This article will provide the basic facts on how prepaid cell phone plans function. Major differences exist between prepaid and traditional yearly plans, and you will need to understand these distinctions before choosing a plan that best fits your needs.
Whether you are in the grocery store, the doctor's office, or at your child's soccer game, you are almost certain to see someone talking on a cellular phone. Communication is of the utmost importance today, and many consider a cell phone a necessity instead of a luxury. Before acquiring a cell phone, you must decide which type of wireless plan you will use. Will you sign up for a yearly (or multi-year) phone plan and make monthly payments? Or will you purchase a prepaid phone having no yearly sign-up requirement? Individual circumstances are the key here, and there are some important questions to ask yourself before you arrive at your decision.
How often will the cell phone be used? Will it be used daily, a few times a week, or only for emergencies?
Will the phone be used for business purposes?
How much money are you willing to spend each year in order to have the use of a cell phone?
How Prepaid Cell Plans Work
The new cell phone user buys a prepaid phone (which usually comes with what is called a "starter kit") from a wireless company, mass retailer, drug store, or other establishment offering them for sale. In addition to the phone, this starter kit usually includes: a charger to recharge the phone's battery from home, an earpiece for when the phone is used while driving, and a quantity of minutes which will automatically be available for use once the phone is activated.
Purchasing and activating a prepaid phone
The cell phone user will then call a toll-free number from his home phone (also known as his land-line phone) to activate the cell phone and get a phone number assigned to it. The new cell user will answer a question pertaining to the geographic area his phone calls will originate from. This is a very important question and will determine the area code and phone number assigned to the phone. Roaming charges apply when calls are made from locations not considered as the user's home calling area. The new prepaid user should make sure his cell phone number corresponds to the city, town, or location from which most of his calls will originate. After calling to activate the phone, there might will be a waiting period of 12 to 48 hours before the phone is ready for use. The phone's battery will likely need a full charging at this point also. (Hint for those of you who do not like to set up or install things yourselves: If you purchase the prepaid phone at a wireless phone store, such as in a shopping mall, the sales clerk will very likely do the above step for you. The clerk can quickly activate your phone, assign it a phone number, and you can walk out with your phone ready to use in most cases!)