Prepaid Cell Phones
"I've noticed that Verizon, AT&T and other mobile phone providers are offering pre-paid cell phone with pay-as-you-go billing. I like the idea of not having a long-term contract, and I only need my cell phone for emergencies. Would a pre-paid cell phone be a better option for me?"
Save Money With a Prepaid Cell Phone?
Prepaid cell phones allow you to get a cell phone and pay for service without having to enter into a long service contract. Generally, it's a "pay as you go" arrangement, which requires no deposit or credit check. You can purchase a block of minutes, talk until they're used up, and then buy more minutes. For people who don't use a lot of minutes every month, or don't want to be locked into a long-term contract, a pre-paid cell phone can be a very good choice. About fifteen percent of cell phone users opt for a pre-paid plan, so if you're looking for a cheaper way to carry a cell phone for limited use, then consider using prepaid cell phones offered by Verizon, AT&T, T-Mobile or Tracphone.
So how much does a pre-paid cell phone plan cost? Figure on paying $20 to $80 upfront for the phone itself, then about 10 cents a minute for talk time. Keep in mind, though, that while prepaid cell phone programs are offered by most of the major cellular phone companies, you generally have a limited selection of phones to choose from, the service range is more limited than regular cell phones and you may be subject to more usage limitations than a regular cell phone. Each carrier has different fees and billing options, so let's take a look at some of the pre-paid cell phone offerings from the major players...
Verizon Prepaid Cell Phones - INPulse
Verizon Wireless INPulse offers three different prepaid cell phone plans, Core, Plus and Power. These plans allow you to package the types of minutes that you use the most in order to get the best price. For example you can select whether you want to pay per minute or to get unlimited night minutes, weekend minutes or text messaging. You can also select an INPulse® plan that has the number of base minutes that makes sense for you.
Another perk that the INPulse® plans offer is that you only have to pay for the days that you actually use your phone. This means that if you only make or receive calls ten days out of the month, then you will only have to pay for the ten days that you actually used your phone. In addition to paying only for the days that you use your phone, you will also get unlimited INCalling, which is calls to other Verizon Wireless customers, and you get VZ Navigator and V Cast Music.
AT&T Prepaid Cell Phones - GoPhones
AT&T's prepaid cell phone program is called GoPhones. GoPhones offer you several ways to prepay your phone service. You can pay for your minutes by buying prepaid phone cards from a store, by adding minutes online or by adding minutes over the phone. The key benefits offered by GoPhone plans include the ability to earn bonus minutes, the ability to select unlimited nights and weekend minutes plans, the ability to add a Media Net package, unlimited minutes when you call other AT&T wireless members, rollover minutes and no extra charges for making domestic long distant calls.
T-Mobile Prepaid Cell Phones - Pay as You Go
The prepaid cell phone program offered by T-Mobile is simply referred to as their Pay as You Go Program. This program offers you the ability to prepay your plan on a monthly basis. You can select between several great packages. Each package will offer you a different collection of features that relate to weekend minutes, night minutes, myFave minutes and day minutes. The cheapest packages will have the fewest day time minutes and the fewest unlimited minutes. Family packages are also available.
Tracfone Prepaid Cell Phones
Tracfone was one of the first companies to offer prepaid cell phones. This company allows you to choose between several different brands of cell phones and it allows you to buy your minutes in the form of a prepaid phone card. These cards can be purchased in stores or they can be bought virtually online. The advantages of this prepaid cell phone option are that it is easy to find, easy to use and you don't have to have a credit card as you can pay cash for your prepaid cell phone cards. Tracfone uses the AT&T network, so coverage will be good in most parts of the US.
Pros and Cons of Prepaid Cell Phones
Prepaid cell phones are great if you don't use your cell phone that much. They simplify the process of owning and using a cell phone by allowing you to buy the phone that you want and prepay for minutes that you will be using during the upcoming weeks. You don't need to have a credit card, you don't have to sign a contract and you can cancel your relationship with the cell phone company at any time. It can be a good deal if you want to give a cell phone to a child or senior who will only need it on an occasional basis.
While these perks are great, the drawbacks of prepaid cell phones can quickly mount if you use your cell phone a lot during the month. If you use your prepaid cell phone a lot during a month you will have to frequently buy prepaid phone cards or frequently load your phone with more minutes. Also, since prepaid minutes are generally more expensive than contract cell phone minutes, you will rack up a larger monthly bill using your prepaid cell phone than if you had a contract cell phone plan that offers you unlimited minutes.
Selecting the Right Type of Cell Phone Plan
When shopping for a cell phone and cell phone service package you need to determine what is going to be better for the amount of time you spend on your cell phone. People who use their cell phones infrequently, or who just want a cell phone in case of an emergency, are generally better off using a prepaid cell phone, while people who spend a lot of time on their cell phones are better off signing up for a regular cell phone contract.
Here's my advice... talk to friends or neighbors in your area who have cell phones, and find out which carrier has the best signal and coverage in the locations where you plan to use the cell phone. It's not uncommon for phones from one carrier to work great in a certain location, while another carrier has a weak signal or none at all. Then use the links above to compare the pre-paid plans offered by the cellular companies that have good service in your area. Try a pre-paid cell phone for a month or two, and if you find you're using it more than you anticipated, upgrading to a service contract with a set monthly fee may make sense for you.
Do you have a pre-paid cellular phone? Post a comment and tell us about your experience...
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Posted by Bob Rankin on January 19, 2009 05:57 PM
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Most recent comments on "Prepaid Cell Phones"
(See all 42 comments for this article.)Posted by:
Phil
23 Feb 2009
After studying several of the plans mentioned and a few others, I opted to go with T-Mobile's about 1 year ago.
