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Prepaid vs. Postpaid vs. Pay As You Go Cell Phone Plans: Which is Best for You?

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Prepaid vs. Postpaid vs. Pay As You Go Cell Phone Plans: Which is Best for You?

Choosing a new phone isn’t as simple as deciding on your favourite brands or the features you want or need most.Everybody want to choose the cheapest cellphone plan for themselves.When buying a new phone plan, most people choose between a prepaid,postpaid and the pay as you go plan.But if you've never taken out a cellular plan for yourself or haven't shopped around much, you might not know the exact differences and benefits of each type.

Is prepaid better or postpaid?Does prepaid mean no contract?Is pay as you go and prepaid the same thing?Is pay-as-you-go cheaper than pay monthly?Whats'the difference among prepaid,postpaid and pay as you go plans?and Prepaid vs. postpaid vs. pay as you go plans:which is right for you?Here's what to know about prepaid,postpaid mobile plans and pay as you go plan,And how to figure out which one you should choose.Keep reading.

Cover Photo:att.com

What is Prepaid Plans?

As the name suggests, prepaid mobile plans are paid in advance of usage.A prepaid plan refers to a cellular service contract where a customer (person or business) pays in advance by purchasing the mobile service allowance on credit. The allowance usually includes fixed rates for voice, text and data services.Subscribers on this plan will conveniently prepay for a certain number of minutes of usage and data of every minute, day, week, and month.Prepaid plans are the easiest way to access a mobile provider's services, as well as the most affordable and flexible.

Prepaid mobile phones do not require a contract and the consumer pays for minutes or time in advance. If a user fails to pay, they do not incur fees or service deductions and the phone becomes disconnected from service until another purchase is made.

Prepaid mobile phone packages are also described as no-contract cell phone plans, as there is no need for a monthly contract. Usually, prepaid plans are less costly than postpaid packages, but they do not have as many added benefits or features. Prepaid mobile plans tend to operate on a fixed recharge cycle, which can get confusing. Paying for an extremely short time (seven days) or really long time (six or even 12 months) is straightforward in terms of expectations, but paying for the more popular variant – a month – is where things get tricky.

The Advantages & Disadvantages of Prepaid Plans

Advantages

Disadvantages

No credit check: Even if you have poor credit or no credit history, you can still get a prepaid plan.
No contracts: You're not tied to a lengthy service contract, so you can stop or pause your plan at any time.
No overage fees: Since you pay for your service upfront, it’s not possible to go over your talk, text, or data allowance. If you run out, you have to wait until the next billing cycle, or in some cases, you can add on additional minutes, messages, or data.
Customized Plans: Many prepaid carriers offer the ability to build your own plan.
Easy Sign-Up Process: You simply buy the phone you want and the corresponding monthly service amount that best fits your needs.
Better parental controls: Parents can buy a budget phone for their child or teenager and limit the minutes, texts, and data they can use.
Family plan options: Many prepaid carriers offer multi-line plans, which could save you even more money in the long run.
No-Risk: Because prepaid cell phones don't require a long-term commitment, there's no risk in simply trying the service to see if it's worth the savings.
Lower price: You only pay for the data you use, so a prepaid plan can save you money. This is especially true if you mostly use phones for talking and texting, which are often priced separately (and more cheaply) than data plans.
No Termination Fees.

Fewer perks: Prepaid plans tend to include fewer perks, such as entertainment features or international roaming.
Device interest: Many MVNOs partner with a third-party financing company that charges up to 30% interest on phones.
More expensive phones: You have to pay full price for your cell phone when on a prepaid plan. Although there are low-cost cell phones on the market, youll have to pay the full retail price if you want a smartphone.
Data deprioritization: Some prepaid carriers deprioritize your data in favor of customers on the parent network.
Small phone selection: Some small carriers have a very limited phone selection, carrying just a few older or refurbished models.
Time Limits: Some data plans come with unlimited talk and text, but those with low or no data options typically impose time limits and restrictions on the number of texts you can send.
Limited international roaming capability.

Who are Prepaid Plans Best for?

