Forbes reported back in 2013 that the number of people using wireless refill plans is rising. Why are cell phone users leaving the big carriers and their long-term contracts in favor of smaller carriers and prepaid plans? Here are the top five reasons why a wireless refill plan is more convenient than its contract counterpart.
The most significant feature of a wireless refill plan is that there’s no long-term contract with a set amount of minutes, texting and data usage. You don’t have to worry about going over your allotted amount of minutes and being penalized; you can only use what you pay for. Depending on how many minutes you buy, you can use your phone as much as you want or as little as you want. Any unused minutes from the previous month roll over into the next month, and since there’s no monthly bill, you don’t have to stress out over paying it at the end of the month.
2. Your Credit History Doesn’t Matter
Signing up for a long-term contract requires a credit history check. Because you pay for wireless refills up front, a credit check isn’t necessary. This type of plan is great for teenagers who have no credit history and adults who have a bad credit score.
Not all cell phone users are created equal. Some people might use their phone twice a week, and some may only bring it out in case of emergencies. For these types of users, signing up for a long-term plan makes no sense. The flexibility of a pay-as-you-go wireless refill plan is perfect for the infrequent user. .
4. They’re Less Expensive
If you commit to a big carrier for two or more years, they’ll often subsidize the cost of a new phone. Instead of paying $500 for a smart phone, the carrier will sell you one for $100. It sounds like a good deal, but you’ll end of paying back the cost of that $500 phone in the form of higher fees and options you don’t use. If you’re okay with not having the most expensive phone on the market, you’ll save money going the wireless refill route.
5. You Can Switch Carriers
When you don’t have a long-term contract with a cell phone company, you can use the quality of service as a metric to determine whether to stick with a particular carrier. If you don’t like the pre-paid carrier you’re currently with, you can easily switch to another one without any penalties.
Do you have a prepaid wireless refill plan or are you more of a long-term contract person? Which do you prefer? Feel free to post your comments and opinions below.