Prepaid vs. contracts: which should you choose? The best choice for you depends on your lifestyle needs and past usage. If you’re thinking of setting up a new plan, here’s what to consider!
What’s The Difference Between A Prepaid & Contract Cell Phone Plan?
Prepaid or “pay-as-you-go” plans involve paying for your services in advance. You purchase a finite quantity of calling minutes, texts, and data; if you use it all up, you will no longer be able to use those services until you pay more to refill your account.
A monthly contract plan (sometimes called a “postpaid” plan) is a cell phone plan where you pay for your services after you use them at a set billing time. One big difference is that monthly plans won’t cut you off if you exceed your call, text, or data limits. Instead, the provider will charge you for the overage, adding the cost to your next monthly bill.
Overage charges can be expensive, especially for data, so users have to exercise caution; however, there’s a lot of flexibility with a contract.
How Will You Use Your Phone – And How Often?
When determining which choice you should make, consider how you will be using the phone and how often. It’s good advice if you’re setting up a phone plan for an older (or younger) member of your family who wants a phone but doesn’t need a lot of data or minutes.
If your needs are simple – for instance, you only use the cell phone to make daily calls to family and loved ones, nothing more – a prepaid phone plan, which tends to be cheaper, might be the way to go. If you find your usage goes up after a period, you can switch to a more flexible contract.
What Features Do You Need?
The next factor to consider is the features on which you stay connected. If you’re not on social media, have no interest in games, and only surf the internet on your phone as necessity dictates, a prepaid cell phone plan makes sense. Some users only text and don’t need data to check social media or apps away from Wi-Fi. You’ll find prepaid plans that offer enough SMS, calling, and data for what you need.
If, however, you plan on using a smartphone a lot outside of Wi-Fi – being on the road, driving for a rideshare program, delivering packages, or just staying connected with friends and family – you might need a strong contract phone plan to meet your needs. You can pick up a contract that comes with unlimited data, talk, and text.
What’s Your Budget?
A lot of people choose their plans based on their budget. Prepaid phone plans are not a thing of the past and are especially great if you know what you use every month. They generally have lower pricing than contracts, but many users need to re-up their data, text, and call minutes frequently. You have the freedom to buy what you need, but you might find yourself running out quickly if you use your phone often.
If you have a family and need a lot of coverage, a contract family plan is your best bet. Canada’s service carriers make great deals for families with service bundling; this can make their price-per-phone more competitive than prepaid services.
Do you already have a phone and prefer not to be locked into a contract? Prepay and get it your way. Not sure what plan works for your needs? Talk to the sales associates at Wireless First Aid – we help you find the perfect for your lifestyle and help you with activation at our London, Ontario location.