What is a Pay as You Go Prepaid Phone Plan?

Cell phones are ubiquitous in modern times. What you may not be aware of is there are different service options available that may suit your needs better. Let’s look at prepaid phone plans, what they are, and why many people choose them.

Prepaid And Postpaid:What’s The Difference?

The two main types of service offered by cell phone providers are postpaid and prepaid.
Postpaid plans are the plans that we know. You get a contract with a cell phone provider for a certain number of months of service. You have a base price for the month which covers talk minutes, gigabytes of data, and number of text messages allowed.
If a person goes over their allotted minutes, data, or text messages, they will be charged fees. Postpaid means you are paying for the services after they are all tallied up at the end of the billing cycle. The billing amount on a postpaid plan can vary greatly month to month.
Prepaid cell phone plans do not require contracts. You pay the provider a flat fee for service that covers the month. You are paying before services begin, not waiting until the end of the cycle. You will know how many minutes, how much data, and how many text messages you have. You will not be charged overages. Sometimes, with prepaid plans, you can add extra features like international calling or extra data, but those are also one flat fee.
With prepaid cell phone service, you never have to worry about surprises, as the service charges will be the same month to month unless you change or upgrade your plan.
Now we know what each type of service plan entails, let’s get into pros and cons of each.

Pros And Cons: What To Know

Some pros of postpaid plans include:

  • Often wider coverage areas
  • Phones cost less
  • Possibly superior customer service
  • Higher priority during peak usage
  • May save money on family plans

Potential drawbacks include:

  • Long contracts
  • Charges/ fees
  • More expensive overall
  • Fewer phone options

People may prefer prepaid plans because:

  • No contract
  • No hidden fees
  • Usually much cheaper
  • You don’t lease/ finance your phone

Potential drawbacks of prepaid include:

  • Smaller coverage area
  • Unable to insure your phone
  • Phones are full price
  • Not highest priority when towers are busy

Companies offer postpaid and prepaid plans in abundance. It’s easy to find a plan that works for your service and monetary needs. Check your options today.

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