Verizon Decides to Only Offer 3-Year Contracts (2024)

It used to be the case that 12-, 24-, and 30-month phone contracts were widely available, but at Verizon, the only option starting Feb. 9 is a 36-month contract.

As Droid Life reports, Verizon is switching to just two options for customers when it comes to buying a new smartphone. The phone can be purchased outright, or the cost can be spread using a payment plan over a 36-month period. There is no other option or shorter contract terms available anymore, even for the cheapest handsets.

For a $1,000 phone, having the payments split over 36 months certainly helps and Verizon states there's no additional charge for doing this—you only pay back the cost of the phone. However, you can't increase the monthly payments. You either keep paying the set amount for three years, or you can choose to pay off what remains of the cost of the phone with a single payment.

The same rules are being applied to other devices Verizon sells, including tablets and laptops, smartwatches, and mobile hotspots. Droid Life also confirmed that there are no early upgrade offers being advertised by the company. It remains possible to trade in your current phone (after it's paid for) for a balance to use against a new device, help pay your wireless bill, or to purchase some accessories.

A contract lasting 36 months will make high-end phones appear cheaper for anyone opting for a payment plan. For example, the iPhone 13 Pro Max starts at $30.55 per month. However, it also places more importance on selecting a new phone that is guaranteed to receive regular security and OS updates for the next three years. Otherwise, you could be left paying for and using a phone that becomes increasingly outdated and less secure while stuck in a contract.