They prefer plans that do not require credit checks.
They own an unlocked smartphone.
They want an affordable phone plan.
They want a wide variety of phone plan options.
They primarily need their phone for talk and text.
They have consistent and reliable WiFi access.
They want a hassle-free way to control their child’s phone usage.
They want the flexibility of building their own plan.

Prepaid plans aren't just for seniors and students these days. Anyone looking to benefit from predictable expenditure and who has a handset they're happy with should consider the savings of a prepaid plan.

What is Postpaid Plans?

A postpaid mobile phone plan or subscription refers to a cellular service contract where a customer (person or business) is billed for the mobile services on a monthly basis at the end of each monthly bill cycle after consuming the services they are entitled to use.A cell phone plan that allows you to pay your bill after you’ve received service each month is known as a postpaid plan.

For a postpaid account, you will get a monthly net bill based on a predefined amount, which might vary based on your monthly usage. This plan is best adapted to those who have a steady source of revenue.Most mobile operators prefer customers to stay on postpaid plans as it assures them of a longer contract with the customer and a fixed amount. Hence, customers tend to get multiple benefits with postpaid SIMs.

A postpaid or contract phone plan is more formal. Since you are billed monthly for the services you use from the network, you need to have an account with the mobile provider.This may also require you to have a credit record and good credit in order to take out a contract.

Similarly to prepaid plans, you select specific bundles of data and voice minutes depending on your needs. Some postpaid plans also allow you to top up your monthly quotas for discounted rates.But because of the formality of postpaid plans, they are harder to cancel and may attract cancellation fees.Although postpaid plans no longer lock you into a service contract, buying a smartphone on a monthly installment plan can somewhat resemble a contract, since the carrier locks your phone to its specific network until you’ve paid it off entirely.

The Advantages & Disadvantages of Postpaid Plans

Advantages

Disadvantages

Never run out of data: No matter what postpaid cellphone plan you purchase, and no matter how many gigs of data allotted to you, you'll never truly run out of data anymore.
Better plan benefits: Depending on the plan, postpaid options usually have better plan benefits or inclusions like bigger data, text, or call allocations, and customer service perks.
Renewal benefits: Once you have satisfied your contract with the telco, you’ll be eligible for a contract renewal, and most of the time, it comes with extra perks.
Entertainment: The Big Three's unlimited plans include free entertainment features, such as Hulu, HBO, Netflix, and Amazon Prime.
Great for families: Postpaid cell phone plans are often perfect for families or large groups of people who want multiple lines tied to a single account and under one monthly bill. Many carriers offer specific family cell phone plans that you can see here.
Travel perks: Each of the Big Three carriers includes travel benefits, such as Mexico and Canada roaming, global text, and international data, with their unlimited plans.
No overage fees: Once you reach your premium data, your data speeds are temporarily slowed until the next billing cycle (although you will be charged for going over on limited data plans).
Get the newest phones: If you love technology and enjoy staying on the cutting edge of cell phones, a postpaid cell phone plan is for you. Some cell phone carriers even offer early upgrading.
Unlimited data: Although no plan is truly unlimited, these plans often include a nice amount of premium data.

Cost more: Postpaid plans, particularly unlimited plans, tend to cost more than prepaid plans.
Need credit check: Postpaid plans require a credit check to get started, which can be off-putting for those with poor credit or no credit history.
Needs requirements: Unlike prepaid, customers need to submit requirements when applying for a postpaid plan. That means filling out forms, presenting your IDs, and other documents.
Limited plan selection: Most carriers' postpaid catalogs include unlimited plans and a few select shared data plans.
The device is locked to the network: Although postpaid plans make it easy to obtain a device and pay for it in monthly installments, note that most of these devices are locked to the telco you got them.
Unused data: The majority of wireless customers don’t need unlimited data and may be better suited for a limited data plan.
Lock-in period: Subscribing to a postpaid plan is a financial commitment as you’ll be mostly locked in for 24 months or two years.
Utilization has to be closely monitored.

Who are Postpaid Plans Best for?

