| If you are on the market for a new wireless plan | | | | prepaid plan. |
| you may be wondering if a prepaid or contract | | | | Cons of Prepaid |
| plan is the best option for you. | | | | - Cost Per Minute & Text While you will |
| There are a few things to take into consideration | | | | always know how much you're spending on your |
| before you make your final decision. | | | | prepaid phone, your cost per minute and cost per |
| Pros of Prepaid | | | | text message is much higher than it is on a |
| There are many good points about selecting a | | | | contract plan. |
| prepaid or "pay-as-you-go" wireless plan. | | | | - Limited Selection With a prepaid contract you |
| - No Credit Checks! Most carriers will ask for your | | | | are very limited to the type of phone you can |
| social security number and then run a credit check | | | | pick. You might be able to get a camera phone, |
| on you before allowing you to set up an account | | | | but you are not likely to get a phone that you |
| with them. If your credit score is below what | | | | can use to access the internet or check your |
| they think is acceptable you will be asked for a | | | | emails. |
| deposit. The deposits, depending on your credit | | | | - Roaming If you plan on leaving your home area |
| score, can be as low as $100 or as high as $1500. | | | | you might find that you are limited in where you |
| There are no deposits required for a prepaid plan. | | | | actually have roaming coverage with your prepaid |
| - No Surprise Bills! You will never have any | | | | phone. |
| surprises at the end of the billing cycle! Always | | | | Cons of Contract |
| knowing exactly how much you can afford to | | | | - Credit Check Before you sign a contract with |
| spend on your mobile phone plan and knowing | | | | your carrier they are going to ask you for your |
| that you cannot go over that amount is a huge | | | | social security number so that they can perform |
| relief. | | | | a credit check. If you have bad credit you may |
| - No Contracts! You are not tied to a contract; so | | | | either be denied service with them or asked to |
| if, at any point, you want to cancel your account | | | | pay a large deposit before they will give you |
| or switch to another carrier you will be able to | | | | service. |
| without the need to pay a huge penalty. | | | | - Breaking The Contract If are still within your |
| Pros of Contract | | | | contract and you move to another area or just |
| A contract with a carrier locks you into a specific | | | | want to switch to another carrier you will be |
| term with them; most commonly 12 or 24 | | | | asked to pay a contract termination fee. This fee |
| months. There are several benefits to signing a | | | | can be pro-rated to the number of months left |
| contract with a carrier. | | | | on the contract or it could be a large fixed fee of |
| - Free Phones When you sign a 1 or 2 year | | | | over $250. |
| contract you can often get a free or at least | | | | - Upgrade Phone If you break your phone or |
| heavily discounted phone from your carrier! This | | | | want to just upgrade it you will find that the |
| can allow you to own a much nicer phone, one | | | | carrier will either ask you to sign a new contract |
| that is capable of accessing the internet, and | | | | or they will charge you full price on the new |
| email. | | | | replacement phone. |
| - Free In-Network Calls Most carriers will let you | | | | - Making Changes If you make any changes to |
| call friends or family for free if they are on the | | | | your plan your carrier could see this as |
| same network as you are. Those that don't let | | | | automatically renewing your contract, locking you |
| you do free in-network calls will often, instead, let | | | | in for another two years. |
| you have free calls to a specific number of your | | | | There are good and bad points to both prepaid |
| contacts. | | | | and contract; you just need to decide which of |
| - Cheaper If you stay within your block of | | | | the two options best suit your lifestyle and most |
| minutes per month you will find that you have a | | | | importantly your budget! |
| much cheaper rate per call than you do with a | | | | |