Early Phone Upgrades: Are They a Good Deal?

If you’re someone who’s constantly trying to get your hands on the latest smartphone models, then early phone upgrades are made for you.

An early phone upgrade is when you trade in your phone before its installment contract is up, pay a certain percentage of the balance off, and start paying installments on a newer model. All three major carriers have some form of an early upgrade program, as do some prepaid carriers. 

If you’re someone who’s constantly trying to get your hands on the latest smartphone models, then early phone upgrades are made for you.

In this article, we’ll explain how early phone upgrade programs work, which carriers offer them, and tell you if they are worth it.

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How Early Upgrades Work

Most early phone upgrade programs work in generally the same way. 

1. Purchase a phone through monthly installment payments.
2. Make the required number of payments
3. Trade in your existing device (the phone you’re turning in typically has to be in at least “good” condition in order to do the trade-up).
4. The carrier waives the remaining balance.
5. Begin financing a new phone.

The argument for doing an early phone upgrade is the access it gives you to the latest devices. This is a perfect way to get your hands on the latest technology without having to wait 2-3 years, what with major carrier phone contracts lasting for 24 or 36 months. 

The downside is that you never really finish paying off your phone, and you end up making indefinite installment payments if you want the newest phone every year. 

Verizon Early Phone Upgrades

Verizon has a straightforward phone upgrade program that allows you to slip out of your current phone contract and upgrade to a new device. 

The rules are simple: pay off half (50%) of your current phone installment plan, and you can sign up for a new one upon purchasing a new phone. This option applies to all of Verizon’s myPlan postpaid plans, i.e. Unlimited Welcome, Unlimited , and Unlimited . 

All of Verizon’s phone contracts are 36 months, so if you want a new phone after a year, that means you’ll need to pay for an additional 6 months of installments before you can make the jump. To break that down, in theory you’ve paid for 12 months, and an additional 6 months brings you to 18 months of payments, which exactly half of Verizon’s 36 month repayment period. 

But that’s not the only way to upgrade: if you’ve switched to Verizon and signed up for Verizon’s Simplicity plan, 

Pros

• No extra fee—just pay 50% of your phone off and you can upgrade to a new one

Cons

• Since all of Verizon’s phone contracts go for 36 months, you’ll be required to pony up an additional 6 months of installments if you want to upgrade after a year with your current device

T-Mobile Early Phone Upgrades

T-Mobile has an early upgrade program available to those on the premium Experience Beyond plan, as well as the grandfathered Go5G Next plans. Like Verizon, the carrier requires that you pay off 50% of your device repayment before you can upgrade to a new phone.

In T-Mobile’s case, T-Mobile’s phone contracts are 24 months, so you don’t have to fork over extra money after a year—you’ve already met the 50% threshold after 12 months. This is marketed as the T-Mobile Yearly Upgrade benefit. 

Pros

• T-Mobile’s phone contracts go for 24 months, so if you are on a qualifying plan, you can upgrade at 12 months without having to pay for any extra installments on your current device

Cons

• You can only access T-Mobile’s early phone upgrade if you are on a specific premium-level plan—which doesn't come cheap. Experience Beyond, for example, costs $100/month for a single line. 

AT&T Early Phone Upgrades

AT&T offers early phone upgrades via its Next Up and Next Up Anytime programs. 

Next Up costs an additional $6/month, and allows you to upgrade to a new device after you’ve made 50% of your entire payments on your current device (AT&T’s phone contracts go for 36 months). 

Next Up Anytime, meanwhile, costs $10/month and allows you to upgrade to a new device after just one installment payment on your current phone. You can do a maximum of 3 upgrades within a 12 month period, and after paying off one-third of the device's cost, they become eligible for AT&T's best trade-in promotions while still having the remaining balance forgiven.

Pros

• Next Up Anytime is the answer if you like upgrading or switching phones on a frequent basis—the ability to upgrade three times within one calendar year is crazy. 

Cons

• There is a fee for both Next Up and Next Up Anytime above and beyond your cell phone plan cost. This may or may not make financial sense for you depending on how aggressively you plan on upgrading. 

Is an Early Upgrade Worth It?

Early phone upgrades are less about saving money, and more about giving you access to the latest smartphone technology. An early upgrade can make sense if you like having the latest technology, want access to new camera features, or simply prefer upgrading every year.

However, customers focused on saving money will usually get more value by paying off their device and keeping it for several years. Modern smartphones often remain fast, reliable, and fully supported long after their financing term ends.

Before you sign up for an early upgrade program, take a look at the monthly cost, any plan requirements, and the trade-in rules. Depending on the situation, you may actually save more by waiting until your phone is paid off before upgrading.

Final Thoughts

Early upgrade programs make it easier than ever to get a new smartphone every year. Verizon, T-Mobile, and AT&T all offer ways to upgrade before your device is paid off, but each carrier has different requirements and costs.

If having the newest phone is a priority, an early upgrade program can be a great option. If you’re looking to maximize value, keeping your device until it’s paid off—and beyond—will usually save you more money in the long run.