They have solid credit.
They consistently use at least 20GB of data/month.
They are willing to pay more for a plan with all the bells and whistles.
They want to buy a new smartphone on monthly installments (many prepaid carriers charge interest on device payment plans while the Big Three do not).
They want network priority and fast data speeds (MVNO data speeds are sometimes deprioritized in favor of customers on the main network).
They frequently travel, especially to Mexico or Canada.

Postpaid mobile plans are a great option for people looking to pay off a mobile handset. There are also perks to factor in, which may include data-free usage of audio or video streaming services, reward points, or cheap international roaming.

What is Pay As You Go Plans?

Pay as you go refers to prepaid cell phone plans with consumable minutes instead of a non-contract service plan. A user purchases minutes in card or digital form, and refills them as necessary depending on usage. Pay-as-you-go phone types differ in number of minutes per card and the length of time the phone will remain active between minute purchases.

Many teenagers, elderly and occasional cell phone users can benefit from call and text plans that allow you to pay for minutes only when you need them. These plans are recommended for people seeking the most economical way to have a cell phone. The Pay As You Go Plan is a flexible alternative to a monthly plan. Instead of paying a recurring monthly charge, you buy minutes as needed.

Is pay as you go and prepaid the same thing?

With prepaid plans, you pay in advance and once you've used up your plan you get disconnected from the service until you've bought another plan. If you Pay as You Go, you don't buy a plan but rather minutes, texts, and data.

The Advantages & Disadvantages of Pay As You Go Plan

Advantages

Disadvantages

Lower service costs: A pay as you go plan is one of the best ways to save on cell service,you pay only for the minutes that you use.
Flexible options to purchase additional airtime or data usage as needed.
No commitment.
Better cost-per-use.
Smaller barrier to entry.
Great as backup phones, for temporary use, or as short-term disposable cell phones.

High cost of minutes: Paying only for the minutes you use only saves you money if you’re not making many calls. The rates are likely to be higher on pay as you go minutes, and that can add up if you’re not careful.
Phone selection: The range of available phones to choose from is likely to be limited.
Adding the extras: If you want to use your phone for more than just calls, you’ll have to pay for mobile data service in order to send and receive text messages, check e-mail, or access the internet away from a Wi-Fi connection.
Difficult to predict revenue.
You also won’t get the level of customer service you might need if there’s an issue with the phone.

Who are Pay As You Go Plans Best for?

They prefer plans that do not require credit checks.
They own an unlocked smartphone.
They primarily need their phone for talk and text.
Short-term traveler.

The Differences between Prepaid and Postpaid Plan

Postpaid Plan	Prepaid Plan
Payment is made at the end of the month	Payment is made at the beginning of the month
More expensive	It is cheaper
Most times requires credit check	Does not require credit check
Come with more perks	Has very limited additional benefits
Can be based on contract	Hardly based on contract
Get deals on new devices	Rarely get deals on new devices
Billed once every 30 days	In addition to monthly plans, you can also avail yourself of daily, weekly, monthly, quarterly and yearly plans
Come with a proper and legitimate bill	don't offer an official bill or invoice, you might not be able to submit these plans as proper proof

Conclusion

Most prepaid plans are less expensive than traditional postpaid plans, and they allow you to forgo a credit check. Conversely, postpaid plans, although a bit pricier, require a credit check and often include more perks, such as entertainment or travel features.Both plan types have their advantages and disadvantages, and the right one for you largely depends on your wireless preferences.

Whichever way you decide to go, just be sure to compare a wide range of offers to find the best plan for your specific needs and preferences.

Best Prepaid Phone Plans in 2024

1. Mint Mobile - Best for Overall Value

>>Visit site

4GB	10GB	15GB	Unlimited
3 months	$15/mo	$20/mo	$25/mo	$30/mo
6 months	$20/mo	$25/mo	$35/mo	$35/mo
12 months	$15/mo	$20/mo	$25/mo	$30/mo

Mint Mobile stands out as the best overall value prepaid plan.Ranging from $15 a month for the entry-level 4GB data plan to $30 a month for the unlimited plan, Mint Mobile has a bit of everything for everyone - and at dirt cheap rates.

