T-mobile recognizes bad economy, wants to help!

T-mobile has caught on with the notion that the economy sucks and they want to help. Introducing the “Equipment Installment Plan” or EIP for short which will allow qualifying individuals to purchase the phone of their choice and pay it off in four monthly installments. Apparently, it seems right now that you can walk out of the store with no money down, and expect that first payment to charge to your next bill – a wonderful “tool” for the “buy now, ask questions and worry about how to pay for it later” kinda person. Soon, you will have no excuse NOT to buy the most expensive phone in the store, and breaking the news to your significant other that you bought YET ANOTHER phone should be a little easier.

Exciting, huh? Now for the nitty gritty details…

While paying four monthly installments may seem pretty straightforward and easy to calculate, it’s not a straight “the phone costs this, please divide by four” type of situation, rather, it’s only slightly more complicated than that. Out of what we know of the EIP as it is now, there will be a certain type of “credit limit” (if you will) extended to each customer, and either the difference between your credit limit and the purchase price of the phone is charged to your first bill -OR- the total purchase price divided by four monthly payments is charged to your first bill, whichever is GREATER. The other three monthly payments would equal the remaining balance divided by three and would all be the same. See? It’s not THAT bad. So, depending on your credit line, a $200 phone could potentially cost you $100 down or it could just cost $50, or something like that.

Even better, your “credit line” will increase with each monthly payment you make (exception: overpayments do not count towards credit line increases, sorry), so the more you use the Equipment Installment Plan then the cheaper your first down payment will be. Just be sure you pay at least the amount they calculate for your monthly payment (overpayments are not penalized) or else your account will be marked as “Delinquent” and nobody wants that.

On a final note, it appears that Flexpay customers will actually be able to participate in this, so it seems like all bases are covered. I would certainly urge anyone thinking of partaking in the installment plan to manage your finances wisely and not run out and purchase a phone only to find you can’t meet the monthly payment (say hello to Mr black-mark-on-your-credit-report) but certainly feel free to take advantage of it if you have the financial means.

Now, please don’t go calling customer care or running to your local store to see if they have this… it’s not out yet. You’ll know when we know.

Update: As far as we know, there is no APR for this at all. Just a payment plan split up over four months, nothing more.

  • Mack

    This is great!!!!!

  • Kaminsky

    cool when does this take effect

  • T1 Connect

    sweet deal right now do existing customers qualify for this deal let me know someone that works for tmo or site admin.

  • money69

    This is common in other countries, i.e. Mexico for example, seems like a good plan and Im glad to see another option for consumers.

  • Kellic

    This is retarded. Did no one learn anything from the credit crisis? Live within your damn means people or we will simply have another repeat of this crap again in 5,10,20 years. Its called fiscal responsibility.

    PS- Yah and what is the interest on this credit? 10%, 20%, 30%?

  • greeneyedbandit tmo rep

    Won’t be available untill mid november but subject to change due to system changes

  • mingkee

    this would be good if you want to buy expensive phone, or buy phone in MSRP

  • Some Dude

    Yes existing customers can participate, as long as they have 6 months of tenure. Don’t quote me on the last part but I’m pretty sure. My only concern in all of this is people who have trouble paying their bills could get a little out of control. This is a great idea and will allow many customers to get the phones that they really wanted, and otherwise would not be purchasing. Kudos T-Mobile for striving to make wireless service more attainable for everybody and doing it responsibly (vs simply just lowering credit requirements which we know is not a wise long term idea)

  • Jack Bauer

    There is NO interest on this plan. (Did the training) and you make your first payment upfront. And flexpay can participate only if they’ve had service for 12 months.

  • Brady

    If you can’t outright pay for a phone you probably shouldn’t get it. Just another way the sales force can pressure you.

  • detour

    EIP is available to most T-Mobile customers. Based on your tenure and credit score you can be able to get as much as $500. (max amount) of equipment on the installment plan. Note if you want $600. of equipment and qualify for $300. you will need to pay the difference up front. This is based on what a close friend has informed me related to the EIP.