T-Mobile in my area works fine, so that hasn't been an issue. What really made me decide on T-Mobile were the rates. The more minutes you buy, the less per minute cost - as with all of them. But what I really like with T-Mobile is that after spending $100 (which I finally did last month) in buying more minutes, the minutes are good for a year. And I get 15% bonus minutes now having reached the $100 threshold.
I originally started out with $25 worth (came with the phone - thus the phone cost me almost nothing), then two $10 purchases and last fall I bought $50 worth knowing from Dec - Jan I would be using the phone more on several trips away from home. My recent purchase of $10 worth of minutes put me over the magic $100 - again giving me 15% more minutes and a year before expiration.
Not sure if T-Mobile has changed its plans, but my plan is a basic plan with $10, $25, $50 & $100 amounts that can be used to recharge your minutes.
I think what is referenced in this article ... "This program offers you the ability to prepay your plan on a monthly basis. You can select between several great packages. Each package will offer you a different collection of features that relate to weekend minutes, night minutes, myFave minutes and day minutes" refers to their normal contract plans.
Posted by:
mark
25 Feb 2009
I live in Germany so when I came back to the States to visit my family I needed a cell phone for a short time. I found a NET 10 phone for $25 with 300 minutes of airtime ($30 worth). It would have been cheaper to throw the phone away than to buy more minutes! Normally you can get these phones at Walmart. They are owned by trac phone therefor use the att network. To me it was the most transparent system: 10c for all minutes anytime and I never was out of a coverage zone. (And 15c a min to Germany and most pf Europe and Mexico). Then at the airport someone asked to borrow my phone to make a call. I really enjoyed being able to say to him, "Keep the phone." He insisted on giving me a $5.00 tip. SO it cost me only $20 for 2 months of cell service and I had the convenience of always being in touch.
Posted by:
Jim
06 May 2009
I have had tracfone service for several years with no problems. It used to be a problem adding minutes online but they solved that. I live in Ohio and have a hard line, spend several months in florida. Campground has free wi-fi, so receive calls on tracfone, hangup and return call using skype on wi-fi with laptop.
Posted by:
Kent
14 May 2009
I have tried several brands of pre-paid mobile phone services, and have found Virgin Mobile to be the best! I pay about $25.00 a month for 200 minutes and 200 texts. If you buy a new minute pack 1 day before the expiration date of your current minute pack your remaining minutes roll over! I have a pretty good signal in my local area, but if you do a lot of traveling in remote area's use Verizon, it works nearly everywhere, but is more expensive!
Posted by:
LEONARD
29 Jul 2009
virgin mobile sells prepaid cards,$25 for 2 months after 2 months they cut the service off even if you don't use the phone. how can they get away with that? Isn't that a ripoff? Do other company's do this?
Posted by:
Cheryl
04 Sep 2009
I've used T-Mobile pre-paid for several years and have absolutely no complaints. After the first initial purchase of $100 (can be done in increments of $10, $25, $50 or $100), you get extra minutes. They expire in a year, which may be a downfall for some if they don't use it very much. For $25, I get 140 minutes of talk/text time.
Posted by:
Cheryl
26 Dec 2009
I have used NET10 for over 4 years. It has been excellent for me in Northeast Oklahoma.
With every new phone purchase (3) an extra 300 minutes has been included. The latest phone purchase was because I lost my phone.
I called customer service after buying a new phone and they transferred my 3000 plus minutes to my new phone. I don't use it often, but find it very handy at work, never a roaming charge, good connections, and always 10 cents a minute.
I buy a 300 minute card every 60 days = $15.00 per month, plus tax.
Posted by:
Cheryl
26 Dec 2009
A new service from Tracfone, available at Wal-Mart is Straight Talk.
A friend has this service and it is great for him! At this time there are three phones available from $40. to $100. (the last has a full slideout QWERTY keyboard, as well as other features).
There are two plans available at this time: $30. and $45. PER MONTH. $30. for 1000 ANYTIME minutes, 1000 texts, and several MB of internet data. The $45. plan includes UNLIMITED everything: minutes, texts, internet.
Posted by:
Ven
24 Feb 2010
My wife and I use the Verizon INPlus Core (pre-paid) plan. Between us we might use 30 minutes a month(probably less). We each buy $100. and it lasts us a year, sometime with time left over. This is not a good thing because the left over minutes are lost. We are thinking about switching to the Basic plan. Neither of us talk much more than 1 or 2 minutes at a time. Our ages 76 & 70. We don't text.
Posted by:
Kevin
17 Mar 2010
In response to Ven's post of 2/24/10:
You are exactly the light user that I am. As I posted one year ago, with Page Plus prepaid I can pay as little as $30 a YEAR per phone ($10 every four months) plus the unused minutes always will roll over. So even if you were to put in their minimum $10 at first, you will have 100 minutes (an average of 25 mintes for each of the first four months). Then, as you carry over with each refill, your unused minutes will add up and be available whenever you need them.
If you want to be safe, though, you might want to start with a larger initial amount and subsequently refill only as much as you see yourself using. One note to heavier users: a different version of their service now offers what they say is unlimited "talk n' text" for $39.99 a month - with nothing more for taxes or anything else. (Competition from Boost and Metro PCS really started heating things up!) I don't need to go for that, personally. I just use the maximum refill rate, under their standard deal, paying $80 every four months which boils down to a 5 cents a minute discount rate for me. Weird thing is, I keep accumulating more and more minutes that I may never need. They will keep carrying over unless I miss a refill deadline (I'm careful, though!)
Their pre-paid service can be used by anyone with a Verizon-compatible phone like yours (after you discontinue any Verizon plan it has been used under, of course.) As a reseller of Verizon tower access, their coverage is probably identical to the coverage you get now. That has been the case for me and I have never found the phone to "roam", though I admit I use it only in my own major urban area (New York).