One of the biggest problems is the cost per minute, a serious disadvantage for anyone who talks a lot on a cell phone. With increased interest in the prepaid market, prepaid phone rates have dropped and plans improved. In most cases, however, per-minute rates still usually are lower with traditional contract plans [source: TMCNet ].
Expiring minutes and service -- The minutes you buy for your prepaid cell phone may come with an expiration date of 30 or 90 days. If so, you'll lose them if you don't use them by then. You also may need to buy minutes regularly to extend the activation period. Unexpected fees -- With a prepaid cell phone, you won't pay monthly taxes or termination fees as with traditional plans, but you may find other unexpected fees -- or higher fees than you'd expect for extra services.
You also may be charged for roaming, sending text messages or photos, downloading ring tones or games and accessing the Web [source: CNET ]. Limited features -- You probably won't find the latest, most sophisticated features on the average cheap prepaid cell phone. It probably won't be a picture phone. It also won't have Internet access or the ability to share videos.
However, some companies are offering more high-tech phones. Virgin Mobile , for example, offers phones ranging from basic to those with mobile Web, camera with flash, audio and picture messaging, Bluetooth wireless and mobile instant messaging and e-mail. Untransferrable phone number -- If you switch to another phone carrier, you probably won't be able to transfer your prepaid phone number. Worse yet, if you allow your prepaid cell phone to deactivate by not using it or buying minutes within the prescribed time, you'll probably be assigned a new number when you reactivate it.
That means having to notify everyone about your new number [source: HubDex ]. Next, let's take a closer look at prepaid cell phone plans and how to go about finding the right one for your needs.
Prepaid cell phones offer anonymity, and that's not something everyone likes -- particularly law enforcement agencies. In Texas, a state senator has introduced a proposal that targets gang members and would bring cell phone users out into the open. If it becomes law, the proposal will require prepaid phone buyers to show a state ID and sellers to track the sales.
Buyers would be limited to three cell phones at a time. Cell phone manufacturers and carriers would need to retain phone records for use in criminal investigations [source: Business Week ].
When you start looking at prepaid cell phone plans, you'll find a lot of variations. You can, for example, buy a phone with basic service and then just add minutes as you need them.
You can select a more high-tech phone with added features and services, and you can buy larger bundles of minutes to get them more cheaply. You also can choose a prepaid phone contract that's almost a hybrid of a prepaid plan and a traditional monthly plan.
Let's take a closer look at examples of each. Calls cost 10 cents per minute to or from other Virgin Mobile phone numbers and 20 cents per minute to everyone else. You have to sign up for the plan with a credit card or checking account number, but you can cancel at any time. The cheapest plan provides anytime minutes at 15 cents each, while the most expensive plan offers minutes at 11 cents each with unlimited mobile-to-mobile and night and weekend calling. As with TracFone, payment is automatically deducted from a credit card or checking account.
Start with the plan, not the phone, experts advise. Then look at the service quality you can expect to receive from the plan in your area. Finally, whether you choose true pay-as-you-go or a monthly plan, look closely at charges as well as minute rates. These may include:.
Once you've picked your plan type, the next decision is which provider to use. Let's look at that next. Prepaid cell phone providers can be classified as mobile virtual network operators MVNOs or traditional wireless carriers. The MVNOs focus on the prepaid phone business, leasing space on traditional carriers' networks rather than having their own.
Here are some strengths for each of these prepaid cell phone providers, based on reviews and surveys by consumer experts:. Virgin Mobile -- Feature-rich plans with competitive pricing. Yes , You can bring a device you already own over to Verizon.
Keep the phone you love and already paid for and take advantage of Verizon's network. There are no activation fees for prepaid plans when you sign up online. This content is provided for information purposes only.
All information included herein is subject to change without notice. This means that the network can slow down your data speeds at any time that the network is busy—think rush hour, big sporting events, and peak use hours in urban areas. Deprioritization is an issue with almost every single prepaid plan, but also the lowest tiers of postpaid unlimited plans. You have to bump up to the pricier plans before you see deprioritization disappear completely.
In short: if you need a mobile plan that always has fast, reliable data speeds, then you should stick with the higher-tiered more expensive postpaid plans. We hope that this information helps you decide which kind of mobile plan is right for you. Check out our lineup of the best cell phone plans —both prepaid and postpaid—if you still need help deciding!
Vivint Smart Home Security Review. Disclaimer : The information featured in this article is based on our best estimates of pricing, package details, contract stipulations, and service available at the time of writing.
This is not a guarantee. All information is subject to change. For the most accurate information, please ask your customer service representative. Clarify all fees and contract details before signing a contract or finalizing your purchase.
Each individual's unique needs should be considered when deciding on chosen products. Go to Reviews. Watch our video reviews on. Home Security Home Security Reviews. SimpliSafe Google Nest Secure vs. What is Home Security Monitoring? Internet Reviews. Verizon Fios Spectrum vs.
Mobile Reviews. Since prepaid companies offer such low prices and do not force their customers to sign a contract, they charge full value for the phone. One of the other downsides to choosing a prepaid cell phone company is the availability of certain devices. Most companies offer a large selection of new and refurbished android phones, though.
Some of the features of the prepaid cell phones might not be as convenient as the features of a cell phone that comes with a two-year contract. This will allow you to refresh your voice minutes, text messages and data minutes automatically. The only downside is that you will have lost the remainder of your month of service; refreshing your monthly cycle can add up and end up costing more than a traditional contract cell phone plan.
Since most prepaid cell phone plans offer a la carte features, you can pick and choose which features work best for you. Some of the additional features include added minutes, text messaging packages, international call, mobile hotspots and cell phone protection plans. If you purchase a small package of voice minutes every month, you might want to purchase additional minutes should your minutes run out.
You can usually purchase more minutes by logging onto your account online and topping up your minutes. You can also top up minutes by purchasing a top-up or gift card at a major cell phone retailer like Best Buy.
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