Postpaid vs Prepaid: Which is best for you?

Are you trying to decide on a prepaid or a postpaid phone plan? At MoneySavingPro, we've got you covered.

Whether a postpaid or prepaid cell phone plan would be best will vary depending on a number of things including if you like to keep up to date with the latest devices or if you're looking to save money.

We've selected some prepaid deals with MVNOs below and discussed the pros and cons of both postpaid and prepaid plans so you can choose the best option for you.

Tello offers the best phone plan for low data users

Tello 2GB plan for $10/mo

• T-Mobile 5G & 4G LTE network
• Unlimited talk and text with 2GB data
• Instant online activation

5

Read our Tello review

See at Tello

Tello phone plans keep things simple with their wireless service. None of those hidden fees or long-term contracts that'll leave you feeling trapped.

With free international calls to 60+ countries on all plans, including Canada and Mexico, and a range of data allowances suitable for light to heavy users.

Tello keeps costs low with flexible plans that let you choose exactly how much data, talk, and text you need. A set data plan can help you save and manage usage.

You get a 5GB mobile hotspot, but there are no multi-line discounts. Each line is billed separately, though Tello's pricing remains competitive.

Activation is quick and easy. With eSIM it takes just a few taps, or you can have a SIM card shipped directly to you.

Tello is one of the most affordable and flexible choices on T-Mobile's network, but I also weighed a few other options.

Ultra Mobile is a solid pick for international calling, but its plans are more expensive for the same amount of data. Metro by T-Mobile, despite being owned by T-Mobile, comes with higher costs and often requires an in-store visit. While Boost Mobile has competitive pricing, but hidden fees and inconsistent customer service make it harder to recommend.

In the end, Tello's combination of affordability, customization, and hassle-free switching makes it the best choice.

• Build-your-own plan – Tello lets you customize your plan, so you only pay for the data, minutes, and texts you actually need-no wasted money on extras.
• Affordable, contract-free pricing – Tello keeps costs low with transparent pricing and no long-term commitments, making it easy to switch or adjust your plan anytime.
• Quick and simple activation – With eSIM, you can activate your plan in just a few taps. If you prefer a physical SIM, Tello ships it for a small fee.

Visible offers the best value unlimited data plan

Visible unlimited plan for $25/mo

• Verizon 5G & 4G LTE network
• Unlimited talk, text and data
• Instant online activation

3.4

Read our Visible review

See at Visible

Visible keeps things easy with two affordable unlimited plans on Verizon's network. There are no contracts and no hidden fees.

With unlimited talk, text, and data starting at just $25/month, plus mobile hotspot included, you get great value without surprises. The Visible+ plan offers 50GB of premium data and access to Verizon's 5G Ultra Wideband for even faster speeds.

Visible keeps it simple with two unlimited plans that have no contracts, hidden fees, or surprise costs. Both plans come with mobile hotspot access at 5–10 Mbps speeds.

The Visible+ plan includes free international calling to 30+ countries and texting to 200+ destinations. eSIM activation allows for instant setup, eliminating the wait for a SIM card.

While there are no multi-line discounts, the affordable pricing makes it ideal for individuals. However, customer support is only available online.

If you want a budget-friendly carrier on Verizon's network, Visible is the best option for unlimited data without extra fees-but I also reviewed a few others.

Tracfone offers low-cost prepaid plans, but speed restrictions make it less appealing for heavy data users. Xfinity Mobile has competitive pricing, but it's limited to Xfinity internet customers. Spectrum Mobile is another affordable alternative, but you need Spectrum home internet to sign up.

Thanks to its transparent pricing and unlimited data, Visible remains the best overall pick.

• Straightforward unlimited plans – No contracts, hidden fees, or surprise charges-just simple, all-inclusive pricing.
• Built-in extras at no extra cost – Get mobile hotspot access on all plans, plus international calling and texting perks with Visible+.
• Fast and easy setup – eSIM activation lets you start service in minutes without needing to wait for a SIM card.