  • J-Hop2o6

    I like this idea (if your paying full MSRP)

  • Tmo Android

    @Brady
    You are so wrong. This allows people to get the phone they want and that will fight them the best, not the cheapest phone. I can’t tell you how many times that I’ve had people get a super cheap phone because they can’t afford $200 right now. $200 over four months is a lot cheaper and most people could afford that.

  • Brady

    If you can’t afford the phone then get a 10 dollar pay as you go phone and save up for it. Credit is evil, END OF STORY.

  • http://www.myspace.com/kingomdavid gemaster34

    People shouldn’t even respond to Brady, cause their being flat out ignorant. I am so sick and tired of people that should be mature, coming on here, being very ignorant, about the obvious.

  • Rommel

    Its called-ghetto rich,hehehe….

  • mrssherico

    Does this payment plan only work on full price or does it apply to upgrades?

  • jdslim

    I work for T-Mobile and I was trained on EIP. It can be used on upgrades and accessories over $20. Its not a loan it doesn’t cost you anything extra to use it. It doesn’t charge anything to use it and in an effort get this point across T-Mobile won’t charge the standard upgrade fee of 18.00 if upgrade through customer care. The total amount you can pay is depended on your initial credit rating when you activated your account. You credit rating states how many phones you can have on your account a swell the total amount your account is allowed for EIP. Each phone line can get an upgrade but the total allowed for EIP is not per line but is for account, so can’t go ahead and upgrade all you phones at once and expect to pay it off on installments.

    I know not every T-Mobile rep got training on this yet so I want to let our reps know that employee account can’t get EIP for our upgrades since we don’t have need any type of credit rating to get our employee accounts

  • jdslim

    I work for T-Mobile and I was trained on EIP. It can be used on upgrades and accessories over $20. Its not a loan it doesn’t cost you anything extra to use it. It doesn’t charge anything to use it and in an effort get this point across T-Mobile won’t charge the standard upgrade fee of 18.00 if upgrade through customer care. The total amount you can pay is depended on your initial credit rating when you activated your account. You credit rating states how many phones you can have on your account a swell the total amount your account is allowed for EIP. Each phone line can get an upgrade but the total allowed for EIP is not per line but is for account, so can’t go ahead and upgrade all you phones at once and expect to pay it off on installments.

    I know not every T-Mobile rep got training on this yet so I want to let our reps know that employee account can’t get EIP for our upgrades since we don’t have need any type of credit rating to get our employee accounts

  • cupcake

    good for tmobile! do you have to request it or does it automatically apply? and for those who think it is an awful thing, keep your comments to yourself and do what you do. this is great for those who want a better phone. they know what they can afford to pay so stay out of everyones pocket.

  • Tony

    This might be stupid to ask but there might be a magic possibility- will this be available with FlexPay in any way?

  • Andréa

    @Tony- Can you NOT read??????? they have said it works with flexpay, and some else said you have to have a 12 month tenure

    Now I think this is great, I have been working extra to pay for the g1s and would love to be able to stretch it out over time, it is not credit and it is still being payed for in a timely fashion. I put money in my savings as a type of nest egg not for an allowance to buy phones… although when the G2 comes out next year it might be nice to pic it up without any excuses

  • kickstar13

    this is awesome nice to know our fav carrier is helping us out =]

  • Michael

    Make sure everyone is aware. The first payment is due the day your in the store. I just wanted to make sure everyone knows that they will not be able to go into a store and walk out with a phone and/or accessories with no money out of pocket. The first payment of the four payments is due the day you set up the plan.

  • moo

    @Brady

    I can understand your concern. I live like no one else so late3r I can live like no one else. But there is NO apr. It actually does not report to credit agency just like your service dosent unless you go into write off status. Plain and simple this is almost like layaway but you get it now. the prices are NOT increased, we dont rerun your credit its just a tool to get people the equipment they want. I feel you on the no credit thing way to be watching

  • bill

    I think this is an awesome idea because customers ask me about payment plans for phones all the time. However, I do kinda agree with Brady in that it will ultimately convince many people to buy a phone they otherwise wouldn’t buy. But thats a small minority and if they screw up their bill, it will be only their fault

  • Tom

    Nice of TMOBILE, if I am under my mom and am still under my contract, can I get EIP transfer the contract over to my account without breaking the contract? Please let me know asap thanks Tom

  • http://www.flickr.com/photos/highdef/2962645016/sizes/l/ OrificeOfObscenity

    Makes sens so you don’t have to pay 386 for an G1 after tax with a 2 year contract.

