(734)522-2500 33425 Ford Rd
LOCATIONGarden City, MI 48135

prepaid phone cards banner

 

Advantages of Prepaid Phone Services and Plans

THERE’S A REASON, WELL MANY REASONS, WHY PREPAID PHONE SERVICES AND PLANS ARE HOT IN THE INDUSTRY RIGHT NOW. AND THERE’S A REASON WHY TRADITIONAL MOBILE OPERATORS SUCH AS VERIZON, T-MOBILE, AND SPRINT HAVE BEGUN TO MOVE AWAY FROM LONG-TERM CONTRACT PLANS. WHEN IT COMES TO MOBILE & CELL PHONE SERVICES, CONSUMERS SIMPLY DON’T LIKE CONTRACTS. PEOPLE WANT THE FREEDOM ASSOCIATED WITH NO-CONTRACT PREPAID PLANS.

But even more than that, prepaid cell phone plans like Ultra Mobile, Lyca, Boost and others are becoming more and more appealing to consumers all over the country. To understand this phenomenon, I’ve conducted some research and found a few key reasons just why prepaid phone plans have become so hot!

Prepaid Phone Services Require No Contract

For one, prepaid plans mean no contract for the consumer. Prepaid phones are exactly that: prepaid. Not getting stuck in a long-term contract with your mobile phone carrier means more freedom. You pay for your plan beforehand and, as you use up your minutes & data, your balance will decrease until it reaches zero (if you use up all your minutes). At that point, you either purchase more prepaid minutes before your billing cycle arrives, or you renew your plan on the day of your billing cycle.

The month-to-month concept of prepaid phone plans didn’t bode well for larger mobile phone carriers since these money-hungry companies wanted to maximize profit by getting users to buy minutes and data they didn’t need. Long-term contracts worked nice and dandy for a while since consumers didn’t have an alternative, that is, before prepaid phone carriers entered the market giving consumers more power and helping users to get out of their contracts.

With prepaid phone services, you never need to call in and cancel your plan. You won’t get stuck having to listen to an annoying customer service representative go on and on about how ‘special’ you are and how you’re making a huge mistake. With prepaid, you just stop paying. Your service will stop. You go away! If, for whatever reason, your new carrier doesn’t work out, you can go back. No problem! This is the freedom that prepaid cell phone services provide and this is the biggest reason why prepaid is significantly on the rise.

Prepaid Phone Plans Mean More Efficient Use of Minutes & Data

Another thing to note is that just about all prepaid phone services and plans offer rollover minutes. Contrary to traditional mobile phone carriers with long-term contracts, you’re able to make the most of your money with prepaid phone services. If you purchase ‘x’ amount of minutes and don’t use up all your minutes during the month, just about all prepaid phone service carriers will allow you to roll over your extra minutes into the next month.

This means that, with prepaid, just about every dollar you spend is going towards what you’re actually buying.

This efficient use of your money does not exist with long-term mobile contracts where you’d lose your minutes if you don’t use them up before the end of your monthly billing cycle.

No Credit Checks are Required with Prepaid Cell Phone Plans

Especially for teens and young adults without a credit history, and in addition to other consumers with bad or no credit, getting into a cell phone contract (or any contract for that matter) is near impossible without begging a friend or family member to cosign. And when it is possible, traditional cell phone carriers would require a large initial financial deposit to mitigate their own risk. Unfortunately, the idea of a deposit in this situation is completely illogical since most people in such circumstances are not in a position to afford such deposits in the first place.

Prepaid cell phone plans solve this problem by helping those with little or no credit avoid getting credit checks in the first place. Since the user is prepaying for the plan, there is no need for a credit check to be conducted, and no need for any sort of financial deposit.

It must be mentioned that your credit score will slightly decrease every single time someone runs a credit check on you. Fortunately, this doesn’t affect those getting prepaid plans.

Prepaid Cell Phone Plans Offer Highly Competitive International Calling Rates

Prepaid phone service carriers don’t usually have their own communication infrastructure like larger mobile phone carriers such as Sprint and Verizon. Instead, prepaid carriers tend to ‘rent’ space from traditional carriers. For instance, Boost Mobile works on the Sprint Network. Cricket works on the AT&T network. And MetroPCS works on the T-Mobile Network.

But opposite to what many would think, this doesn’t mean prepaid phone carriers are inferior in service. On the contrary. Not having to maintain a huge, costly communications infrastructure means prepaid cell phone service carriers are able to apportion their money towards other consumer-based services like offering cheap international calling rates. Ultra Mobile and Lycamobile are two such examples of prepaid phone service carriers that have done a wonderful job increasing the value of their service by offering highly competitive international calling rates.

Sadly for traditional mobile phone carriers, they must spend hundreds of millions of dollars every year to maintain a costly infrastructure. While it does provide some benefits in other areas, this means that traditional carriers have a lot of catching up to do when it comes to offering international calling solutions for a consumer-base that’s demanding more and more international calls at less and less cost.

Prepaid Cell Phone Services & Plans are More Cost Effective

In the early days of prepaid, rates were quite expensive. Prepaid was actually viewed as a temporary and expensive fix. But this is far from the case today. There are literally hundreds if not thousands of prepaid phone service carriers today and the industry is oversaturated, which is always good news for consumers. Prepaid rates have significantly dropped and countless prepaid phone plans now offer unlimited talk & text, all at cheaper rates than traditional contract mobile phone carriers.

Even when a prepaid plan costs the same as a comparable contract/postpaid plan, you’re still able to save quite a bit of money.

Firstly, any unused minutes with your prepaid phone plan will be rolled over to the next month, saving you money the following month. This won’t be true with a contract carrier. In addition, it’s a constant complaint of mobile contract customers that their mobile carriers charge ridiculously high data overage fees, and they’re not forewarned when they go over their data limits. So they receive ridiculous overage fees after-the-fact. This is something you can completely avoid with prepaid plans.

Finally, traditional carriers and contract plans are known to have lots of fees, both direct and hidden. On the other hand, prepaid plans are simple & straightforward, allowing you to be in control the entire way.


If you live in the Detroit-Metro area, including Canton, Garden City, or the surrounding areas, stop by Microserve Computers to select one of our many prepaid cell phone plans & services. Start saving today and stop paying all your hard-earned money to the profiteers of traditional cell phone carriers!