How to Save $500 on Your Cell Phone Plan

You won’t get low-budget cell service when you go with a budget provider. The reason? AT&T, Verizon, and T-Mobile spend big money to maintain their wireless networks, and, to recoup some costs, they then lease use of those networks to smaller providers. So if you switch, you can expect to get the same coverage—just at a lower price.

Let’s say you’re not ready to leave the carrier you’re already using. Is there any way to shave a little something off your existing monthly fee? Cell phone bills are a bit harder to negotiate than other kinds of bills, says Brian Keaney, co-founder of the bill-negotiating service Billshark. The big-name providers enjoy such market dominance that they don’t have much incentive to haggle with you. They use the same pricing nationwide and do their best not to deviate from it.

If you do call your carrier to negotiate, tell the representative you want to cancel your service, he says. This gets the call elevated to the retention department. Once there, you can ask for a one-time credit for being such a loyal customer. After that, ask the rep to help you examine other ways to reduce your bill.

Typically, this involves downsizing your plan. When you first sign up, Keaney says, big-name providers often sell you on the priciest option, which includes perks you probably won’t miss, such as a stockpile of hot spot data that lets you get your laptop online by wirelessly connecting it to your phone. But you’re unlikely to need the most premium features. Consider whether a lower-tier option would still meet your needs.

Some providers also allow for mixing and matching within family plans: You might be able to save some money by placing one person in the highest tier with more perks, while another uses a lower tier.

And make sure you take advantage of all the no-brainer cost savings like enrolling in paperless and automatic billing and signing up for any available discounts, such as those for seniors, veterans, and teachers.

Before you begin comparing plans, it helps to know how much data you use each month and which of the Big Three networks provides the best coverage in the area where you live.

Find out how much data you need. Premium plans from AT&T, T-Mobile, and Verizon can serve up far more data than an average person actually needs, with some promising 30 gigabytes or more per month in mobile hot spot data alone. If you’re routinely connected to WiFi and you never use your phone to access internet service on your laptop, there’s no reason to pay for all that.

By contrast, budget providers give you a more reasonable range of options—anywhere from 1 gigabyte to around 20 gigabytes of total data a month—in addition to unlimited plans. Better yet, some allow you to add data on an as-needed basis, which can be helpful if you’re traveling and need more than usual. Ting, for example, lets you add a gigabyte of fast data for just $5 more and Google Fi has a plan that charges you $10 a month for each gigabyte of data you use. This lets you choose a less expensive plan and scale up when necessary.

To properly weigh the merits of those plans, you need to understand your typical data use. Fortunately, that information is readily available from your current provider. Your monthly billing statement lists data usage figures for each phone on your plan. And if you sign on to your account online, you can even see how much hot spot data you use.

You can also use your phone to see how much data you typically use.

On an iPhone: Go to Settings > Cellular, then scroll down to Cellular Data to see the total for your current tracking period. (Note: Scroll to the very bottom to see the Last Reset date; that’s when the tracking period began.)

On an Android phone: Go to Settings > Network & Internet > Data Usage.

Both options break the data totals down by app, too, helping you identify the data hogs (social networking and streaming apps are usually the main culprits). To keep costs down, turn off the cellular data for apps you rarely use, and download podcasts and playlists to your phone instead of streaming them.

Premium plans from both big and small carriers also offer more high-speed data, which is helpful for gamers or those who love streaming high-definition movies. Once you’ve used up your fast data allotment, you can be slowed down to 2G speeds, which are fine for certain basic activities but less so for data-intensive applications. So think through your family’s needs. If you mostly use your phone for checking email, texting, and scrolling through Facebook while connected to WiFi, you likely need only a few gigabytes of data and can skip those premium data offers.

Pick the best network for your home. As noted earlier, MVNOs (smaller providers) piggyback on the wireless networks owned by AT&T, T-Mobile, and Verizon to provide service.

