Contract cell phones are expensive and difficult for many people to afford, and many people have made the switch to prepaid phones instead. Learn the key ways that prepaid phones help people cut down on expenses.
1- No Contracts
Arguably, the biggest way that prepaid phones help people cut back on monthly expenses is their lack of contracts. People who use them are not locked into years-long contracts that cost hundreds of dollars each month.
Prepaid phone users have the leeway to change their phone plans from month to month. When money is tight, they can forgo paying their phone bill entirely, relying instead on Wi-Fi calling and texting, until they have money to pay for more minutes.
2- No Credit Checks
Further, contract cell phone providers use credit checks to determine how much people pay for their cell phones. People with lower credit scores often have to pay far more for phones and sometimes cell phone services than people with higher scores.
People who are already experiencing financial challenges because of lower incomes or lower credit scores then incur additional monetary burdens when they sign up with a contract cell phone provider. Prepaid phones do not require any credit information and instead offer flat-rate pricing for plans and devices.
3- Pay for What You Use
When you buy a prepaid phone, you also only pay for what you use. You control your own costs by paying for the texts, minutes, and data that you will use during the month.
If you need more, you always have the option of refilling your plan before the end of the month. Some prepaid phone providers also offer rollover minutes, data, and texts if you do not use what you paid for within 30 days.
4- No Overage Charges
Contract cell phone providers make a proverbial killing on overage charges. If users go over their allotted talk time minutes, texts, or data allotments, they must pay for any extra usage, which can significantly raise their monthly bills. Users who opt for prepaid phones avoid overage charges and instead pay the flat-rate price for their plans.
5- International Savings
Many prepaid phone providers also offer lower international rates than contract phone providers. If you call internationally regularly, consider using a prepaid phone that costs less than what you would pay for with a contract phone.
6- No Hidden Fees
Many people do not read the fine print for their cell phone contracts. When their bill arrives, they have questions about why they are charged so much or why the cell phone company added certain fees to it. With prepaid phones, you do not have hidden fees. The price the company charges for its price or plan is what you pay, minus any applicable state or federal taxes.
7- Upgrade Flexibility
Contract cell phone companies restrict when you can upgrade your phone. You have to pay most or all of your device off before you can upgrade to a newer model. With prepaid phones, you can upgrade any time you want without extra fees or penalties.
These details explain how people can better control their monthly expenses with prepaid phones. Prepaid phones do not have hidden fees, charge flat-rate prices, and give more flexibility and control to people who use them.