Is there any difference between pre-paid cell phones and contract cell phone service?

Question

My husband and I have always had contract service with a local provider, but we don't use all of the services (yet we pay for them). We are considering pre-paid for us and our kids. Are they reliable phones and how do they compare in cost to contract phone service?

Answer 1

The difference between pre-paid and contract is that with pre-paid you don't sign up for anything and there is no account or bill that you have to pay every month. Contract is that you pay for a certain amount of minutes and services that you may or may not use every month and that bill comes every month.

As far as costs go, there isn't a big difference from what I've seen. To make sure you get the best rate, you really need to shop around and check out what people are selling...it all boils down to how many cents per minute you're going to be paying.

My recommendation is for you and your husband to get a contract so that if you ever need it, you won't have to worry about running out of minutes at an inopportune time. For the kids, I would recommend pre-paid. This is because, its been my expereince (I'm a teacher and I hear lots of stories) that most kids use their phones a lot either calling or text-messaging. This can run up an extremely high cell phone bill that you'll be stuck with. The worst story I ever heard was one of my students running up an $800 bill in one month from overage charges.

Also, before you do anything, check with your current cell phone provider and find out if you're under contract and if so what the early termination fee is (usually $150). This might make you're decision easier for now. As for pre-paid companies, I have heard that Boost and Virgin are pretty good companies.

Answer 2

Depending on where you live. Check with the retailers. Often a pre-paid phone is more expensive, and you can only talk a certain length of time before you need to buy more minutes. Check with the phone service provider as to saving on a contract. Here in Canada, with no contract a phone may cost $499.00, but with a 3 year contract, it may be only $99.00.

Answer 3

pre-paid is expensive . If you use the phone a lot the contract phone is better. But if you don't use the phone a lot pre paid might be the way to go. Just have to remember to not let the service expire or you will have to get a new phone number

Answer 4

I'm opposite of your family.......I do have Tracfone Minutes for my Motorola cell phone..... Pay as I go..... I bought a open-flap, phone, for $50.00, then the 120 minutes, just so I can call & check on my kids, when I start school next week...... My service expiration date, is 4 months away, in which I have to either purchase more minutes, or I will lose my same phone number, otherwise the minutes will run concurrent...... For me this is a Good-Deal..... Because, I'm not on the phone alot... This will be, strictly for all of us, to touch base, with one another, while I'm in school, or on my way there, and so on.....Whereas, my teenage son, uses his for talking alot to his friends, inwhich, he goes through his minutes, faster, than all of us........ But, we got him, a $20.00 phone.....with the 120 minutes, ending up being used before his deadline date, we have to purchase more minutes for him, or else he goes, about one month without minutes....Should he not take our advise, and use the "Ground" phone at home, when he is at home...... And these phones, have call waiting, caller ID.....Text messaging, and many other features.....mine does anyway, I'm not real sure about my sons, having as many features as mine does....... Well good luck, to you & your family...I hope I was of some assistance, for you, aleast a little bit.

Answer 5

i use a pre peid service and i like it because there are no contracts (duh) and the phones are quality but cheaper so everytime i get bored with mine, i just buy a new one and it doesnt affect my minutes or anything (you can just get them transfered) pre paid is especially good for me because i dont use many minutes so its cheaper.

Answer 6

contract phones are cheaper...especially how much women gossip !!!