be able to provide a phone credit, telecom providers should comply with the Finance Begin Art (FSA). This means that they could only sell a phone and subscription if this is usually justified. That is why they will furthermore ask about your income to evaluate regardless of whether you can bear the month-to-month charges.

I simply briefly mentioned that a phone credit has an effect in case you apply for a loan or home loan. Very good, I think. But it also includes a downside. Because the mortgage store calculated that someone with the income of € twenty-five, 000 and telephone expenses of € 15 each month can borrow more than € 4, 000 less. As well as for a household with four phone loans and two earnings, this minimum amount improves as much as € 16, 1000.

I think — and hope – that individuals will look more critically in their telephone subscription.

Buying on payment is the most expensive form of asking for money.


A normal mortgage such as a Personal Loan or Constant Credit is often much cheaper. Therefore never blindly choose a phone credit, but compare the choices. And maybe we should just choose ​​for the old-fashioned sim-only thing more often.