Select and set up your Prepaid plan FAQs (2024)

FAQs

What is the downside of a prepaid phone plan? ›

Here are some other disadvantages with prepaid cell phones. Expiring minutes and service: The minutes you buy for your prepaid cell phone may come with an expiration date of 30 or 90 days. If so, you'll lose them if you don't use them by then. You also may need to buy minutes regularly to extend the activation period.

With a prepaid plan, you know exactly what you're getting, and, importantly, how much it's costing you - no surprises. Pre-transparency in billing avoids any unwanted shock of overage fees on your monthly bill, ensuring you keep your budget under control.

There are only a few downsides to using prepaid cards, but they are significant. Prepaid cards come with fees. Cardholders may have a lot of fees, including activation fees, transaction fees, ATM withdrawal fees, reloading fees, monthly fees, or inactivity fees. Check the fine print on the card for fee types.

Disadvantages of prepaid debit cards

If used effectively, credit cards are a better option, but may be difficult if you have a low credit score. Fees: There are additional fees involved with using and purchasing a prepaid debit card, which may make them more expensive than a traditional debit card.

Postpaid phone plans may be what most people use, but prepaid plans are often the best deal. Not only do they have lower monthly rates, but they also don't tempt you with lengthy financing agreements. And if your credit score isn't the best, that's no problem.

Prepaid plans tend to be low priority, so their speeds are slowed down first. All told, prepaid plans are great for people who want an affordable phone plan, and don't need consistent access to high-speed data. If you're someone who only uses your phone to make calls or text, they might be right for you.

Prepaid plans are some of the cheapest cell phone plans – ideal for the budget-conscious consumer. However, while most prepaid plans these days offer unlimited domestic calling and texting, there's often a cap on how much wireless data you can use per month.

Let's start with some basic definitions: Prepaid plans: Prepaid plans require you to pay your bill before you receive service. These plans almost never require a contract, so you'll be paying month to month. If you don't pay your bill, your service will be cut off.

Do prepaid phones need a contract? ›

Buying a prepaid phone.

Enjoy the freedom of a no-contract, prepaid cell phone from one of many top brands that is conveniently paid for as you go. By paying for a specific amount of data usage and talk minutes in advance, you know exactly how much is allotted on your device.

Many people use a pre-paid phone card because of the card's convenience - it can be used anywhere and, since you pay in advance, there is no bill. Pre-paid phone cards are popular among travelers, students, people who frequently call overseas, and those who haven't selected a long-distance service.

4 Cons of prepaid plans

You may also miss out on some perks, such as free streaming, roaming, or hotspot. You may also have to pay upfront for your phone or device, or use an unlocked one that is compatible with your carrier. You may also have to deal with lower customer service or support.

"While burner phones offer a higher level of anonymity compared to regular phones, they are not completely untraceable," Aggarwal says. "Burner phones can be traced by law enforcement agencies using various methods, such as call detail records (CDRs), location tracking, surveillance and Stingray devices."

Can I bring my own phone to use with a prepaid plan? Yes. Bring your compatible unlocked device, including iPhones, and save on the cost of a new one.

The strict difference between prepaid vs. postpaid plans is when you pay your bill. Prepaid cell phone plans tend to be cheaper, but they usually come with fewer perks and features.

Prepaid plans are ideal for those looking to save money and come with their own phone or payment must be made outright for a new phone. Postpaid plans work best for those who need more additional features like international calling and want to finance a new phone purchase.

With a contract, you can trust that you'll be able to call, text and use your internet whenever you want (as long as you have signal). With prepaid, you know exactly where your money goes, but once that money is gone, it's gone.