In this day and age, bills are a plentiful, cumbersome part of most people’s lives. For this reason, many turn to prepaid cell phone plans, which allow customers to own and use cell phones without being tied into a contract.
Prepaid cell phone users pay as they go and only for what they use. This option has attracted many, while others shy away and stick with traditional contract plans.
Pro: If You’ve Got Money, You’ve Got a Phone
More than ever, major companies focus on credit scores. For those with low credit scores, even if the score is from no fault of your own (such as identity theft or a mistake by the credit bureau), it can be hard to get a new cell phone and a new plan. The phone giants may be able to look past a few scars on the report, but may not allow you to open an account for their open protection.
Conversely, prepaid cell phone companies have no issue at all with credit score problems. Why, you ask? Because they’re only extended as much service as you pay for ahead of time. The companies won’t hassle you about a previous delinquent account if you put down $200 worth of service when purchasing your prepaid phone. T-Mobile prepaid smartphones are available to customers without having to sign on the dotted line. This type of plan protects both parties.
Con: It’s Going to Cost You
Unlike contract plans, prepaid cell phone providers charge by the minute for phone calls. If you’re the type that burns up minutes talking on the phone frequently, this will come back to bite you. This type of plan ends up being more costly than a standard rate plan, which issues bills in a flat fee that doesn’t change unless you go over the set amount of minutes and data allotted in your plan.
Pro: No Bills, No Penalties
With T-Mobile prepaid smartphones, there’s no monthly bill to worry about, meaning no concern with juggling payments and due dates. You simply add minutes to your phone whenever you’re running low or feel the need. This comes in handy in those situations where funds may be low. With a contract phone, if the due date rolls around and you don’t have the money, not only will your phone service be interrupted, but you’ll have to pay a late fee in addition to your bill to get it reinstated. If you run out of minutes on your prepaid phone, you’ll simply be without phone service until you decide to add more.
Con: No Contract, No Credit
While credit scores are often mentioned as something that hurts you, it actually works to your advantage. Having a phone contract open builds a credit track record. For someone with new credit, this is essential. Car notes and mortgages are hard to come by for newcomers, so a phone bill is an excellent method to begin establishing credit for yourself.
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