Total Wireless offers the best phone plan with Verizon coverage

Total Wireless unlimited plan for $50/mo

• Verizon 5G & 4G LTE network
• Unlimited talk, text and data
• Instant online activation

4

Read our Total Wireless review

See at Total Wireless

Total Wireless keeps things simple with no contracts, no hidden fees, and affordable plans on Verizon's network.

With unlimited talk and text, generous high-speed data options, and mobile hotspot included. Plus, international calling to 85+ destinations and roaming in Canada and Mexico make staying connected easier than ever.

Get Verizon's reliable coverage without the high cost with Total Wireless. Plans include unlimited talk and text, plus up to 15GB of hotspot data.

International calling to 85+ destinations and roaming in Canada and Mexico are included with select plans. There are no contracts, and you can manage everything online for easy switching.

I've explored other low-cost carriers on Verizon's 5G and 4G LTE networks, but many have limitations.

Tracfone keeps costs low with its pay-as-you-go model, but it offers limited high-speed data and fewer perks. Xfinity Mobile stands out with competitive pricing, but only those with Xfinity internet can sign up. Spectrum Mobile is another affordable choice, but again it's restricted to Spectrum home internet customers.

• Big savings on Verizon's network – Enjoy top-tier coverage without the premium pricing.
• Great extras for everyday use – Up to 15GB of hotspot data, plus international calling and roaming benefits on select plans.
• No commitments, full control – Contract-free plans with easy online management for seamless plan adjustments.

Tello offers the best phone plan with T-Mobile coverage

Tello unlimited plan for $25/mo

• T-Mobile 5G & 4G LTE network
• Unlimited talk, text and data
• Instant online activation

5

Read our Tello review

See at Tello

Tello phone plans keep things simple with their wireless service. None of those hidden fees or long-term contracts that'll leave you feeling trapped.

With free international calls to 60+ countries on all plans, including Canada and Mexico, and a range of data allowances suitable for light to heavy users.

Tello offers flexible, budget-friendly plans, allowing you to pick exactly how much data, talk, and text you need.

A 5GB mobile hotspot is included, but Tello doesn't offer multi-line discounts-each line is billed separately. However, their low rates make individual plans a great deal.

Since Tello is online-only, activation is seamless-eSIM setup is near-instant, or you can get a SIM card by mail.

Tello is among the best budget-friendly carriers on T-Mobile's network, but I compared a few others as well.

Ultra Mobile works well for international calls, but its plans cost more for the same data. Metro by T-Mobile, despite being part of T-Mobile, is pricier and often requires an in-store sign-up. Boost Mobile has appealing rates, but its extra fees and spotty customer service make it less reliable.

Thanks to its unmatched affordability, customizable plans, and easy switching process, Tello remains the best pick.

• Personalized plan options – Tello allows you to pick and choose your plan features, so you only pay for what you actually use.
• One of the cheapest carriers available – Tello provides unbeatable value with low-cost plans and no contracts, giving you total flexibility.
• Fast online activation – eSIM lets you activate your plan in minutes, or you can request a free SIM card to be delivered to your door.

Red Pocket offers the best phone plan with AT&T coverage

Red Pocket unlimited plan for $30/mo

• AT&T 5G & 4G LTE network
• Unlimited talk, text and data
• Instant online activation

4

Read our Red Pocket review

See at Red Pocket

The Red Pocket Mobile unlimited plan is powered by the Verizon and AT&T wireless networks. And if you're looking for an unlimited plan for the whole family, they are one of the best MVNOs for family plans, with a $20 discount for each additional line added.

You'll need to pay a setup fee, but after that, choosing a family plan could save you hundreds of dollars a year.

With Red Pocket Mobile, you get unlimited talk and text, no hidden fees, and up to 30GB of high-speed data, including hotspot access.

Adding extra lines saves you money with multi-line discounts, although there's a setup fee for each line.

They also offer a 7-day money-back guarantee on eSIM plans and free international calling to 80+ countries, plus free roaming in Mexico and Canada.

