The Pros and Cons of Prepaid Cell Phone Services

Many people are attracted to prepaid cell phones because generally, it is far more convenient to get a prepaid phone than it is to apply for a regular cell phone service.  Do you want to try out a prepaid phone yourself?  Or are you a regular phone service subscriber who plans to switch or go prepaid?

The fact is, that prepaid phones can be advantageous for some people yet impracticable for some.  It all depends on your lifestyle and purpose for using a cell phone.  Therefore, before purchasing your prepaid phone kit, consider first the pros and cons before making a decision whether it is the perfect plan for you.

Prepaid Cell Phone Pros

You are not tied up to a long term contract. Many cell phone service providers require their customers to sign up for at least a two year contract.  That means you cannot terminate the contract before this time period.  If you decide to deactivate the account, you will have to pay the penalty.

No need to worry about credit checks. If you are someone who is currently in the process of rebuilding bad credit, applying for a regular cell phone plan, or post paid plan as its also known, may prove to be tough.  By obtaining prepaid cell phone service, there is no need to worry about the status of your credit history.

No monthly bills and late fees. For those who want to exercise a limit on their budget, prepaid phones are a good option.  Since it is prepaid, you can reload your account as you need to use it.  There is no need to worry about falling behind your payment due dates or being penalized for being late.

Prepaid Cell Phone Cons

Limited choice of phone units. Typically, the choices of cell phone are limited with prepaid phone plan packages.  While many prepaid cell phone issuers are working hard to bring their customers all the features they have grown accustomed to with their old cell phone service, If you are looking for a phone like the I-Phone or Droid you will not be able to get these on a prepaid plan….. yet.

Limited coverage. Compared to regular phone plans, prepaid phones may only work in limited areas so before purchasing a prepaid kit, you’ll want to check out the available coverage provided by your chosen carrier.

You can’t use a prepaid phone plan to rebuild credit. Subscribing to a regular cell phone service can be one way to build up your credit rating since it involves monthly payments.  If you choose to go prepaid, you will need to find other means to enhance your credit history as prepaid cell phone service providers cannot keep track of your phone usage or report your payments to the credit bureaus.

About the Author

Tara Tiemann is a credit analyst for which has been a resource site for people who want to live debt free. If you are on a budget using prepaid debit cards,prepaid credit cards and prepaid cell phone service can save you big money!

About Liz Roberts

Liz Roberts is the new credit specialist for Go-Prepaid. If you are on a budget, we can get you discounted cell phone service from Sprint, Verizon and T-Mobile! NO CREDIT CHECK ! Using a prepaid services can save you a TON of money! Follow our blog to find out how!

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