People tend to confuse prepaid phones with contract phones but they are poles apart. Prepaid phones, also known as no-contract phones or unlocked phones, are cell phones that do not require you to sign a contract with carriers or network providers. You can get a prepaid phone when you want. Opting for prepaid phones is comparatively easier than getting a phone with a contract and they are available all over the country. You can get them at retailers, stores, as well as at the stores of popular network carriers.

Prepaid phones work like a regular phone. The only difference is the way in which carriers charge you based on the usage.

• Prepaid phones: You need to top-up your phone before you use it for calling, texting, and using the Internet. As the limit is reached, you need to top-up your phone again to continue usage.
• Contract phones: You are required to sign an agreement, and there is a limit to how much you can talk, text, and use the Internet. The contract is valid for a certain period after which you must renew it.

Initially, prepaid phones were simple phones that provided basic functionalities such as calling and messaging.

Advantages of prepaid phones

Prepaid phones are a boon to many because of the following points:

• If you do not like to be tied to contracts then this is the best option of using a phone without any strings attached.
• Prepaid phones are comparatively cheaper. If you want to buy a new phone with amazing features that has recently hit the market, you can always check and get that as a prepaid phone.
• The entire process of getting a prepaid phone is easy and convenient. With contracts, there are many things you need to keep in mind.
• You have the freedom to use prepaid phones and renew the plan when you wish without any form of contract.
• When you use a contract phone, you may be required to pay quite a lot of money if you leave mid-way or if you do not wish to continue with the carrier. This is not the case with prepaid phones.
• There is no monthly bill associated with prepaid phones.
• Switching from one plan to another is much easier when it comes to prepaid phones. This is, however, quite time-consuming and difficult when it comes to contract phones.
• Prepaid phones can also be used for checking how much your monthly use is. It helps you determine how many calls and texts you make each month.

Disadvantages of prepaid phones

There are some drawbacks associated with using prepaid phones as well:

• There are some network carriers that provide you a limit within which you need to use up the minutes and texts. Sometimes these are not carried on to the next month which means that the unused data and text is wasted.
• You might have to pay unexpected fees. You need to pay for each service separately in many cases. For example, when you are in an area outside your state or country, the charges will be very high.
• Prepaid phones are not all high-end phones. Although they may be great, most of the high-end phones available in the market are contract phones.
• Transferring phone numbers can be a problem with prepaid phones. When you wish to switch carriers, you may not be able to use the same number.

Instead of buying prepaid phones directly, you should do some preliminary research. Different prepaid phones and plans are offered by various carriers in the country to suit the needs of different people. Having knowledge about what you are getting yourself into is a great first step. Nearly all carriers in the country give you the option of prepaid phones that you can choose from. You can visit the official website of each carrier to find out more about the phones and plans that they offer.