Why Buy Prepaid Cell Phones?

How to avoid taking a contract out on your life

Prepaid cell phones are quickly becoming the most popular choice for new cell phone users. It's easy to understand why. Anyone who's signed a two- or three-year cell phone contract knows how far off that contract expiration date can seem. Cell phone companies typically charge an early termination fee for breaking your contract, which makes it difficult to shop for the best cell phone plan available.

The advantages of prepaid cell phones

No commitments
If you discover that you don't like your service provider or don't use your cell phone as much as you'd expected, prepaid cell phones give you the flexibility to change. Using prepaid cell phones means you'll never be locked into a multi-year cell phone contract paying for services you don't use or enjoy.

Better value
The typical cell phone contract charges a monthly fee for the same number of minutes every month. If you don't use all your minutes, you lose them. A prepaid cell phone allows you to use every minute you pay for, and when you run out, you simply buy more.

No credit checks or security deposits
Because you've paid upfront for your minutes, you can get a prepaid cell phone even with a bad credit history.

Emergencies
Prepaid cell phones are convenient for people who would prefer to have a cell phone in case of emergency but don't want to pay $30 or $40 every month to have that peace of mind. Prepaid cell phones are ideal to keep in your car or as gifts to an elderly relative or friend.

The disadvantages of prepaid cell phones

Higher per minute charges
Some prepaid cell phone providers make their money by charging a higher per minute rate than you'd get with a cell phone contract. However, rates are coming down (ten cents a minute is common), and because you're not locked into a cell phone contract you're also free to compare prepaid cell phones and switch if you find a better per minute deal.

Expired minutes
Most prepaid cell phone providers offer minutes that expire thirty to ninety days after you purchase them, though there are prepaid cell phone minute packages available that retain unused minutes for up to a year. If you're someone who will practically never use your prepaid cell phone, you could end up wasting some money. You'll also want to make sure that the prepaid cell phone you keep for emergencies won't have expired minutes when you really need it.

Recharging
It's a minor inconvenience, but prepaid cell phones will require you to recharge your minutes as they expire. You can do this on the Internet, by phone, or by purchasing prepaid cards.

Prepaid cell phone providers

Some of the companies that provide prepaid cell phones include Net10, Virgin Mobile, Verizon Wireless, and Tracfone. When shopping for prepaid cell phones, pay attention not only to cost, but also to coverage area. A slightly higher per minute rate might be worthwhile if you know that your prepaid cell phone is going to work wherever you need it.

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