Four Reasons to Choose a Prepaid Cell Phone Plan

What is a prepaid cell phone plan? Prepaid, or pay as you go, cell phone plans are an alternative to traditional monthly plans. So, how do you decide if prepaid is right for you?

Most cell phone plans are sold on a month to month basis, or more commonly a contract with a length of one to three years with a monthly fixed cost. The cost includes a certain number of minutes, and signing up for this type of plan usually requires a credit check. Once you are signed up, you receive a monthly bill including your base charge as well as any additional charges like overage minutes or feature downloads you made that month. The contracts for monthly plans usually carry an early termination fee if you cancel before your contract term has expired.

No Contracts Please

If you're not sure that a traditional plan is right for you, prepaid cell phone plans can be a great option. You may have avoided buying a phone up until this point, but feel that you need one for emergencies, or just feel that it's time to connect yourself when you're on the go. With a prepaid cell phone plan, you buy your phone, activate it and then pay to put minutes or dollars on your account, much like a long distance prepaid phone card. As you use the phone, money is subtracted from your account and when it runs out you pay to add more.

No contract and no monthly fee are only two of the advantages to a prepaid plan. With most prepaid plans, you buy minutes as you need them by purchasing phone cards with a set number of minutes included. Some prepaid plans also allow you to add minutes by calling in with a credit card number or going online.

No Credit Check or Deposit

No credit check for prepaid phone plans also means there is never a deposit required for prepaid cell phone service. If you have no credit history, or your credit has been damaged, prepaid plans can be a great way to get a cell phone when you might not otherwise qualify. Once you have the phone, they also let you control your costs. You know exactly how much you are spending per minute, and there are no hidden fees. If you're on a tight budget, this type of plan may be attractive because you will never face overage charges.

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