A mobile phone subscription allows you to make calls, send text messages and use data at will. When most people get a new phone, it usually comes with a postpaid plan. The reason is that many mobile service providers offer high-end smartphones at low prices as long as you buy from them and subscribe to their service. That means you enter a closed contract where you’ll have to buy it out if you want to end it.
Postpaid plans allow you to pay your phone bills at the end of the month, but they are typically expensive. Still, providers offer special plans to ensure their subscribers remain with them. Moreover, you pay nothing upfront, which can be convenient. So why should you switch to using a prepaid card or subscription? This plan has several benefits better than postpaid plans and we’ll explain them in this article.
How Does a Prepaid Card Work?
A prepaid card, also called a cash card, is a call card that allows you to make calls, send text messages and browse when you transfer a specific amount to it. The service provider or carrier provides a service matching the amount in the card and you can use it until the money runs out. You can’t make calls, send messages or browse the internet when this happens. You must transfer more money or top up to continue using the service.
The primary disadvantage of using this card is that you can run out at any time, even in the middle of a call, which can be frustrating and costly. Suppose you’re negotiating a huge deal and your time runs out. It may take a few minutes to top the card up, precious minutes that may take the deal away.
However, the benefits are pocket-friendly, and you may be surprised that it offers more than expected. For example, some carriers offer family packages that allow you to call family members registered within that package even when you run out of money on the card or plan. That can be convenient and less expensive than other offers.
Is a Prepaid Card for Everyone?
Anyone can use a prepaid card or plan if they decide how they want to manage their finances. But while it’s cost-effective, a prepaid plan may not work for everyone, especially if they are used to having unlimited access to mobile service.
For the busy professional or someone who is constantly on the move, having to top up every few days or weeks may be too much to ask. But if you mostly make calls or send messages without needing data, this plan may be ideal. The same applies if you have a phone strictly for calls and SMS.
Most countries require that you have a social security number before getting a postpaid subscription. For example, Norway demands your SSN to access a plan but allows you to buy a cash card without the number. Visit mobilabonnement.com – kontantkort to learn more about mobile subscription and prepaid card benefits. You can easily order online or through an app to top up if you can’t pay through any other channel.
The plan also works for a home where you want to leave a phone for your kids and don’t want them to have access to the internet. For people who have bad credit scores or payment notices on their credit history, using this option works because no one does a credit check before offering the subscription.
Benefits of Using a Prepaid Plan
The following are a few benefits of switching this subscription type:
1. No One Checks Your Credit
We explained that most postpaid plans come with new phones that users buy from mobile service providers at a low or subsidized price. But before that can happen, the company must check whether you have the means and credit worthiness to cover the payments over the agreed period.
Some stretch the payments over one year or six months to make it easy on every income level. Nevertheless, they conduct a credit check to determine your score and decide what offers to present to you. After all, taking the phone and corresponding subscription is like taking a loan; you owe the providers.
If you have a low or bad credit score, you’ll still get offers but not every subscription plan and phone type will be available to you. In some cases, you may even have to pay a security deposit. The contract terms may also be unfavorable compared to those offered to someone with a much better credit score.
However, you don’t have to worry about a credit check with a prepaid card or plan and the reason is simple. You pay for the service you use upfront and get what you pay for. Applying for a prepaid subscription is typically fast and you don’t have to provide much personal information to the service provider; there’s usually no need for it. That means you don’t lose much if there’s an event of a security breach and the company loses customers’ information.
2. You Save Good Money
Using a postpaid plan can be expensive, especially when you’re trying to save money. While it’s convenient – you don’t have to worry about running out of credits on your call card – the cost can eat deep into your monthly bills budget if you use a lot of data or allow others to connect to your Wi-Fi without limits. With a prepaid plan, the case is different.
You can get plans that start as low as $25 with unlimited text message offers. Some providers offer bundle plans that run for several months at even lower costs. For example, T-Mobile’s Connect has plans that start as low as $10 per month, which is super cheap and convenient. Others like Mint Mobile offer monthly plans at $25; Mint had a special offer of a three-month plan at $15 per month.
Compared to most postpaid plans, the savings are massive. Although some carriers provide discounts to subscribers who get a postpaid plan for several lines at the same time to make it cheaper, the cost is still higher than that of a prepaid plan. It helps to compare the prices on different plans to see what works best before deciding unless you’re set on using a prepaid card. That’s one way to make the most of whichever you choose.
3. You Are in Control
Another benefit of using a prepaid card is that you’re in control of how much you use, which carrier to subscribe to and general expenses. No contract keeps you trapped using only one plan or spending a specific amount monthly. You can even decide to go without data if you have access to free and constant Wi-Fi, allowing you to save even more money.
Also, there are no surprises with your bills; many phone users are surprised when they get their bills at the end of the month since they don’t remember spending so much on data or calls. Instead, you already know how much to spend per time because you pay for the card upfront. It means you can efficiently manage your budget for bills because you can decide what to pay for and what to do without.
Besides, there are no charges that affect how much you pay because you’re not in any contract with a carrier. You can even decide not to pay for the calls or texts if you have another channel of communication or are an infrequent user.
4. You Buy a Phone Upfront
People often overlook the weight of taking a phone on credit and financing it over a specific period on their finances. The setup is that a carrier offers you the latest phone at a good price but configures it so that you can only use their mobile service. You’ll still pay the full price of the phone and cover the subscription costs but not immediately; the payment usually stretches over months. Some stretch as long as 36 months or three years to lessen the burden on the buyer.
However, before that time expires and you’re done paying for that phone, a new one is released, and the carrier offers it to you if you trade in the old one. The problem is there’s an addition to what you previously owed since the new one is typically more expensive than the old one, increasing the total amount to repay.
Most users don’t think much about this, but it means you’re constantly in debt. The story is different and easier with a prepaid plan; it encourages you to buy an unlocked phone upfront, which means you pay the full price at the point of purchase, owing nothing. Some people may see it as inconvenient and expensive but it’s actually financial wisdom and helps you save money.
When paying in full, you won’t be tempted to go for a smartphone you can’t afford. In other words, you stick with the option that fits into your budget, even if it’s not the latest model. But if the contract allows you to pay, say, $30 per month, you wouldn’t think much about it. Prepaid cards and plans are not as popular as their postpaid counterparts, but they keep you financially responsible.
Conclusion
Using a prepaid card may not be popular but it’s an overlooked way to get mobile service while saving money. While it may not be convenient for every user, most people will benefit from its offers, especially those trying to cut costs without sacrificing their quality of life.
Several providers offer amazing low plans and they don’t even need to check your credit history. Moreover, you are not stuck in a contract while paying off the cost of the phone in use. Consider switching to using a cash card if you mostly make calls or send messages instead of needing constant internet access.