Should I Switch to a Prepaid Cell Phone Service?

Prepaid cell phone services are becoming more popular these.  People who do not want to commit to a long term contract and those who cannot qualify for a post paid phone service because of bad credit turn to prepaid plans.

Are you planning to get a prepaid phone too?  Or are presently subscribed to a post paid plan yet considering a switch to prepaid?  Before you take the next step, first consider if a prepaid cell phone service is indeed right for you.  In this article, let’s discuss the advantages and limitations of using a prepaid wireless phone.

Prepaid Phone Advantages

Lower your monthly bills. You can save a great deal from a prepaid wireless phone if you choose the plan that matches your needs.  Pay-as-you go plans are recommended for people who do not need unlimited talk time.   Many prepaid cell phone companies offer affordable bundle packages that comes with the two basic services- text messaging and calls.      

No credit check done. Anyone can get a prepaid phone at any time regardless of credit standing.  It doesn’t matter if you have bad credit or no credit history at all.  Since you will only be able to use your phone by reloading credit, Issuers do not need to worry about defaults.

More affordable. If you stick with the budget you set, then prepaid phones are definitely the best way to cut costs.  You can get a prepaid plan for as low as $10 per month only.  That gives you at least 30 minutes of talk time at .10 cents per minute per call and .10 cents per text message.

Prepaid Phone Limits

Higher Per Minute Call charges. You can expect higher per minute call charges compared to a post paid plan.  Thus, if you to make calls from a wireless phone on a daily basis or if you need one for business, perhaps a contractual phone package is the more practical choice.

No Free Handset. Post paid wireless plans are often accompanied with the latest phone units or handsets that you can get for free or for cheap monthly installments.  On the other hand, prepaid providers do not offer free handsets since the use is not subject to any contract.  Thus, if you want a trendy handset, you’ll have to buy it on your own.

Extra Services cost more. If you want to subscribe to additional features such as voice mail, caller ID, three-way conferencing, call waiting etc., you need to pay extra for each type of service.  With a post paid plan, these functions are often already included with the package.

Limited Coverage. Different prepaid phone providers extend varying coverage services, depending on the area or State.  It’s very important to consider this factor especially if you frequently go on out-of-State trips.

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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