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Device Savings Credit, also known as Agreement Credit, is a financial incentive offered by wireless carriers to entice customers into signing a long-term service agreement. The credit is often used to offset the cost of a new device purchase and can save consumers hundreds of dollars over the course of their contract.

In exchange for the credit, a customer agrees to remain with their wireless carrier for a certain period of time, usually two years. If the customer breaks their contract early, they may be required to pay back a prorated portion of the device savings credit.

While the savings credit can be a great way to save money on a new device, it’s important to carefully consider the terms of the agreement before signing on the dotted line. Here are a few things to keep in mind:

1. The Credit is Only Available with a Service Agreement

In order to receive the device savings credit, you must sign a service agreement with your wireless carrier. This agreement typically requires you to remain with the carrier for a specific period of time, usually two years. If you cancel your service before the agreement is up, you may be required to pay back a portion of the savings credit.

2. Not All Devices are Eligible

Some devices may not be eligible for the savings credit, so be sure to check with your carrier before making a purchase. Additionally, the amount of the savings credit may vary depending on the device you choose.

3. The Credit Can be Limited

In some cases, the amount of the savings credit may be limited by the carrier. For example, they may offer a maximum credit of $200, even if the cost of the device is more than that. Be sure to read the fine print of the agreement to understand any limitations on the savings credit.

4. The Credit May be Spread Out Over Time

The device savings credit may not be applied all at once. Instead, it may be spread out over the course of your contract. For example, you may receive a $10 credit each month for 24 months. Be sure to understand how the credit will be applied before signing the agreement.

In conclusion, device savings credit can be a great way to save money on a new device, but it’s important to understand the terms of the agreement before signing up. Be sure to read the fine print, understand any limitations, and consider the commitment of a long-term service agreement before making a decision.