Bill-credit forfeiture: the clauses that void your carrier promo credits
Early payoff, plan changes, downgrades, line cancellations, port-outs — which everyday moves can stop your bill credits, what it costs, and how to protect yourself in writing.
Updated 2026-09 · rules as of 2026-09
The mechanics of a bill-credit promo
A '$1,000 off' carrier promotion is almost never $1,000 off. It is an installment plan at full price plus a monthly credit stream — typically over 36 months. The credit posts on each bill only while every condition stays true: the device stays active and financed on your line, your plan stays on the qualifying tier, the account stays in good standing.
That is why the advertised number and your real number differ: the promo is a bet that you will stay put for three years. The engine behind this site prices that bet explicitly instead of hiding it behind an asterisk.
The five moves that commonly void remaining credits
- Paying the device off early — the most counterintuitive one: you pay MORE to own the phone outright, because un-posted credits stop on payoff.
- Changing your plan, including 'upgrading' to a cheaper-for-you tier the promo doesn't cover — the credit stream is plan-locked.
- Downgrading the plan you had to switch to, to get the promo in the first place.
- Cancelling the line or moving the device to another line that isn't eligible.
- Porting your number out — credits stop and the remaining device balance accelerates.
The plan-tier NPV trap
Community reports during the September 2026 window included a '+$800 credit' offer that required moving to a plan costing roughly $250/month more — at that rate the 'credit' is repaid to the carrier long before month 36. Whenever you evaluate a promo, subtract (plan delta × months you must keep the plan) from the credit total before comparing anything.
Our four-path engine does this arithmetic automatically and shows it as 'extra plan spend over the lock', so the 'free phone' and the honest phone are priced on the same page.
How to protect yourself
- Before signing: send the promo-terms confirmation letter (included in the Upgrade Report) and get the answers in writing.
- Keep every bill: the credit either posts or it didn't — a ledger beats a memory.
- If a credit goes missing, dispute it in month one, not month six: the shortfall letter quotes the advertised terms and attaches your ledger.
- Screenshot the promo page the day you sign — amounts were still changing during the 2026 window.
Sources & confidence
Forfeiture terms as of 2026-09 are paraphrases of widely documented, long-standing carrier promo structures (confidence: high that these clauses exist; individual amounts vary by promo). Your installment agreement and the official promo page govern: https://www.fcc.gov/consumers/guides/early-termination-fees-and-switching-carriers (FCC guidance on switching and early termination) plus your carrier's deals page. Nothing here is legal advice.
Turn this into your numbers
The Upgrade Report applies these rules to your exact device, plan and timeline — with the danger list, the rule sources, and the letters to send before you sign.
Start the free verdictDisclaimer
Upgrade Decoder is a self-help calculator and document tool. It is not a law firm, financial adviser, or carrier, and nothing on this page is financial or legal advice. Savings are not guaranteed: every promo amount, plan price, trade-in and resale figure is a seeded example value as of 2026-09 (confidence labeled per row), and the carrier's official promo page and your own agreement always govern. Verify anything you rely on, in writing, before you sign.