The decision to purchase a cell phone is huge and has many economic implications. With the economy the way it is now, money is tight and how to spend it regarding cell phones is a hot topic right now.
Should you get one of the many prepay cell phones available now or go with a service contract you will be tied to for 1-2 years? Many people are finding this choice in front of them as staying connected is more popular than ever before.
Lets examine in depth the two options so that you can make an informed decision.
Prepaid Cell Phones
- No credit check-great for those with credit issues and for those who don’t have the cash to put out for deposits.
- You decide how many minutes you want to talk each month; 100 minutes one month and 1000 the next if you want.
- No contract-if you change your mind or can’t afford your cell phone one month or more, there are no cancellation fees.
- Some prepaid minutes expire, so check the fine print. You may lose it if you don’t use it! (an exception I’ve found is the TracPhone and Virgin Mobile. Their minutes roll over).
- You may or may not end up paying more per minute in exchange for the benefits depending on usage and the company used.
- You must purchase a phone from the company you decide on.
Service Contracts
- There will most likely be a credit check and a deposit depending on your credit. T-Mobile does theirs a bit differently. They are great for people with no credit or bad credit. You do not have to pay a deposit, only your first month’s bill.
- Some company’s minutes roll over, like AT&T. Some don’t, like T-Mobile. You lose your minutes and they are gone forever if you don’t use them.
- The minutes are often cheaper depending on the plan you get.
- You can get a family plan and save even more.
- You can get nights and weekends free on most plans.
- Many service providers provide network to network free calls.
- Some have “favs” like T-Mobile and Verizon. Calls to those people on your favs are free anytime.
- If you want, you can sign up for goodies like unlimited internet usage and texting for yourself or the whole family if on a family plan.
- You can usually get a free phone with new service.
As you can see, the choices are many and so are the options. It all depends on what your family needs for their service. Good Luck!
photo credit: evelynishere
8 Responses to “Prepay Or A Contract: What’s Your Plan?”
Debbie
1 year ago
Yep – I’m on a plan – always have been. I considered a prepay but only for a short time. I like too many of the “extras” that come with the contract. =)
Amy
1 year ago
I’m on a plan too…I understand about the “extras”!
Pam
1 year ago
My husband & I were on pre-paid programs, until it was time to add my oldest son. Now we’re on a family plan that makes more sense for all of us.
Amy
1 year ago
Thanks for your comment Pam! The family plan makes more sense for us too!
Danielle
1 year ago
We have done both. Right now we are on a contract because it is our land line as well. We really like it and it fits our needs right now!
Amy
1 year ago
THanks for your input Danielle! It is whatever works for you that matters…
Erin Hill
1 year ago
Yeah we’ve been ona plan because of the free weekends and nights. Our family lives in California and are 2 hours behind us, so we call late for us, but at a perfect time for them.
Amy Hass
1 year ago
That is one reason why I am on a plan Erin…the weekends and nights. I use that perk a lot!