Mint Mobile operates on the T-Mobile network, and all its plans offer uncapped 5G data speeds where applicable. T-Mobile may not have the best coverage in the nation (though it is plenty good in most areas), but it does have the best data speeds. Once you reach your data limit, you’ll still have access, but your speeds will be throttled or slowed. During times of high internet traffic, you might also be deprioritized behind T-Mobile customers.

A lot of prepaid cell phone plans do away with special features and perks, like free hotspot data. But not Mint Mobile.With a Mint SIM card and an unlimited data plan, you’ll be able to turn your phone into a mini mobile hotspot.

To get the best prepaid plan with Mint Mobile, you must pay for the 12-month plan. Over the course of a year, this works out to the lowest monthly price available. However, you may also choose Mint's three or six-month plans if they are a better option.

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2. Visible - Best for Unlimited Data on A Budget

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Member	Price
1 Party Member	$40/mo
2 Party Member	$35/mo
3 Party Member	$30/mo
4 Party Member	$25/mo

While you can get unlimited for cheaper with Mint Mobile at $30 a month, Visible has the overall best value unlimited prepaid plan. Visible Wireless’s unlimited data plan comes with truly unlimited data. For $40 a month, you get unlimited data, calls and texts as well as free mobile hot spotting. Visible also operates a unique 'Party Pay' feature that allows you to reduce your bill. Bundle your plan together with three other users and you'll pay just $25 a month. Even better still, there are no hidden fees with Visible - which makes it extremely competitive unlimited prepaid phone plan cost about half of those offered over at Verizon, Visible's parent company.

Unlimited hotspot use is included in this plan, and Visible doesn’t throttle your data speed after you reach a cap. It runs on Verizon’s 5G ultra-wideband network where available and with a compatible cell phone. However, Visible says you may notice a slowdown of data speeds when the network is congested.International coverage includes calls and texts to Canada, Mexico, the U.S. Virgin Islands, and Puerto Rico.If you're looking for a plan to replace your home internet, this is a great option.

3. Verizon Prepaid - Best for Coverage and Perks

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Plan	Data	Price
5GB data plan	5 GB	$25/mo
15GB data plan	15 GB	$35/mo
Unlimited plan	Unlimited	$50/mo
Unlimited plus plan	Unlimited	$60/mo

Verizon is certainly not the most affordable way to go for prepaid cell phone plans, but it does offer the best coverage and speeds. 5G access comes as standard for all Verizon prepaid plans, as does free mobile hot-spotting, although free calling to Mexico and Canada is reserved for the 15GB data plan ($35/mo) and upwards. You can also opt to go for one of two unlimited plans, starting at $50 a month.

Verizon's best value option is its 15GB prepaid plan, costing $45 a month after a $5 discount for enrolling in auto pay. You'll get 5G coverage — though not the fast Ultra Wideband coverage that's about to expand dramatically — and the ability to use your phone as a mobil hotspot.

Each rate plan offers unlimited texting to more than 200 countries worldwide.Family plans are available at all rates, though your total costs quickly raise for a family of five.Fortunately, the higher cost equates to stronger coverage, as Verizon's network is widely regarded as the best in the country for download speeds and reception where and when you need it most.

Best Postpaid Phone Plans in 2024

1. Verizon's Unlimited Plan - Best Coverage

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Plan	Inclusions	Price
5G Start	No Contract 5G Nationwide Unlimited data Disney+, Apple Arcade or Google Play Pass, and Apple Music for 6 months	$70/mo(plus taxes & fees)
5G Play More	No Contract 5G Nationwide + 5G Ultra Wideband 50 GB premium network access, then unlimited data 25 GB premium mobile hotspot data,then unlimited lower-speed data Up to 50% off home internet Apple Music for 6 months Disney+, Hulu, ESPN+ etc.	$80/mo(plus taxes & fees)
5G Do More	No Contract 5G Nationwide + 5G Ultra Wideband 50 GB premium network access, then unlimited data 25 GB premium mobile hotspot data,then unlimited lower-speed data Up to 50% off home internet Disney+, Apple Arcade or Google Play Pass, and Apple Music for 6 months Verizon Cloud 600 GB Up to 50% off a watch, tablet,hotspot or Hum plan 1 TravelPass day per month	$80/mo(plus taxes & fees)
5G Get More	No Contract 5G Nationwide + 5G Ultra Wideband Unlimited premium network access 50 GB premium mobile hotspot data,then unlimited lower-speed data Up to 50% off home internet Up to 50% off a watch, tablet,hotspot or Hum plan 1 TravelPass day per month Verizon Cloud 600 GB Disney+, Hulu, ESPN+,Apple Music etc.	$90/mo(plus taxes & fees)

