Prepaid phones offer users peace of mind.
There are thousands of types of mobile phones, however, there are really only two choices when it comes to how you'll pay for your service. Postpaid phones are the traditional option, with consumers receiving a monthly bill and typically signing a one- or two-year commitment. The other choice is prepaid. Prepaid phones can be a cost-effective option for those who need a phone for minimal use, or are turned off by the idea of a commitment.
Prepaid
Prepaid mobile phones are sometimes referred to as "pay as you go" or "contract-free" phones. They are the alternative to postpaid plans, and users are not required to sign a contract or commit to a monthly bill. Minutes are purchased in advance, and the prepaid phone ceases to work once the minutes have all been used or expire, whichever comes first. Activating a prepaid phone does not require the user to supply personal information, as there are no monthly bills or credit checks.
Benefits
Prepaid service can be a logical choice for consumers who want a mobile phone but don't like the idea of a contract. Contracts often charge consumers hefty termination fees if they are canceled early, and are generally one to two years in length. A person who only needs a phone for a short amount of time would save money by choosing a prepaid device rather than postpaid. There is also no worry of overage charges for exceeding your allotted minutes, as prepaid phones cease to work when minutes are used up. Additionally, acquiring a prepaid phone does not require a credit check. This can be beneficial to people with poor credit history or minor children who want a phone but don't meet the requirements of postpaid providers.
Drawbacks
Prepaid phones can offer peace of mind, but they do have some limitations over their postpaid counterparts. Not all the features and services available with postpaid plans are offered to prepaid consumers. Things like roadside assistance and insurance for lost, damaged or stolen phones are typically only offered when you have a contract. There is usually a smaller selection of phones as well, and the deep discounts offered to customers when signing a contract is not available on prepaid phones. It may also be difficult to get assistance in person with phone issues, as most retailers who sell prepaid devices do not service or activate them. Prepaid users usually must call a toll-free number or access a website for troubleshooting.
Suggested Users
Prepaid phones are recommended for consumers with a low credit rating because they do not require a credit check. A prepaid phone also works well for a minor child, as it eliminates the danger of a high bill. Additionally, a lost prepaid phone is not as much of a worry as a post paid phone is; as there is no risk of being billed for fraudulent charges. Elderly consumers who only want a phone to use for emergencies are also candidates for prepaid devices.
Choosing
A number of providers sell prepaid devices, including Metro PCS, Virgin Mobile, TracFone and AT&T's Go Phone. One of the most important things to consider when choosing a provider is coverage. Visit carriers' websites to view their coverage maps, and remember to check your home address, your route to and from work and places you travel. You should also consider how often you want to replenish your phone's minutes. Some providers require you to add minutes every 30 days, while others allow you to go 90 days or more before adding airtime. You should also know how you plan on replenishing your account. If you want the convenience of adding minutes online, for example, make sure the provider you choose offers this feature.
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