---
title: "The New AT&T Phone Payment Plans: What You Should Know"
description: Starting June 9, AT&T will only have two options for financing a mobile phone.
---

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# [The New AT&T Phone Payment Plans: What You Should Know](https://credit.com/blog/the-new-att-phone-payment-plans-what-you-should-know-145525)

 Written by [Constance Brinkley-Badgett](https://credit.com/blog/author/constance-brinkley-badgett) | May 24, 2016 4:25:57 PM

AT&T is cutting its plans for financing a new mobile phone in half, giving customers just two options when it comes to buying a new phone without plunking down a wad of cash all at once.

In a nutshell, the plans boil the decision-making process down to two questions: Do you want a lower monthly payment or would you prefer a quicker upgrade? If you're torn already, it might be a good time to review your budget and see what fits with your finances.

Starting June 9, [AT&T will offer AT&T Next Every Year](http://about.att.com/story/att_simplifies_smartphone_purchase_and_upgrade_options.html), which allows customers to upgrade to a new device every year, with a 24-month financing term. The second option available beginning on the same date is the AT&T Next plan, which allows customers to upgrade every two years with a 30-month financing term.

## **Side-By-Side Cost Comparison**

AT&T offered the following cost comparison between the two financing plans:

**AT&T Next: **$749.99 retail price phone is $0 down and $25/month, or $225 down and $17.50/month

**AT&T Next Every Year**: $749.99 retail price phone $0 down and $31.25/month, or $225 down and $21.88/month.

[embed width=650 height=365]https://www.youtube.com/watch?v=UlMh604HhsI[/embed]

The new plans also allow customers to trade in any device they own and apply the value toward a new device or make a [down payment](https://www.credit.com/loans/mortgage-questions/how-to-determine-your-down-payment-on-home/) toward a new device at the time of purchasing the plan.

Here’s how it works, per AT&T's press release.

**AT&T Next Every Year**

- **Primary Benefit:** New device every year
- **Upgrade Eligibility: **12 monthly payments or 50% of retail device cost paid off and trade-in of eligible device
- **Pay Off Phone: **24 months

**AT&T Next**

- **Primary Benefit:** Lower monthly device payment
- **Upgrade Eligibility: **24 monthly payments or 80% of retail device cost paid off and trade-in of eligible device
- **Pay Off Phone: **30 months

Both plans are available for well-qualified buyers, meaning you're going to need a [good credit score](https://www.credit.com/credit-scores/#understanding-your-credit-score) to get these financing plans. If you don't have good credit, it's going to cost you more up front — customers who don't meet AT&T's "well qualified" standards will be required to make a 30% down payment.

If you're not sure where your credit stands, you can check out [two of your credit scores for free](https://www.credit.com/free-credit-score/) on Credit.com before applying and potentially being rejected. If your credit is in rough shape, you may be able to [improve your score](https://www.credit.com/credit-repair/how-to-improve-credit-score/) by disputing errors on your credit report, paying down high credit card balances and limiting [new credit inquiries](https://www.credit.com/credit-reports/tips-for-improving-your-credit-your-history-searching-credit-inquiries/) while your score rebounds.

### More Money-Saving Reads:

- [What’s a Good Credit Score?](https://www.credit.com/credit-scores/what-is-a-good-credit-score/)
- [What’s a Bad Credit Score?](https://www.credit.com/credit-scores/what-is-a-bad-credit-score/)
- [How Credit Impacts Your Day-to-Day Life](https://www.credit.com/credit-reports/how-credit-impacts-your-day-to-day-life/)

*Image: BraunS*

[View full post](https://credit.com/blog/the-new-att-phone-payment-plans-what-you-should-know-145525)

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