  • suprtong

    i agree with brady… credit card companies are evil with there high interest rates they charge people which force many into bankruptcy ,but i also agree with most other people here ,t mobile isnt out to screw there customers by charging 28% interest they arent going to charge anything just the cost of what you buy,better to do it tmobiles way with no interest then with a credit card …..so 2 thumbs up for tmobile……….

  • eliza

    Hi guys!
    Release date; not too sure,
    it iS 4 easy payments, BUT, 1/4 of it IS due at time of activation/purchase/etc.
    you can also add accessories, total just has to be more than 20 bucks.
    there IS a tenure needed for the EIP, and its only available for flexpay annual contracts, and regular postpaid.
    also, ive seen the limit go as high as $400, and as low as $100, also dependent on tenure.
    any questions, feel free to ask!

  • eliza

    btw; it automatically comes up, but definitely remind a customer rep about it if anything.
    and it IS a 12month tenure for flexpay.

  • eliza

    OH! last one, i PROMISE!! lol.
    no APRs, this is not a credit payment plan BY ANY MEANS!

  • T-mobile Anonymous

    Well this will be available for employees soon, not just yet. Credit limits go as high as 600 bucks for credit A and B customers, and go as low as 100. Dependent on credit class (like said before).

  • http://www.octechnophile.com david amodt

    Went into a T-Mobile store in orange county and asked about this. The guy behind the counter knew about it but didn’t know when it would launch. The other girl called CS and they said it was held back and no date of launch known. Too bad, sounded like a good idea.

  • *Ashley*

    Yay! I was informed by a Tmo rep EIP begins Nov 14th.

  • Pot Roast

    This is also nice for clumsy people that drop their BlackBerry Curve into a fish tank. *blush*

  • westsidebb

    sounds like something good people will take advantage of. i know i have bought many phones at full retail price bc i had to have that new toy.

  • Nails

    11/14 will be perfect. Can someone else confirm? (just want 2 sources)

    Plan to use it for the Behold and save my full discount (which is 2 months away) for when T-Mobile offers great hardware to go with the Android OS.

  • deelovely

    i was just told by a rep that its been pushed to the 17th

  • http://watchtoystory3movie.net/ Myrtie Broers

    Hehe , I just love it to see how many fans toy story has!!!

  • Mahue49

    You can buy phone right away for $99.99 or pay it off in 4 monthly installments of $50.00 for a grand total of $200.00. That’s $25.00 interest per month…suckers!!!

  • Indah_sk0308

    RIDICULOUS!!! I JUST FOUND OUT TODAY ON MY BILL THIS HIDDEN RIDICULOUS FEE!!!! I COULD HAVE NOT GO WITH T-MOBILE  WITH THIS RIDICULOUS PLAN & TRICK!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

  • Aplus

    T-mobile wants to help!? LIARS! They want your MONEY! I have been with this company for 10 years and it has worsened! In the last 3 years I have had to surprisingly find out from them, after they charged additional fees to my account, about some new fee that was not there before. I am not the type that don’t ask questions or read the fine prints either before getting into an agreement. They now have additional fees here and there for doing basically anything within their service, and they are quick to change the start date for your contract each time u do any change to the existing contract, so that if you start a contract for 2 yrs in February but in May u decide to get another type of phone with them or you do anything else a few months or a yr later, they will start u on another 2 yr contact rather than continuing w/ the initial contract date back in Feb. The 2 yr contact that you started with will end up lasting much longer. They will not refund you for their mistaken charges to your account or even as a courtesy, and when u finally decide to leave, they make it difficult to leave – they still try to milk you more before you can leave them by saying u have to pay for entire month if u canceled service on first day of new cycle. THIEVES! I liked their service at first but in the past few years it’s been nothing but hidden new fees here and there to do ANYTHING with their service. I do NOT recommend them to anybody and I am glad I finally left. Dealing with bad business is like poison in your life!