3 Ways Prepaid Cell Phones Are a Better Choice Than Contract PhonesReviewAdvice

3 Ways Prepaid Cell Phones Are a Better Choice Than Contract Phones

As cell phones continue to shape the way many of us communicate, shop and access information, finding budget-friendly alternatives for these is a great way for you to save money. Prepaid cell phones are an attractive option because they can help you control costs and are a better choice than contract phones for these three reasons.

3 Ways Prepaid Cell Phones Are a Better Choice Than Contract Phones

No Termination Fees

With a contract cell phone, you can either buy a phone at a discounted rate with a two-year service commitment or finance the full price of the mobile device. In either instance, if you switch service providers before fulfilling your terms you owe a balance to the company you left, which can result in hundreds of dollars. This is why a prepaid cell phone is a great alternative because you have the freedom to switch providers any time you choose and you don't have to worry about paying costly fees to achieve this. While it's true you will need to make a higher initial investment to obtain a phone with a prepaid plan, a smart money rule is to only buy what you can afford now, which is what this forces you to do.

Flexible Plans

Another great benefit with prepaid cell phones is you have flexibility in plans. This means you pay for what you will use. Many providers offer a flat monthly fee that gives you access to texting, talk time and data. In addition, you can also sign up for services where you only pay for the days you use the phone. This flexibility gives you more control over which services you pay for whereas with a contract cell phone plan, you pay a specific amount per month for a blanket of services especially if you decide to get a smart phone. This means you are paying for services you might not use.

Easy Sign-Up Process

With prepaid cell phones, there are no credit checks or deposits you must pay to use service. You simply buy the phone you want and the corresponding monthly service amount that best fits your needs. Conversely, with contract plans, the provider will check your credit to see if you have any outstanding balances with other cellular companies. If you have poor credit, they might allow you to obtain service but you must pay a deposit first. This makes prepaid cell plans a better alternative if you have limited credit or have had financial problems in the past.

To summarize, prepaid cell phones are a great fit if you are looking to control how much you pay for the services you use. While they do require an initial investment in buying the phone and service, over time you won't have to worry about termination fees if you want to switch providers. Best of all, obtaining a prepaid cell phone is easy since you don't have to worry about credit checks and deposits. This makes them a great option to consider if you want all the benefits of cell phone use without the high costs.

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