Why Buy a Prepaid Cell Phone with No Contracts? Top 4 Reasons

When you buy a new prepaid cell phone, there are no contracts to stay on the cell phone plan for any period of time. All you need to do is prepay for a certain period of usage for a small outlay, like $20 for 90 days of use. There is no obligation for you to continue on the plan after your first purchase of service. More and more people are realizing the benefits of buying a prepaid cell and switching over.


Traditionally, most cell phones sold have been contract-based requiring a two year commitment. Cell phone companies reason that since they are giving you a high priced cell phone upfront, usually for free or at a steep discount, they would need to be compensated by having you continue as a paying customer for an extended period of time.



For the individual consumer, life is sometimes unpredictable and people who have signed contracts sometimes find that they have reason to cancel the plan before their contract's expiration. More often than not, they end up being charged early termination fees by the cell phone companies of between $150 to $250 per phone line. If you are considering purchasing a cell phone now, it is a good time to reflect on the alternative of getting a no-contract prepaid cell phone. This may save you the bother of having to terminate a contract and fork extra money out of your pocket later.


Consider these top reasons for buying a prepaid cell phone with no contracts:
You can keep things flexible. In today's fast moving economy, it's hard to say how things will be a year from today. If you or a family member is relocating, you can walk away from that phone line at any time with no cancellation fees. You do not even need to call anyone to cancel service.

You are not tied to a fixed monthly schedule of minutes. No more having to pay for a minimum number of minutes you have no use for. No more experiencing any high overage charges for each minute you go over your plan limit. With a prepaid plan, you choose to buy more minutes for the months when you usage level is expected to be higher and less when your usage level is lower. in today's uncertain economy, this is important. If you need to reduce your budget, you can always choose to reduce your use of the phone.

If coverage decreases, you are free to move on. If the phone reception drops in your area or when you move to a new neighborhood, you are can easily switch to another provider. You do not have to suffer through a loss of coverage just because you have signed a contract.

Great for short term visits. If you are going abroad or traveling to another state and want the convenience of having a cell phone and a local number to use, getting a prepaid cell phone is perfect. Alternatively, if you have friends and relatives visiting from another country, they can also enjoy the short-term use of a cell phone this way.