Prepaid phone plans are able to deliver consumers an increased amount of telecommunication flexibility—but they can also be quite confusing. Since their introduction in the early 2000’s, prepaid phones have actually come quite a long way.
“Each prepaid phone carrier and plan is slightly different, therefore if you are looking to eliminate your current contract and embark upon a less expensive option, prepaid is ideal for you,” said Issa Asad, a Florida CEO and entrepreneur of several telecommunications companies located in Miami, Florida.
The following is Issa Asad guide for prepaid phone plans. Use this guide to differentiate between several types of prepaid phone plans and select the right plan for you and your family.
1. Monthly Plans
This is the most common of the prepaid plan options and is most familiar to those that have previously had contracts attached to their mobile devices. Just like most of the regular contract plans, the service for your phone will renew every thirty days. The vast majority of the plans available for prepaid accounts, offer consumers with unlimited text and talk along with a limited amount of data. There are a handful of carriers that plans where all aspects are limited, therefore it is important to ask your desired carrier precisely what they are able to offer.
When you undertake a prepaid plan, overages are not permitted and the service is paid for at the beginning of each month. Since there is no contract involved, you are able to cancel or change plans are you desire with no threat of added fees, etc.
2. Pay-As-You-Go Plans
These plans are what generally come to mind when most people hear the term “prepaid phone plans”. With these plans, consumers are able to purchase cards that have a limited amount of funds that can be loaded onto their account. Whenever a consumer browses the Internet, sends a text message, or a call is made, they are charged a per minute/text/MB rate. Once the account is depleted to $0, additional funds will need to be loaded in order for services to continue.
This is an option that offers nothing unlimited. Each function of the phone must be paid for and services are discontinued at the moment that the funds are depleted. When deciding on this type of plan, it is best to shop around; different carriers have different rates for their services. You are able to cancel services at any time given that there is no contract involved, but you will need to keep in mind that the cards are nonrefundable. With that being said, it is best to wait until you have depleted the current card before changing providers or plans.
3. Feature-Based Phone Plans
This is a great option for those that simply need the most basic of phones for just texting and calling. Carriers have plans that cater specifically to flip phones and other basic phones, and their plans are no different from prepaid monthly plans.
4. Postpaid No-Contract Plans
This type of plan tends to be the most confusing to consumers. It is best described as a hybrid of prepaid plans, pay-as-you-go, and contract plans. Basically, you are billed at the end of the month for your services without a contract; rates and prices are generally lower. There are carriers that bill at rates very similar to those of pay-as-you-go plans, therefore you will need to consult with your desired carrier for more details.