Should I Sign A Contract Or Buy Prepaid Minutes?
Most people own or would like to own a new cellular phone but wonder whether they should choose to pay for prepaid minutes or to sign a contract with a service provider. Service providers are competing more fiercely than ever before, and this competition has brought about rapid changes to the features providers offer and the rates they charge. However, low credit scores keep many from getting the most up-to-date contracted plans available, leaving them no other option but to get a prepaid plan. But is it accurate to claim that this is the worse of the two options?
Contracted Cellular Service
Signing up for a contracted plan is beneficial in a few ways. Contracted customers usually get a new cell phone at a very low price, if not for free. They also have no interruptions to their monthly service, and have customer support available to them 24/7. Finally, the rates available to contracted customers are typically lower than those available to prepaid customers.
There are also many negative aspects involved with contracted service, including the following:
Contracted customers are typically obligated to stay with their service providers for two years.
Contracts do not allow customers to switch phones without getting charged for the phone's full retail price.
Even if the company changes the features and rates for your plan, it usually costs extra or requires a two-year contract extension to take advantage of these changes.
Finally, the termination fees can be staggering should you choose to end your service before the end of your contract.
Prepaid Cellular Service
The main downfall of the prepaid cellular route is the cost per minute - in general, all costs and fees considered, you pay more per minute with prepaid cell phones than you do with contracted ones. Another problem associated with using prepaid services is that, when purchasing your unlocked cell phone from a retail outlet, you often get a used or dated model. Despite these problems, prepaid phones do have their advantages, and the fact that prepaid plans using refurbished cell phones are not for everyone doesn't mean they aren't for anyone. They are particularly valuable to those whose cell phones are a secondary form of communication. This is because a person can buy small numbers of minutes and feasibly make them last the full 90 days for which they are good. In this way, many people are saving money by paying for what they need when they need it rather than trying to predict their usage for the next two years. Additionally, users can exchange their phone for a different one at any time. The greatest part about using prepaid phones is that there is no contract, no obligations. You could go a whole month without using your phone or wasting a single cent in not doing so - renewing service the next month is hassle free.
Testimonial
I've tried a variety of different cell phone services, prepaid and contracted, and the prepaid market is simply growing faster than the contracted service market is. This fact is undeniable - there are now prepaid plans that give customers as many minutes as they can use in a month for as little as $60! To anyone interested in prepaid cell phone service I recommend finding a used cell phone and perusing a variety of service offers before choosing one.
Questions and Answers
Article Tags:
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