Many low-cost carriers provide service on AT&T's 5G and 4G LTE networks, and I've reviewed many of them. Cricket Wireless, AT&T's own prepaid brand, tends to be more expensive than its competitors. H2O Wireless includes international calling, but its plans don't offer the same value. While Good2Go Mobile has competitive pricing but lacks variety in its plan options and isn't as well known.

With its ideal blend of affordability, strong features, and flexibility, Red Pocket is my top recommendation for AT&T customers.

• Multi-line discounts – Add extra lines and get a discount off each one, making it easy to save on family plans.
• International perks at no extra cost – Free calls to 80+ countries and roaming in Mexico and Canada add extra value.
• No hidden fees & risk-free sign-up – Simple, transparent pricing and a 7-day eSIM money-back guarantee let you try the service worry-free.

How to choose the best prepaid or postpaid plan

What network coverage do you prefer?

Network access is a key consideration wherever you live, but especially in rural areas. Luckily, low-cost carriers operate on the same 5G & 4G LTE networks as major carriers. T-Mobile scores the highest for 5G coverage, according to an Opensignal 5G Experience Report (2023). If there is a particular network you prefer, choose an MVNO that operates on that network. Use our coverage checker to find the best cell phone service in your area.

How much data do you need?

Do you really need an unlimited data plan? The big wireless companies want you to believe so, but in reality, the average monthly cellular data consumption is around 10GB. However, if you spend most of your time at home or work on Wi-Fi, it's likely your cellular data usage will be much lower. You can choose a data plan tailored to your needs with cheap cell phone providers, meaning you can pay less if you use less. But if you do choose an unlimited data plan, be aware that high-speed data is normally capped.

Is hotspot data included?

Most carriers allow hotspot data usage but limit the amount of data that can be used via tethering. The limit depends on the carrier and plan you choose. Some carriers also offer data only plans so you can access the internet on mobile devices like iPads, tablets, and mobile hotspots when Wi-Fi's not available.

What's the monthly price?

While big wireless unlimited plans cost around $75-90 per month, the best MVNOs offer budget-friendly plans, ranging from $5-35 per month without sacrificing wireless coverage and data speeds. Watch out for hidden fees & taxes; some carriers include these in the price, and others, such as Verizon and AT&T, don't.

How many lines do you need?

With big wireless, you only get the advertised price if you buy four lines. With MVNOs, the price you see is the price you pay, even for one line. Many low-cost carriers now offer further discounts for multi-line plans.

Can I bring my own phone or buy a new device?

While the big three love keeping their customers locked into a constant phone upgrade cycle, MVNOs encourage you to bring your own phone. This means you take back control and only change your phone when it suits you. If you do want to purchase a new phone, many MVNOs offer an affordable and easy way with 0% financing over 1-2 years.

Are there any deals or promotions?

Big wireless promotions can seem good at a glance. But once you read the small print, it often leads to buying things you don't need and committing to 3-year phone contracts. Many MVNOs offer short-term introductory promotional pricing for new customers, and their pricing is much more transparent.

What perks or add ons can I expect?

Most big wireless plans include "free" TV subscriptions. Initially, these seem like a great deal. However, these usually turn into a paid subscription that is automatically added to your bill a few months down the line. A few low-cost carriers, such as US Mobile, do offer plan options with free subscription services, but we generally recommend keeping these subscriptions separate so you don't end up paying for things you don't need.

Is international calling included?

Most MVNOs offer free international calls to many countries. If this is important to you, make sure to choose a carrier that includes this.

Are there parental controls?

Some Mobile Virtual Network Operators (MVNOs) provide parental controls that allow parents to monitor their children's cell phone usage and data consumption. By using these features, you have the ability to establish limits on data usage, limit access to specific apps or websites, and even keep track of your child's whereabouts. These capabilities are accessible either through subscription plans or can be adjusted in the settings of your mobile device.

Check out our cell phone plan comparison to ensure you find the best deal.

