The Pros and Cons of a Prepaid Cell Phone Service Plan

Copyright (c) 2010 Tara Tiemann

Lots of individuals are drawn to using prepaid wireless cell phones because typically, it is easier to get yourself a prepaid phone than applying for a monthly cell phone service plan. Would you like to experience a prepaid wireless phone too? Or are you a post paid phone user who's thinking about the going prepaid?

The truth is that prepaid cell phones can be favorable for some folks yet impracticable for others. It really all depends upon your lifestyle and objective for using a cellular phone. For this reason, before buying your own prepaid phone package, give consideration to the advantages and disadvantages so you can better decide which type of cell phone service is right for you.

Prepaid Cell Phone Pros

You are not tied up to a long term contract. Most post paid cell phone service companies will require a subscriber to sign up not less than one to two year commitment. Of course post paid subsribers cannot terminate this contract at an earlier time. Once a consumer decides to deactivate the service, he/she will be required to pay a certain amount (penalty fees).

You won't have to worry about having your credit report checked. For anyone who is at the moment in the process of repairing poor credit history, applying for a post paid cell phone service can be very difficult. Going for a prepaid cell phone plan will not require a credit check which means you don't have to worry about your credit score.

No monthly bills and late fees. For people who would like to limit their expenses, prepaid cell phones can be great tools. Because it is prepaid, you can reload your phone as you need to. You don't have think about late payments or incurring penalty charges.

Prepaid Cell Phone Cons

Per minute call charges. Keep in mind that calls made from a prepaid cell phone are charged per minute. For anyone who needs to make regular calls, a prepaid phone service can actually cost more since you will have to consistently reload your account. Apart from cost per call, having to buy and reload a new call card all the time can prove to be a hassle.

Limited choice of phone units. Generally, the choices of mobile phone models are minimal with prepaid phone plans. You will have to buy a separate phone unit if you want a cell phone that will let you browse the net and make sure that your chosen handset is compatible with your chosen prepaid cell phone service provider.

Limited coverage. When compared with post paid cell phone services, prepaid plans may only operate in limited locations so before buying a prepaid package, you need to inquire about the available coverage offered by your chosen service provider.

You can't use a prepaid phone plan to rebuild credit. Using a post paid cell phone service plan is one way to build credit history as it entails monthly payments. If you decide to go with a prepaid phone service, you must look for other ways to improve your credit standing as prepaid service providers will not be reporting your payments to the credit bureaus.

About The Author Credit analyst of Go-Prepaid.com, Tara Tiemann has been a resource site for those who are on debt and wanted to live their lives debt free! Are you on a budget? Do you want to save big in your finances? Then using debit card and prepaid cell phones would be a great help.