How to trade in your phone: where to go, how credits work and what to avoid

Trading in a phone is easier than selling one: no listing, no strangers and no waiting for a buyer. The catch is that the offer you see can hide conditions, such as credits spread over three years, a required new plan or a condition check that lowers the price after you ship the phone. This guide shows the steps in order, compares where to trade in and explains how to tell whether a trade-in beats a private sale.

Where you can trade in a phone

How to trade in a phone, step by step

How phone condition is graded

• Like new or good: works fully, with no cracks and only light wear.
• Fair: working, with visible scratches, dents or a worn back.
• Poor or damaged: a cracked screen, a cracked back, a dead pixel line, a bad battery or a phone that will not turn on.
• Will not qualify: locked by a previous owner, reported lost or stolen, or still tied to an account.

Answer the condition questions honestly. If the grader finds something that you did not mention, the offer is lowered, and some programs return the phone to you or pay almost nothing. Working but cracked phones often have value, and a phone that will not turn on may still get a small offer.

How carrier trade-in credits really work

A carrier offer such as up to a large amount off a new phone sounds like a discount, but it is usually a bill credit. You pay the full price of the new phone in monthly installments, and the carrier takes a small amount off your bill each month for 24 to 36 months. If you cancel service, switch carriers or pay off the phone early, the remaining credits stop. That means a trade-in deal locks you in. It can still be worth it if you plan to stay, but compare the total cost over the whole period against paying outright, or against selling the old phone yourself and buying an unlocked phone. How unlocked and carrier phones compare explains the math.

Locked, financed or lost phones

• Still paying it off: ask the carrier whether it will take the phone as part of an upgrade and how the balance is handled. Some do, and some need it paid first.
• Carrier-locked: many programs accept locked phones, but the price is lower than for unlocked ones.
• Reported lost or stolen: will not be accepted, and sending one can cause problems.
• Activation Lock or Factory Reset Protection on: the phone will be rejected until you remove your account.

Trade in or sell it yourself?

Common trade-in mistakes

• Ignoring the fine print on credits, and the plan you must keep.
• Forgetting to remove your account, which gets the phone rejected or lowers the offer.
• Overstating the condition, then losing money when the grader checks.
• Trading in before the new phone works, and losing access to your data.
• Waiting until the next model launches, when prices fall.
• Not keeping a receipt or tracking number.

When to trade in for the best value

Phones lose value fastest right after a new model launches, usually in September for iPhone and around January to February for Galaxy S phones. Trading in just before a launch often gets more than waiting a few weeks after. Carrier promotions are strongest around launches and holidays, so check offers then if you are also buying a new phone.

Wipe the phone properly

On iPhone, back up, sign out of iCloud in Settings › your name › Sign Out, which turns off Find My, then go to Settings › General › Transfer or Reset iPhone › Erase All Content and Settings. On Android, back up, remove your Google account in Settings › Accounts and your Samsung account if you have one, then factory reset. Removing accounts first avoids Factory Reset Protection locking the phone for the next owner, which can cancel your trade in credit.

Do not forget these

• Remove the SIM card or delete the eSIM.
• Unpair your Apple Watch or Galaxy Watch first, so it backs up.
• Remove cards from Apple Pay or Google Wallet.
• Take photos of the phone's condition before shipping it.

Promotions that look bigger than they are

A trade in deal that promises a large amount off a new phone is often paid as monthly bill credits over 24 or 36 months. If you leave the carrier early, you lose the remaining credits. Compare that with the cash value a buyback site offers today, and decide whether staying that long suits you.

Keep the paperwork

Save the trade in confirmation, shipping receipt and tracking number until the credit appears. If the value is lowered after inspection, you can usually ask for the phone back instead of accepting the new offer.