Stop Overpaying For Mobile Service With These 5 Prepaid Phone Benefits

What are prepaid cell phones?

Many people have a contract with their phone provider, and there is no limit on their monthly phone and data usage other than a credit limit agreed with the phone company. They are tied into a contract for a certain amount of time, and typically a phone comes with the package.

With a pre-paid agreement you have much more control over what phone you have, and how much you spend on calls and data each month. You can apply a certain amount of credit on your account each month, and when that runs out you choose whether to add more credit or just stop using your phone! You may still have a contract but it will be far less binding than a monthly credit contract. Some phone companies such as T-Mobile have done away with contracts altogether for their pre-paid customers.

Are there any other benefits of pre-paid phones?

If you use your own phone or buy one separately, you will not be subject to a credit check. Because you pay for your calls, texts and data in advance and can only get more of these if you top up your credit, there is no risk to the phone company and your credit score is therefore irrelevant. One last point. When you buy a pre-paid cell phone it is ready for immediate use. No waiting around for the provider to activate your account, run credit checks and get you a number! You even get 30 minutes of free talk time.

Do I have to visit a store to top up my phone credit?

If you want to pay cash you will need to visit a store, but an alternative to having to go to a store each time is to buy refill cards in advance that you can then activate and use to top up your phone. You can also set up a customer account and log-in to top up your account. Account payments are usually made by transfers from a checking account or by credit card. The other option available is to agree a set monthly plan with your phone provider. These can start from as low as $20 per month, and you can set up an auto-pay arrangement to make this payment automatically from your bank account each month. If you reach your limit the phone provider will let you know (of course!) and you’ll have the option to add more credit.