Prepaid VS Contract Cell Phone Plans and Pick the Right One


The Internet starts to replace the old way when sending messages and calling. You do not need a fixed line at home because a smartphone with a reliable plan is more enough. In this case, you can choose between a prepaid and contract plan from the provider.

Some people still do not understand both that will end up paying more. Comparing prepaid vs. contract cell phone plans will be useful as reference to ensure you pick the right one. In fact, using both is not bad idea and you get to know how they work. Check the following section for more explanation.


Prepaid Phones vs Contract

Prepaid vs. contract cell phone plans will start from familiarity because you must understand one by one before choosing the best.


Prepaid Phone

When using a prepaid plan, you pay upfront for minutes, text, and data. You use them until the next month and buy again for the following period. This kind of option is useful when you already know how many minutes and dates that must be ready to support your needs.

However, you may end up spending all data and there is nothing left before the next period because of an unexpected situation. Usually, providers will offer top up or some additional prepaid to fill your need.

Contract Plan

You make a contract with providers to get a cell phone. Usually, they will offer bundling and terms of at least 2-year.

As a customer, you must use their service and pay fee if a contract is canceled before due time. It sounds less convincing but you get benefits such as more support, monthly bill for hardware, and vast coverage.

For your information, the contract includes a cell phone and you do not pay all costs but a monthly basis which is more affordable. After it is over, you get a phone and are free to extend or choose other services.


Prepaid Phones vs Contract

Communication Needs

When choosing between prepaid and contract plans, communication is necessary to be top consideration. You use a cell phone for many things such as texting, sending email, browsing the internet, video streaming, and gaming.

If you only utilize regular communication without excess needs, prepaid is enough. Of course, a contract plan provides more data and features when you must do many things more than basis.



Prepaid vs. contract cell phone plans also include data for the internet. The question is what activity you will do. Most people think that prepaid is not a good choice for taking too much gaming and video streaming.

You decide to pick a contract cell phone to get more data. For your information, some providers also give special top up data only for prepaid users.


Budget and Monthly Cost

The most common question includes budget, price, and money. Both have their own cost depending on how much service you get.

A contract plan is cheaper because you get a cell phone and pay monthly. On the contrary, a prepaid one must use your own device and must be bought new when you do not have one.

If you like, try many plans and providers with various prices; a fixed contract is not your choice.


Coverage and International Limitation

One issue when using a prepaid is limitation. It is only available for local and national coverage. You hardly find a service that can be used while you are not in your own country. When making a contract one, you already know whether international coverage is available or not.

With a 2-year period, the provider also includes this service to support the need of communication when users are going abroad.


Flexibility and Practical Use

Prepaid vs. contract cell phone plans have their pros and cons regarding flexibility. For example, prepaid is flexible enough to adjust with unexpected situations. You may need more data but only at certain months. On the contrary, a contract plan is more flexible in term scalability for long term.

You already know what to expect and expand your activities based on the service availability. You already know about prepaid vs. contract cell phone plans. Both have pros and cons that can fulfil your needs.

It is not a simple choice if you do not do much shopping to find an interesting and relevant one. In general, experiencing both plans is still the better way to grasp how they work. Of course, you must check a budget and make sure spending only into the right option.