Cricket and MetroPCS Offering Handset Financing
Cricket Wireless and MetroPCS have both begun offering handset financing programs that allow customers to pay off cell phone purchases over time. Both companies are working with a firm called Progressive Finance, which pays the carrier for the handset and then collects payments from the subscriber for their phone. According to Cricket Wireless, its financing program will cover up to 90% of the cost of a handset and then allow customers to pay for it over a maximum of nine months. Leap's Tyler Wallis, senior vice president of marketing and product development said, "We're really excited about it. Consumers are really excited about our rate plans, but they're struggling with the fact that an iPhone 5 is $500 upfront." MetroPCS did not provide details concerning its financing plan. In either case, the financing company does not perform a credit check. Cricket Wireless and MetroPCS do not require contracts. T-Mobile USA recently announced the end of device subsidies. Its program works differently in that customers make a downpayment on the cost of their cell phone up front and then make a monthly payment for it to T-Mobile throughout the life of their service contract.
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