Joe Maring / Android Authority
TL;DR If Redditors prove accurate, T-Mobile is allegedly changing how trade-in credits are applied to reduce confusion and make billing more predictable.
Going forward, existing customers will now get all promotional trade-in value as monthly recurring device credits over 24 months.
New customers will likely still see a combination of recurring credits and instant credit.
As first noted by T-Mobile insiders on Reddit, T-Mobile is officially rolling out a shift in its trade-in values. Previously, there was some confusion about how trade-in credits worked, but the new changes bring needed clarity.
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Previously, new and existing customer trade-in plans would work by spreading all your credits out over a 24-month period, while others split the value between recurring device credits (RDC) and an initial one-time credit.
Going forward, all existing customers will receive all of their promotional credit via monthly RDC. There are a few reasons for the change. First, customers often were confused because they’d get a much smaller bill with a one-time credit, and then the next month it would go up again as the credits would be smaller. The new method is more predictable.
The other obvious reason is customer retention. Previously, you might get say $250 upfront and the rest in credits, so if you decided to leave after a few months, you’d have to pay off a lot more on your device before you go. Now you have more reason to stick it out longer.
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