If you get great reception with your current provider, it’s smart to choose an MVNO that runs on the same network. If you’re unhappy with the coverage in your area, look for a better alternative by asking your neighbors which service they use and whether they’re happy with it. AT&T, T-Mobile, and Verizon provide ZIP code-based coverage maps on their websites, but they don’t adequately identify the dead zones in certain spots.

Once you know which network is most reliable in your neighborhood, it’s easy to determine which MVNOs make the most sense for you. Consumer Cellular and Cricket run on AT&T’s network, Mint Mobile and Google Fi run on T-Mobile’s, and Ting runs on both T-Mobile’s and Verizon’s networks.

A few budget providers are actually owned by a major carrier. For instance, AT&T owns Cricket, T-Mobile owns Metro, and Verizon owns Visible. But as you can see from the ratings, the customers at smaller carriers still tend to be more satisfied.

Consider perks and discounts. Certain premium plans offer additional benefits, such as streaming services or cloud storage at a discount. Cricket, for example, includes a subscription to Max (with ads) in its $60-per-month unlimited plan, which might allow you to cancel your streaming service.

Providers may also offer discounts if you agree to less frequent payment schedules. Mint Mobile, for example, has three-, six-, and 12-month bundles. You can pay $360 up front for the year (which breaks down to the equivalent of $30 a month).

If you plan to bring your phone number with you, don’t cancel your current service until you’re enrolled in a new one. The sign-up process is fairly simple. In fact, a customer service rep from your chosen provider can quickly walk you through it over the phone. If you’d like to bring your phone with you, too, here are a few things to consider.

Is your phone paid off? If you’ve been paying monthly installments to your carrier, you’ll need to settle up before you can switch services.

Is your phone unlocked? This allows you to use it on another network. A service provider is required to unlock your device from its network—either remotely or in person—as long as the device is paid off and your account is in good standing. You can check your phone’s status yourself.

On an iPhone, head to Settings > General > About, and scroll down to "Carrier Lock." It will say either "SIM locked" or "No SIM restrictions."

On a Samsung Galaxy phone, go to Settings > Connections > Mobile Networks, then Network Operators. From there, toggle off "Select Automatically." If multiple network choices pop up, your Galaxy phone is probably unlocked.

Is your phone compatible with your new provider? Most of today’s smartphones can work on any network as long as they’re unlocked, but you can still confirm compatibility by entering your device’s IMEI—a unique number found in your phone’s settings—on a provider’s website or by asking a customer service rep.

Does your phone use a digital or physical SIM card? You’ll need to activate a SIM card for each phone on the new plan. Most models now use digital eSIM cards, which can be activated remotely by the new carrier. Some phones still require a physical SIM card, which you insert into a small slot on the device. The new carrier can mail it to you or have you buy one at a retailer like Best Buy or Target.

With those items addressed, you’re ready to activate service with your new provider. With most budget carriers, you can easily do this on the company’s website or over the phone with the help of a customer service agent, who will set up your new account. Expect to have your new line up and running within just a few minutes. And you’re now set to reap the rewards—hundreds of dollars in savings and maybe even better service, too.

These low-cost options from our highest-rated providers can fit your unique needs—offering hundreds of dollars in savings per year compared with the Big Three cell companies. The prices listed here are for a single phone line.

If You Don’t Use Much Data and Want to Save Big: Mint Mobile
• $15 a month
• 5GB of data (offered as a 12-month plan)

If You Need Unlimited Everything: Ting
• $45 a month
• Unlimited calling, texting, and data

If You Want a Plan That Offers More Flexibility: Google Fi
• $20 a month
• Plus $10 more for each gigabyte of data you use

CR’s Top-Rated Provider for Overall Satisfaction: Consumer Cellular
• $50 a month
• Unlimited calling, texting, and data

For Satisfying Service and Fun Extras: Cricket
• $60 a month
• Unlimited data and included Max subscription (with ads)