Verizon offers the most reliable network in most parts of the US, particularly outside of major metro areas. The 5 GB shared-data plan is a great value, with more than enough data for most people.While it isn’t the best choice for people who frequently travel outside of the US or who want unlimited data, it is a sounder choice for people looking for maximum coverage.

Verizon offers a ton of industry-leading unlimited 5G data plans,all of which include a nice set of perks, multi-line discounts and can be mixed and matched for better savings.They are great if you're looking for a plan that'll keep up with your streaming habits, and you have a little more cash to spend. $70 per month for a single-line user, Verizon plans are best value when bought with multiple lines on a single plan.

Verizon's Play More Unlimited and Do More Unlimited, both $80, add mmWave 5G and allot 50 GB of priority data, 15 GB of mobile hotspot (plus unlimited via mmWave 5G, if you can find it), and up to 720p streaming video on phones. Their differences only surface in the non-phone parts of each bundle; the latter swaps out a free bundle of Disney+, Hulu, and ESPN+ for 600 GB of cloud storage and 50% off connected-device plans for hotspots, tablets, and smartwatches. Both represent a better value than Start Unlimited, but you can see how Verizon feels its coverage allows it to charge a premium.

2. T-Mobile Magenta/Magenta Max Plan - Best for the Most Data

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Plan	Inclusions	Price
Magenta Plan	No Contract Unlimited talk & tex Unlimited 5G & 4G LTE datat(100GB) SD streaming 5GB mobile hotspot Netflix Basic: 1 Screen SD (for 2+ line accounts)	$70/mo
Magenta MAX	No Contract Unlimited talk & text Unlimited 5G & 4G LTE data Up to 4k UHD streaming 40GB mobile hotspot Netflix Basic: 1 Screen SD with 1 line Netflix Standard: 2 Screen HD (for 2+ line accounts)	$85/mo

T-Mobile’s primary unlimited data offering is more generous than those of its two rivals, and its rollout of 5G has made an already good network considerably better in a steadily expanding share of the country.The mid-band spectrum that T-Mobile picked up when it bought Sprint has allowed it to deploy impressively fast 5G with much better coverage than the faster but far more fragile millimeter-wave 5G that AT&T and Verizon offer.

Magenta costs $70 a month for unlimited on-phone data, with 100 GB of it prioritized. That’s double the allotment of comparable plans at AT&T and Verizon, which cost $5 and $10 more before the taxes and fees. T-Mobile folds those fees into the advertised rate. (Two lines of Magenta cost $60 each, and four run $35 each.) You don’t get as much data to use for mobile hotspot sharing, but the 5 GB included here is still a lot—and the unlimited 3G hotspot use that’s allowed above that gap will remain much more practical for basic connectivity than the 2G-level speeds AT&T and Verizon allow.

Best Pay As You Go Phone Plans in 2024

1.Tello Pay As You Go

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Source:tello.com

Tello is a no contract carrier that offers Pay As You Go plans. With Tello Pay As You Go plans, you select the dollar amount of credit you want on the SIM card, and then minutes, texts, and data are debited from that credit at a rate of 1¢ per minute, 1¢ per text, and 2¢ per MB of data. All incoming and outgoing texts and calls are debited.

The plan will last for as long as it has a balance on the SIM, or until you do not have any activity on your account for 6 months.

2. Black Wireless Pay As You Go

>>Visit site

Source:blackwireless.com

With Black Wireless Pay As You Go plans, you select the dollar amount of credit you want on the SIM card, and then minutes, texts, and data are debited from that credit at a rate of 5¢ per minute, 5¢ per text, and 10¢ per MB of data.

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