Advantages Of Prepaid Plans

Why Prepaid Plans Are Better

The overall market situation cellular phones marketplace has changed by leaps and bounds since it was introduced in the 80′s. While the total cellular phone market is growing rapidly,the early interest in traditional postpaid plans are starting to shrink in their market share. Postpaid plans with contacts are now being replaced by cheaper prepaid cell phone plans that comes with cellular phones.

Prepaid Plans vs. PostPaid Plans – A Look At The Difference

As we are aware the two main types of cellular plans are the postpaid plans and the prepaid plans. With postpaid plans,we sign up with a carrier and pay for minutes used at the end of each month. Normally, most cellular companies will require a credit check as well as a contract,usually for a 12 months period. At the end of the billing month, you will be sent a bill to indicate the minutes that you have incurred and you will be billed accordingly. As for prepaid plans,you will buy the minutes upfront and use them as you go, needing top them up only if you so required.

As a matter of statistics, prepaid phone plans have been used by two groups of people, young adults as well as people with bad credit. Because traditional postpaid plans normally need a credit check, many people with bad credit status have been unable to buy a traditional postpaid cellular phone plan. As such, this group of people makes up the bulk of prepaid plan users. The main disadvantage of the prepaid plans is that the call minute charges are more expensive than postpaid plans but things have changed recently as the prepaid plan call charges and the postpaid call charges are now almost on par with each other.

Prepaid Plans – More Advantages

Most prepaid plans now comes bundled with cellular phones. A wide selection of phones ranging from simple phones to sophisticated smartphones such as Androids or iphones are now available with prepaid plans. Some prepaid plans also comes with customer loyalty programs such as additional call minutes will be credited to users if they purchase a certain amount of prepaid minutes in a month. All these advantages has users now turning more to prepaid plans than postpaid plans.