There is no denying that cell phones are a vital part of life. When it comes to owning a cell phone and getting service with the phone, you need to decide if you want a no-contract phone, also known as a pre-paid phone plan, or if you want to be locked into a contract. There are some important reasons why a no-contract phone plan may be the right choice for you.
No Credit Checks
When you sign up for a phone contract, before giving you the contract, the phone provider will often run a credit check on you. They want to ensure that you are going to fulfill the terms of the contract. If you don't want a credit check ran on you or you know that you don't have a great credit score, a pre-paid plan is the way to go. As you are paying upfront for the services you are getting and not being billed later for services you already received, there is no reason for a credit check.
Avoid Overage Fees
With a traditional cell phone plan, if you go over your talk minutes or data, you could be looking at a very big bill. Overage fees tend to be really expensive, and they can add up quickly. Once you incur an overage fee with a traditional contract, there isn't anything you can do if you still need to continue to use your phone. You are locked into your contract, and you have to pay the overage fees.
With a no-contract plan, there are no overpriced overage fees for you to worry about. If you go over your limits, you just have to pay more at the regular price. Until you pay, you can't use that service, but you also will not have to face overage fees that don't fit with your budget.
There is a misconception that if you have a no-contract cell phone plan, you are going to have to put up with worse coverage. That is simply not true. You will not be subjected to worse coverage due to being on a no-contract plan. You will get the same coverage you would with a post-paid contract plan.
Most no-contract plans offer some really great add-ons. If you are traveling internationally, you can add international coverage when you need it and take it away when you don't need it. You can pay for access to mobile hotspots, so you can always access the internet when you need it.
If you feel like a no-contract phone plan is right for you, it is time to make the switch. Many national and regional cell phone providers offer no-contract phone plans, as they understand the benefits that these types of plans offer individuals.