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Is It Time To Switch To A Prepaid Cell Phone Service

? Copyright (c) 2010 Tara Tiemann

Prepaid phones are getting more popular these days. People who do not want to get tied to long term contracts or individuals who find it difficult to qualify for a postpaid plan due to a bad credit history can easily apply for a prepaid one.

If you are planning to get a prepaid phone, what are the things that you should consider? Is a prepaid phone plan really the best choice for you? Which is better, subscribe to a post paid or switch to a prepaid wireless phone service?

Below are the advantages and disadvantages of a prepaid wireless phone over post paid counterparts.

Prepaid Phone Advantages

Lower your monthly bills. You can significantly lower your monthly cell phone bill since prepaid phones limit your usage to the amount of credit available in your account. Pay as you use prepaid phones are ideal for people who need a cell phone but do not need to make calls or send text messages that often.

Prepaid phones can be reloaded according to your needs and you can choose from different denominations of reloadable prepaid cards ranging from $10, $30, $50, $100 and above. Reloadable cards can be used for both sending text messages and calls.

No credit check done. Whether you have bad credit or no credit history, you can get a prepaid phone with no hassle. Prepaid phone service providers do not do credit report checks since there is no risk that the subscriber may default from payments.

More affordable. As long as you can stick to the budget you have set, using a prepaid wireless phone service is really much cheaper than subscribing to a monthly post paid plan. You can limit your cell phone usage to as low as $50 or even lower than that.

Prepaid Wireless Phone Limits

Higher Per Minute Call charges. Per minute call charges are most likely to be higher with prepaid plans compared to post paid packages. People who often make calls or send text messages every day are not the best candidates for a prepaid phone service.

No Free Handset. Post paid phone plans are often accompanied with expensive handsets. You can get these phone units by paying low monthly installments or even for free when you subscribe to a plan. Such privilege is not offered to prepaid phone users. You will need to buy a separate phone unit if you do not want the one that comes with the prepaid cell phone kit.

Extra Services cost more. With a prepaid plan, subscribing to additional features such as voice mail, caller ID, three-way conferencing, call waiting, and other phone functions may cost you extra dollars for each type of service.

Limited Coverage. The reliability of service and coverage will often depend on the prepaid cell phone service company and the area where you live. Thus, before buying a prepaid phone kit, it is important to check out if coverage is available in your State or in places where you usually make calls.

About Author Tara Tiemann :

Tara Tiemann is a credit analyst of <a href="" target="_blank"></a> and has been a resource site for people who want to live debt free! If your on a budget using pre-paid credit cards and pre-paid cell phone services can save you big money!

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Article Added on Tuesday, July 13, 2010
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