Pros and Cons of Prepaid Cell Phone Plans

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If you are wrestling with the decision as to whether you should choose a prepaid phone (or pay as you go) or sign a cell phone contract, if you need to know the differences and pros and cons of prepaid cell phone plans, you’ve come to the right page.  At, we have researched some of the pros and cons to provide you with information when making the decision of getting a prepaid cell phone or a contract.


  • No Contract to sign so you’re not locked in.
  • No credit check
  • Credits can be applied to more than just the voice calls, can also apply to text and internet.
  • Flexible
  • Access to get great features such as Voicemail, Call Display, Group Calling and Call Waiting.
  • You can great some great services
  • Save money and control how much you spend per month.
  • As you’re not locked into a contract, you can end at any time
  • Little or no activation fees (usually this is charged at a store and if you sign up online)
  • Most prepaid offers no charge for incoming calls or texts


  • You have to purchase the phone yourself, so if you want a higher end phone, you will be paying a lot of money upfront.
  • Should you decide to change the cell phone carrier company, you cannot use the same phone and phone is locked.
  • Cost per minute, data or text is higher
  • Could be a onetime activation fee
  • No billing so pay close attention, there may be a monthly limit on minutes that are required.
  • Buying credits usually have an expiry and from 30 to 90 days.  Know the date of expiry so you don’t end up losing credits
  • Few, if any, deals or specials
  • No Bundles on text, talk and data, or can’t bundle other services the company offers such as internet, cable or phone.
  • No multiple user plans
  • Many plans now offer unlimited calls or text, but with the prepaid, the cost per minute fluctuates with the day and time.  You need to be conscious of this if you don’t want to put out too much money so need to plan your calls or do some clock watching to find out when to place your call.

Compare cell phone plans with your needs in mind to know whether a prepaid plan is for you.