Buying a new cell phone or upgrading your existing one usually binds you to an expensive 2 -year contract, but prepaid phones offer the same basic services of regular cell phones without the 2 year commitment.
The major difference being that there’s no long term contract requirements or overage charges for minutes that exceed the monthly plan. Before you decide to go with prepaid phones, here are some of the facts you need to know.
Prepaid Phone Plans
There are two popular kinds of prepaid plans. They are the pay-as-you-go plan and the prepaid monthly plan. The pay-as-you-go cell phones are simple – you buy the phone, purchase a set amount of minutes and you’re set! Once you finish up your minutes, you can simply buy more minutes.
The prepaid monthly plan is pretty self-explanatory as well, but it works more like a traditional cell phone plan. You pay a monthly rate to your wireless carrier, which typically costs about $30 – for a set number of minutes, along with text and data.
If you end up running out of minutes, or data, you can always pay to add more, just like you would with the prepaid plan.
For heavy users, we suggest looking into prepaid plans which offer unlimited talk, text and data, as these will save you some money compared to always having to pay for extra minutes or extra data after you’ve already run out.
These plans typically cost between $40-50 a month, depending on your cell phone provider.
Cons of Prepaid Phones
Those prices sound pretty good, but they do come with a few downsides. First, you’ll have to pay the full price for your cell phone (the actual phone itself) upfront, unlike standard cell phone plans which sometimes waive or subsidize the cost in exchange for a two year contract.
Your selection of phones will be more limited as well, often limiting your access to older models, or at least non-premium phones. Also, depending on your wireless carrier, the coverage and data plans aren’t usually as strong as those offered by traditional contracts (non-prepaid phone contracts).
Benefits of Prepaid Phones
If you’re someone who doesn’t spend too much time on your phone, going prepaid can potentially save you hundreds of dollars over a standard plan. To determine what you’ll be able to save, you’ll need to assess your usage and current costs, and then compare them to the prepaid options on the market.
Keep in mind that while cell phones are a necessity these days, the pricey contracts you can do without.
Prepaid phones offer the freedom of no contracts, no credit checks, no carrier fees or hidden taxes. You will be free to talk whenever you want, as long as you want (if you get an unlimited plan), and you won’t have to pay a monthly bill as long as you don’t run out of minutes each month.
Talking more, one month and less the next month makes no difference to prepaid plans, as long as those plans are exclusively based around purchasing minutes. Plus, if you want to change to a different type of plan, a prepaid phone gives you the freedom to switch whenever you want, without facing early contract termination fees.
There are a lot of benefits to prepaid plans, but perhaps the biggest is the flexibility and customization possible when you aren’t locked into a long-term contract.
Car Capital Financial
If you are trying to cut your monthly expenses, then switching from the traditional expensive long-term cell phone contract to a much cheaper prepaid plan might be a great idea.
But if you need to raise a lot of money quickly, then a no credit check car title loan might be your best bet toward reaching your financial goals.
A title loan works by awarding you a cash sum based on the value of your car, and in exchange the title loan company temporarily takes ownership of your title. You are free to drive your car as you pay back your loan, and the title will be returned into your name as soon as you have paid off your loan in full. Title loans are issued based on the borrower’s ability to repay the loan.
Getting the emergency money you need without having to give up driving your car, pawning off family heirlooms or sacrificing personal relationships may be your best bet in this time of need. For more information about our vehicle title loans, please contact us now at 1-888-500-9887!