What does activation credit mean?

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What does activation credit mean? I'm looking to buy an s7 edge and it says it'll give me a 350$ activation credit with a large tab. What does it mean?? What does it do??
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Rakin Bhuiyan

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Posted 2 years ago

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Mathieu, Mobile Master

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Hi Rakin,

It's bassically a sale price on a phone. Kind of how walmart uses "Rollbacks", Koodo just uses "Activation Credit". The S7 Edge costs 1004$, A tab large allows you to take 504$ off of the phone to put on the tab. In this case, you would need to pay 500$ upfront to cover the price of the phone. However, with the 350$ activation credit (sale price) you only have to pay 150$!

Let me know if you still have any questions.
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Mayumi, Mobile Master

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It means if you buy an s7 edge on the Tab Large,you will save $350.
S7E is $1004 phone. But you will pay $$654 in total for it if you used Tab L:
You pay $150 upfront and put $504 on the tab. You will pay tab charge of $21/mo for next 24 month.

But you have to pick a plan from one of Tab L plan which start from $59/mo for 2GB data.
If you have a great plan already, you should compare if it worth to give it up to switch to Tab L plan.
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Sparky Isbest

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i still dont understand. i have a phone already and i want to buy a new one with their promotion online, does this mean i have to cancel my plan and renew it or something?
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Mayumi, Mobile Master

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What phone do you want to buy and what plan do you have?
Can you start your question using this link, please. We need more info to help you.
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Britanny Omanyundu

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I want an iphone 6 and it says 125$ in activation credits does that mean i have to pay 125$ and the monthly plan up front?? Im highly confused
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Mayumi, Mobile Master

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Retail price of iPhone 6 is $485
If you buy it on Tab M, you get $125 activation credit  >  Phone price is now $360 
There is no upfront price, only $15/mo tab charge will be added for 24 months
So, your monthly charge will be : Your plan + $15 Tab charge
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Does the words "You plan" means my existing plan with Koodo mobile or I have to take the mentioned plan in Koodo site as mandatory?
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Yes you can keep the plan you have with the appropriate tab that your plan qualifies for.
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Ryan Galt

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This seems like a deceptive pricing strategy.

All it means is the amount the phone is currently marked down from full retail before you pay an amount up front and then put a balance on your tab.  

By saying "includes X activation credits" at the end of the pricing description, it seems as if the customer will receive future credit, such as discounting on the monthly billing. Using the word "credits" implies future discounting. It really should not be mentioned (or it should be stated only as part of the sale price line) since the sale price has already been given at the top of the pricing description. Saying 'a price discount of X', rather than 'X activation credits' would be more transparent and clear.
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Allan, Mobile Master

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When you go into the checkout it displays all the discounts you receive and how they're applied.
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Mayumi, Mobile Master

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I don't think so.
For me :
"Includes $x in activation credit" makes me think "that's why price become $Y amount upfront"

Description even says "You'll pay $Y for your phone" on the first line.

If it's saying that you will receive activation credit on description, then it might confuse people.
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Yes, right
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Nicole Devos

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It really is. Since looking at the up-front price it already has the sale price, AND THEN it has this "activation credit" (which literally doesn't even imply it's a credit for a phone purchase - sounds more like those "activation fees" for setting up a new account)
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Shera Hope

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agreed! it is very confusing. cell phone companies are scammers tho :/ they don't have any real competition,so they don't have to try all that hard. the improvements from some phones is so minor,for such a large price, especially when the phone stops working after so many years because they stop releasing updates for those versions! it's basically a mini computer,so it needs to have updates and things done, by not continuing this for older models, it forces people to buy a new phone. there is a reason futurama got cancelled after their last few episodes....one being the eye phone lol.