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After your lease ends, a charge will appear on your bill for the remaining purchase-option price of your device, plus taxes.

Leasing a smartphone offers the benefit of being able to upgrade to the latest models regularly without incurring contract fees. Keeping a smartphone at the end of a lease term may require paying a buyout fee to purchase it.

Prepaid cell phone plans don't require a credit check. That's because you pay in advance for your service, usually on a monthly basis, so there's no risk for the cell phone provider. The three major carriers ? Verizon, T-Mobile and AT&T ? offer prepaid plans, often for less than their traditional plans.

Leasing a phone is similar in concept to monthly installments, as you pay a specified amount per month?the main difference between the two is that you won't keep the phone at the end of a lease, whereas the phone is yours when paid for through monthly installments.

There's no minimum credit score to get a phone contract. Every network operator scores you differently?so even if one network won't give you a contract, you might have more luck elsewhere. Having bad credit doesn't stop you from getting a phone contract, but it might make it harder.

Go with a prepaid plan or carrier There's also a growing crop of budget carriers that offer only prepaid service, including Mint Mobile, Visible and Boost Mobile. Their plans are often cheaper, more straightforward and don't require a credit check since you pay upfront.

If your budget is tight, a payment plan can be a great option, but if you don't want to manage another monthly payment, paying for the phone outright will better fit your needs.