One of the more common questions people have when buying a phone that comes with 12 months free line rental is how these deals actually work. Are they really free? And how does the phone company make any money? This article will talk about some of the things that you need to be aware of before entering into 12 months free line rental deals.

Is a 12 month free line rental deal really free?

The first (and most important question) is whether these phone rental deals are actually free. One thing to be aware of is that you’ll still have to pay the mobile phone provider for your contract. The company you bought the contract through will then send you money to recover your payment. This means that you still have to pay the contract like any other phone but you get the money back.

How do they work?

The reason that mobile phone retailers do this is because they get paid a certain amount for every contract that they sell. The money they get comes from the mobile phone provider. The provider will fix the tariff for a particular contract and the job of the retailer is then to try and entice the customer to buy through them. Providing the contract for free for the first 12 months is a very good way of doing so!

Another thing that the retailer is banking on is that if you get a free deal you’re more likely to recommend their company to friends and family. Whether you do or not is entirely up to you but a lot of people do.

An important thing to remember is that the money won’t be sent to you automatically – you have to claim for it. This means that you need to be prepared to keep track of your bills on a monthly basis and then send them to the retailer in order to claim back your money. 12 months free line rental deals assume that many people are going to forget to claim for their money and hence won’t actually get it for free so you need to be very careful about this.