What is Prepaid Cell Phone Plan?

By Bram P

When you are buying a cell phone, you also have to pick a service provider. Each carrier in the United States offers a different selection of technologies and services, so it’s important to think about your needs when making a choice. There are two kinds of plans, post paid and prepaid cell phone plan. In this article we are going to know about prepaid cell phone plan.

Definition

Prepaid cell phone plan is a plan where you have to purchase in advance for credit first for cell phone credits before you could use their services, also known as pay-as-you-go. With prepaid cell phone plans, you can buy minutes ahead of time and replenish them as needed, instead of signing up for long-term contracts. Already widely used in Europe, now this prepaid cell phone plans have become the fastest-growing segment in the US. More companies offer more attractive and competitively priced prepaid calling plans.

Advantages

Prepaid cell phone plan do not require service contracts or commitment to a monthly service plan. Instead, consumers essentially buy their minutes ahead of time–usually with small amounts of money–and then use them up in the ensuing weeks and months. Once your minutes are exhausted, you simply add airtime to the prepaid account, usually by purchasing activation cards or buying extra minutes through your phone. With no contracts to sign, no monthly bills, no long-term commitments, no credit checks, no age limit and no hidden fees, these are what make prepaid wireless plans so attractive.

With these advantages make a prepaid cell phone plan suitable for

• Parents of teenager for set up number of minutes using by the teen.
• Occasional users, which is you only use a cell phone for emergencies or back up.
• People with have no credit history or credit card debt.
• Short-term user, which is you only use a cell phone as temporary term like on vacation or on duty in other region or country.

Disadvantages

1. Cell phones are not free; you have to purchase a larger initial investment.
2. Limited selection of phone models because not all cell phone models work with prepaid cell phone plan.
3. More expensive price time per minute than post paid cell phone plan.
4. You must know how much your credit left on the phone or you could run out of credit  at crucial time.
5. Some carriers will put a time limit on your credit (you will need to use it up within a certain time or else it will be classed as invalid).

Top 5 Best Prepaid Cell Phone Provider

(source : consumersearch.com)

Best prepaid wireless overall

Pros :

• Good call quality
• Wide variety of plan options
• Good customer service

Cons :

• Limited handset choice
• Plans and website can be confusing
• Skewed towards younger demographic

Best prepaid wireless for occasional use

Pros :

• Good voice quality
• Large selection of phones
• Minutes can be replenished online
• Flexible rate plans
• Minutes don’t expire for 90 days

Cons :

• Costly per-minute basis
• Spotty coverage in some areas
• No free night or weekend calls

Best Call Quality

Pros :

• Good call quality
• Wide variety of plan/minute options
• Affordable plans and phones

Cons :

• Poor customer service
• Limited handset choice
• Website can be hard to use

Best as an emergency phone

Pros :

• Low per-minute price
• High ratings for customer service
• 90,000 retail locations nationwide
• Minutes don’t expire for a year

Cons :

• No free night or weekend calls

Best prepaid wireless for local calling

Pros :

• High ratings for overall satisfaction
• Excellent customer service
• Flat-rate plans

Cons :

• Limited handset choice
• Regional coverage

I wrote a guide you may be interested in reading: Tips for trace back cell phone number and Cell phone cases.

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