Advantages and disadvantages of prepaid cell phones

We constantly see commercials on TV promoting cell phones and cell phone carriers with what they call great introductory deals if you sign up with them on their network.

Is it worth signing a one-year contract with a cell phone operator?

Well, that’s a question you need to answer for yourself, although the price may seem attractive, you need to consider if you’ll be using the phone every day. Ask yourself the following:

Do I need my cell phone for work?

Will I mainly call friends and family?

Will I be making out of state calls or international calls?

If the answer to the number of questions above is no, well prepaid cell phones could be your best option. Prepaid cell phones are ideal for people who do not intend to sign contracts and do not intend to make excessive use of the cell phone. There are many pros and cons to using this type of cell phone:

Advantages of using a prepaid cell phone:

No credit check required

No deposit required

No monthly rental fee

No termination fee if you decide not to use your phone again

No service fee

A large selection of phones available, including camera phones

Always in control of call costs

Disadvantages of using a prepaid cell phone:

Calls and SMS texts will be more expensive per minute than using a bill phone

You could run out of credit at a crucial time when you need to make a call

Some carriers will put a time limit on your credit (you must use it within a certain time or else it will be classed as invalid)

Children with prepaid cell phones:

Always buy a cell phone with low emissions for health and safety reasons. It is not recommended that children under the age of 7 use any type of cell phone.

If you like to keep up with your children and you feel that a cell phone is a safe idea, don’t make the mistake that many parents make by giving them a cell phone that has a rental line. If you do this, be very prepared for a large monthly bill each month from the postman. It’s like giving your child a big bag of candy and asking them not to eat it unless they really have to. Prepaid cell phones are great for kids, if your credit runs low, so be it, but you can always call or text them and then it’s up to you what extra credit to allow.

It’s very hard for young kids to budget smart and kids will be kids, so you have to be careful when it comes to financing them a cell phone.

What are the higher costs involved with prepaid cell phones?

Be careful, your credit can be consumed very quickly. Camera cell phones are a lot of fun and sometimes useful, but if you’re using a prepaid camera cell phone and want to text photos, the cost can be very high per text. Also watch out for roaming charges as these can be very expensive too. Always look for promotions and free gifts with no hidden fees.

Is it easy to get credit?

Buying credit couldn’t be easier. Most stores will sell credit for the different cell phone carriers and some stores have vending machines where you can simply follow the instructions and top up your credit. You can also call your cell phone provider (usually a toll-free number) and buy with your credit card. Credit issued as a long number. Just type this in the correct section of your cell and that’s it.

Prepaid cell phones in brief:

A great idea for those of us who need to keep up with our phone expenses.

Very helpful for emergencies with no rental fee.

Ideal for children if you want them to carry a cell phone

A good backup if you experience a problem with your home phone

Again, always look at the different cell phone carriers and their prepaid cell phone packages, they are not all the same and some offer great starter packages.