What Are The Advantages Of Using A Prepaid Cell Phone?

A prepaid cell phone or the "pay-as-you-go" plan offers the same convenience as other cell phone plans but without monthly bills, long term contract, commitment to a monthly service plan with overage fees or a penalty for early termination. To cancel the service, simply stop refilling the account.

Here are four examples of situations where a prepaid cell phone may be the better choice:

• If you don't use up all your monthly minutes on a regular cell phone, you can reduce your cost by switching to a prepaid cell phone.

• If you want to give a cell phone to your children without having to worry about an expensive bill at the end of the month, give them a prepaid cell phone. NOTE: If you want to teach them financial responsibility, have them be responsible for refilling the account!
  

• If you visit the United States, either as a tourist or on business, and don't want to pay those high international roaming fees, buy a prepaid cell phone when you arrive.

• If your credit rating is not the best, look into using a prepaid cell phone. There is no credit check when you buy the phone. You can pay with cash.
  

What Should I Look For When I Buy A Prepaid Cell Phone?

Here are the main things you should look at when comparing prepaid cell phones:

• Refill Requirement (days between refills)
• Cost Per Minute
• Fixed Cost
  

Who Are The Main Providers Of Prepaid Cell Phones?

The main providers of prepaid cell phones are:

• Virgin Mobile
• 7-Eleven Speak Out Wireless
• Cingular Gophone
• T-Mobile ToGo
• Tracfone
• Verizon Wireless
  
• Net10 Wireless
• Boost Mobile
  

7-Eleven Speak Out Wireless

7-Eleven Speak Out Wireless uses Cingular's GSM network and is opearated by ZtarMobile, a "Mobile Virtual Network Operator" or MVNO.

The cost is 20 cents per minute. You can choose between $25, $50, $75 or $100 for your refills. They also charge $1.25 per month (about 4 cents per day) as a fixed fee. The phone and refill cards can be purchased at 7-Eleven Stores.

You have a full year before you must add minutes to your account, no matter what refill amount you choose. This is the longest time for any prepaid cell phone service available.

Unused minutes are carried over when you refill your account. You must use the phone at least once every 120 days to keep the account.

PRO: You have 365 days before you need to add minutes.

CON: Can only be purchased at 7-Eleven stores.

WEBSITE: http://www.7-eleven.com

Virgin Mobile

Virgin Mobile's prepaid cell phone plan is called "By The Minute". The cost is 18 cents per minute and to keep the service you have to refill your account with at least $20 every 90 days.

Virgin Mobile is an MVNO "Mobile Vertual Network Operator" using Sprint's CDMA network.

Phones can be purchased at stores such as Target, Walmart, Radio Shack and Best Buy.

PRO: Available in many stores.

CON: Refilled required every 90 days.

WEBSITE: http://www.virginmobileusa.com/rates/minute.do

Cingular GoPhone

Cingular GoPhone's prepaid cell phone plan is called "Pay As You Go".

Their "Simple Plan" option costs 25 cents per minute, and their "Unlimited Mobile To Mobile" option costs 10 cents per minute, but there is a $1 charge per day for this plan on those days you use the phone.

Your minutes expire after 30 or 90 days depending on the amount you add ($15 to $75) to your account.

If you add $100 to your account, the minutes expire after 365 days.

PRO: 365 day minute expiration is available.

CON: Refill required every 30 to 90 days unless you refill with $100. $1 charge per day if you want the 10 cents per minute option.

WEBSITE: http://onlinestorez.cingular.com/cell-phone-service/gophone/pay-as-you-go.jsp

T-Mobile ToGo

T-Mobile's prepaid cell phone plan is called "T-Mobile ToGo". The cost per minute varies between 13 cents (if you buy 400 minutes for $50) and 33 cents (if you buy 30 minutes for $10). The 30 minute card expires after 30 days, the others after 90 days.

They have a 365 day option, but you have to buy 1000 minutes for $100. The cost per minute for this option is 10 cents.

PRO: Low cost per minute if you spend $100 and buy 1000 minutes.

CON: Variable cost per minute depending on refill amount.

WEBSITE: http://www.t-mobile.com/shop/Plans/Default.aspx?plancategory=4

Tracfone

Tracfone is an MVNO "Mobile Virtual Network Operator" using several networks and can be purchased at most retailers. The cost per minute varies between 20 cents (if you buy 250 minutes for $50 or 400 minutes for $80) and 33 cents (if you buy 60 minutes for $20). They all expire after 60 days.

If you refill your account within 60 days, your unused minutes carry over for a maximum of 120 days. So, if you buy the high minute card to get the lower cost per minute, make sure you use them within the 120 days carry over period.

They have two 365 day options, but the cost is either 32 cents or 40 cents per minute depending on which card you buy.

PRO: Phones are available almost everywhere.

CON: Variable cost per minute depending on refill amount.

WEBSITE: http://www.tracfone.com

Net10 Wireless

Net10 Wireless is a prepaid cell phone service from Tracfone for frequent users. The cost is 10 cents per minute. The 300 minute refill card expires in 60 days, 600 minutes in 90 days, 1000 minutes in 180 days and 1500 minutes in 365 days.

PRO: Low cost per minute.

CON: Only good for high minute users.

WEBSITE: http://www.net10.com

Boost Mobile

Boost Mobile is part of Nextel which is now owned by Sprint. They are targeting the youth market.

The cost os 20 cents per minute and 10 cents for nights and weekends. The walkie-talkie feature is an additional $1 per day.

Minutes expire after 90 days.

PRO: Walkie-talkie feature.

CON: Refill required every 90 days.

WEBSITE: http://boostmobile.com

Verizon Wireless INpulse

Verizon Wireless' prepaid cell phone plan is called "INpulse" and is using their CDMA network. They charge 99 cents per day as a fixed fee which means close to $30 per month even without making any calls.

Calls are 10 cents per minute with unlimited night minutes (9pm to 6am).

Refills expire from 30 days to 120 days, depending on the amount you buy.

PRO: Unlimited night minutes.

CON: 99 cents per day fixed fee.

WEBSITE: http://www.verizonwireless.com

Comparisons & Recommendations

Refill Requirement: The longest you can go without refilling your account is 365 days. With 7-Eleven Speak Out Wireless you get this for all refill amounts. So, if you spend $25, it will last you a whole year, assuming you don't make phone calls for more than this amount. With Cingular, T-Mobile and Tracfone you have to spend between $100 and $150 to get the 365 day option.

Cost Per Minute: The lowest cost per minute is 10 cents. To get this with Cingular, T-Mobile and Tracfone you have to spend $100 to $150 and buy their high-minute cards. Otherwise their minute cost varies between 13 and 40 cents. Boost Mobile offers 10 cents per minute at night, their normal rate is 20 cents per minute. Verizon Wireless charges 10 cents per minute but has a 99 cents per day fixed fee.

Fixed Cost: Verizon Wireless charges 99 cents per day, even if you don't use your phone. Cingular Gophone charges $1 per day for the days that you use the phone. Boost Mobile charges $1 per day for the walkie-talkie feature. 7-Eleven Speak Out Wireless charges 4 cents per day ($1.25 per month).

Recommendations: In my opinion, the best choice for a regular and low minute user of prepaid cell phones is Speak Out Wireless from 7-Eleven because of the 365 day expiration of the minutes and a reasonable cost per minute charge. If you are a high minute user, the Net10 Wireless option may be your best choice, but then a standard cell phone contract might be even better.