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What Are
Prepaid Cell Phone Plans

The concept of prepaid cell phone plans is similar to long distance phone cards. The consumer pays for the cell phone plan in advance and therefore keeps you from spending unnecessary minutes. If you are looking for prepaid plan reviews or a quick comparison click here. With prepaid cell phone plans, you pay for your cell phone minutes ahead of time which is a convenient, hassle-free way to enjoy your cell phone and a good way to control your costs without the worry of overspending and ending up with a huge bill.
Using prepaid plans is a great way to stay within your budget restraints. You decide how much to spend by purchasing prepaid airtime vouchers. There is no limit on how much vouchers you use, but generally the voucher expires between 30-90 days.

To keep your account active, you would have to keep your account above the 0-mins mark at the expire period. If not you would be forced to pay a reactivation fee to keep your number. However, with longer expiry periods and improving rates this isn't as huge of a problem anymore.

There are:

  • No contracts
  • No credit checks
  • No deposits
  • and often No activation fee.

The most important aspect of prepaid plans is that they are an escape-goat for avoiding a contract. Generally, people don't want to be locked into a contract because of the competitive nature of the industry; cheaper, more flexible cellular phone plans may arise in the future and with a contact you won't be able to switch to it. Also they do not have a monthly system access fee attached to them and with no monthly bills there will be no surprises.

Most prepaid cell phone plans includes national wide long distance and free roaming on their network, similar to most monthly national plans. Then again, you would be paying very high rates calling off their network. This information is in the contract so read between the lines before you sign anything.

Some of the disadvantages of going prepaid is that there is usually a limited choice of compatible phones, compared to phones you could choose if it was a traditional plan. Some features are also not available and as you already know, you will be paying a higher rate per minute.

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