Question: Are Prepaid Phones Cheaper Than Contract?

Is a prepaid phone cheaper?

Prepaid Cellphones Are Cheaper.

With a prepaid plan on Virgin Mobile, which is owned by Sprint, the iPhone costs $650 for the handset, and then $30 a month, including unlimited data (the type of data plan that people are happier with, according to J.D.


Over two years, that would cost about $1,370.

What is cheaper pay as you go or contract?

Cheaper monthly cost

SIM-only plans allow you to keep your current phone. You can still get the benefit of a bundle of calls, texts and minutes for a single monthly rate. But the price is significantly cheaper than a phone contract, because it doesn’t include the cost of a new phone.

Which prepaid phone service is best?

Our Top Picks

  • Best Overall: Metro by T-Mobile. Buy on
  • Best Unlimited: Boost Mobile. Buy on
  • Best Everyday: Republic Wireless. Buy on
  • Best Basic: GoSmart Mobile.
  • Best Value: Virgin Mobile USA.
  • Best Individual: T-Mobile.
  • Best Freedom: AT&T Prepaid.
  • Best Coverage: Verizon Wireless.

What is the difference between prepaid phones and contract phones?

With prepaid plans, you pay for your phone up front. Many people are drawn in by the offers of free phones if you sign a 2 year contract even though they will pay more over that 2 year contract period. When you crunch the numbers, you may spend less in the long run by choosing a prepaid phone.

What is the cheapest prepaid phone plan?

Cheap cell phone plans: summary

Plan Best for Cost per month
T-Mobile PayGo (via Ultra Mobile) People who want a pay-as-you-go plan $3 per month, plus 10 cents per minute or message over the included 30
AT&T GoPhone Pay as You Go People who want a pay-as-you-go plan $2 per day of use, data is 1 cent per 5KB or $1 for 100MB

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Why is prepaid cheaper than postpaid?

One of the best reasons for prepaid is that you can get a lot more data for cheaper than postpaid. Prepaid is cheaper than postpaid the same way a coach ticket on an airplane is cheaper than first-class.

What’s the difference between pay as you go and pay monthly?

There are two types of SIM only deals – Pay monthly and Pay as you go. The main difference between them is that a Pay monthly SIM only deal includes an allowance for calls, texts and data which you’ll be billed for every 30 days. A Pay as you go SIM only deal requires you to top up with credit.

How long does pay as you go last?

Your SIM will expire after 90 days of inactivity, so if you’ve any top-up credit remaining, use it or you’ll lose it! Additionally, you will also need to top-up your account at least once every 365 days.

Is it cheaper to buy a phone outright or go on a plan?

“However, if you bought your phone outright, you’d incur a bigger upfront cost, but you’d have the freedom to shop around between telco providers for SIM-only plans that give you better value for money. Buying a smartphone outright can be cheaper in the long run, compared to locking yourself into a two-year contract.”

Which phone company has the cheapest unlimited plan?

You’ll also find that the more lines you add to your plan, the cheaper each line becomes.

  1. AT&T. AT&T offers two unlimited plans: AT&T Unlimited &More and AT&T Unlimited &More Premium.
  2. T-Mobile. T-Mobile’s unlimited plan comes with a two-screen Netflix subscription with two lines.
  3. Sprint.
  4. Verizon.

Which prepaid SIM card is best in USA?

Best Prepaid SIM Card for USA Comparison

SIM Card Description Prices
T-Mobile Prepaid SIM Card Data: Unlimited Expiry: 20/30 days Calls: Unlimited SMS: Unlimited Hotspot Allowed?: Yes (3G Speed) Canada/Mexico Use: 5GB Data Recharagable?: Yes Check Prices

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Which prepaid cell phone uses Verizon towers?

They’re called sub-brands or discount carriers and they all have one. AT&T has Cricket, Sprint has Boost Mobile, T-Mobile has GoSmartMobile and Verizon has Total Wireless. The sub-brands use the same towers and systems as the major brands, but at a lower price and with no contract.

Can I buy a prepaid phone and put my SIM card in it?

As long as the prepaid cell phone is of the same wireless provider as the SIM card, and as long as the phone has a SIM port, you will be able to use the SIM card on the phone. Open the clip on the back of the phone and remove the battery. Insert the SIM card into the port, and replace the battery and clip.

What is the advantage of a prepaid cell phone?

The main advantage of a prepaid cell phone is the control it offers. With a prepaid cell phone, you can talk as long and as often as you want until you run out of minutes. However, any unused minutes accumulated each month will automatically be rolled over into the next.

Do you have to pay monthly for a prepaid phone?

Prepaid service lets you pay in advance for monthly voice, text and data services on your mobile device. There’s no credit check, deposit or long-term contract required, like you’d have with a standard account (which gives you a bill for your usage at the end of each month).

What is the cheapest phone plan for one person?

Unlimited talk and text plan

Plan Best for Price*
T-Mobile Pay As You Go One person Starts at $3/mo.
Ting four-line plan The whole family Estimated $70/mo.
T-Mobile Essentials Inexpensive unlimited plan $60/mo. for 1 line
Mint 12-month, 2-GB plan Cheap prepaid plan $180/yr. ($15/mo.)

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Who has the best prepaid unlimited data plan?

Major carriers’ prepaid plans

Carrier Prepaid Data Plans Notes
AT&T 1GB/8GB/Unlimited Pricing reflects autopay discounts; Cheaper unlimited plan caps video streaming at 480p
T-Mobile 10GB/Unlimited Pricing and data caps recently changed
Verizon 500MB/3GB/8GB/Unlimited Take another $5 off every plan but 500MB with autopay discounts

How do prepaid plans work?

Prepaid phones provide the basic services of regular cell phones. However, there’s no long-term contract requirements or overage charges for minutes that exceed the monthly plan. You buy a cell phone with a set service (number of minutes usable over a certain number of months).