AT&T prepaid vs AT&T postpaid

Boost Mobile unlimited data plan

• AT&T & T-Mobile 5G & 4G LTE networks
• Unlimited talk and text
• Unlimited data

$25/mo

See at Boost Mobile

AT&T vs Boost Mobile comparison

Keep your AT&T phone, number & coverage: Save $600 per year

T-Mobile prepaid vs T-Mobile postpaid

Mint Mobile unlimited data plan

• T-Mobile 5G & 4G LTE network
• Unlimited talk and text
• Unlimited data

$30/mo*

*$90 for 3 Months

See at Mint Mobile

T-Mobile vs Mint Mobile comparison

Keep your T-Mobile phone, number & coverage: Save $540 per year

Verizon prepaid vs Verizon postpaid

US Mobile unlimited data plan

• Verizon, AT&T & T-Mobile 5G & 4G LTE networks
• Unlimited talk and text
• Unlimited data

$25/mo

Verizon vs US Mobile comparison

Keep your Verizon phone, number & coverage: Save $600 per year

What are the benefits of prepaid phone plans?

• No Contracts or Credit Checks. One great benefit is flexibility. Prepaid cell phone plans allow you to pay on a month-to-month basis, keeping you from getting locked into a contract you might not be able to afford or want later on down the line. Cheap prepaid cell phone plans are also available without a credit check for customers with low or no credit scores who are unable to qualify for long-term plans.
• Customized Plans. 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 postpaid cell phone plan, you pay a specific amount per month for a blanket of services. 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 the service. You simply buy the phone you want and the corresponding monthly service amount that best fits your needs. Conversely, with postpaid 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.
• No Termination Fees. With a postpaid 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 that 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.
• No-Risk. Because prepaid cell phones don't require a long-term commitment, there's no risk in simply trying the service to see if it's worth the savings. If you find that the coverage is too limiting or the service insufficient, you can always change your plan the following month.

What are the benefits of postpaid phone plans?

• Get the newest phones: As your 24-month payment plan nears its end, you may be eligible to upgrade to the latest and greatest cell phones. If you love technology and enjoy staying on the cutting edge of cell phones, a postpaid cell phone plan is for you. Some cell phone carriers even offer early upgrading.
• Never run out of data: No matter what postpaid cellphone plan you purchase, and no matter how many gigs of data are allotted to you, you'll never truly run out of data anymore. As of the time of this writing, all the major cell phone carriers provide extra data to users who exceed their monthly limit. You can be sure that you'll never run out of minutes, texts, or data.
• Extras and Bonuses: Not many prepaid cell phone plans have gotten on the bandwagon and offered special bonuses and services for their consumers. On a postpaid cell phone plan, you can find carriers that offer unlimited video streaming, cloud photo storage, hotspot capabilities, and more.
• Great for families: Postpaid cell phone plans are often perfect for families or large groups of people who want multiple lines tied to a single account and under one monthly bill. Many carriers offer specific family cell phone plans that you can see here.

Find the best cell phone service in your area

Prepaid carriers offer the best value for money

Now that I've discussed both kinds of cell phone plans, which one is better? Well, like most things in life: it depends.

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.

On the flip side, a postpaid cell phone is perfect for those who want to stay up-to-date with the most advanced devices, families with multiple lines, and large data users. You won't have to worry about refilling your minutes and data every month, and you can experience plenty of neat perks.

Ultimately, the best cell phone plan is the one that fits your lifestyle and budget and actually covers where you live.

Compare the cheapest prepaid phone plans

Prepaid vs postpaid plans FAQs

Recap - Are prepaid or postpaid plans better?

It's a personal preference whether prepaid or postpaid plans are better, but there are pros and cons to both.

If you love upgrading your phone to the latest handset every 36 months, then postpaid plans are best, but if you're looking to save money, prepaid plans from low-cost carriers could save you hundreds of dollars a year.

Most of the low-cost carriers do offer cell phones, including the latest smartphones from Apple and Samsung, but you'd have to pay upfront for the phone. However, some do have an interest-free loan available to pay in installments.