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PROS: |
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- No deposit required
- Normally, taxes and fees aren't added, including
"activation" fees
- Pay as you go: Pay only for what you use
- You can be anonymous
- No monthly bill, and you can set up some
plans to "auto-pay"
- No contract or required service period, and No Early Termination Fee
- Previously purchased minutes automatically
renew when you refill
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CONS: |
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- May not have detailed call reports
- No credits can be issued for "mistakes"
- Refill dates are critical
- Coverage may be less than postpaid plans
- Limited selection of phones
- Rates and expiration depend on refill amount
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Do the Math:
Divide the amount you pay per month for cellular
by the actual number of minutes you use.
Most people never use all the minutes they
pay for, so the per-minute price is surprisingly
high. Pay-As-You-Go can be as little as .05
a minute, but you can save money at a rate
as high as .35 per minute. Keep in mind that
if you drop your current wireless plan you
may be charged an Early Termination Fee.
However, it may be worth it. |
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Do Check Your Options:
Determine how much you can do with your current phone and current carrier. To save the greatest amount of money you
may need to change one or the other...or
both. If you truly love your current phone,
you may not see maximum cost savings. With
some carriers, you can't use that phone off
their network or on a prepaid plan. |
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Do Check for Coverage and Features:
Make sure your new Prepaid plan includes
the features you need, not necessarily the
ones you might use. Also, make sure your new choice provides
coverage where you need it without Roaming
charges. Check the Online Coverage Finder and look for "Prepaid" Coverage. |
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Don't Feel Like You Are Limited to a Few
Phone Choices:
In many cases you can use use a phone from
another source other than those offered by
a Prepaid retailer. You might need an "Unlock"
code, and some stores can 'flash' new software
on your phone. In some GSM phones you can
just slide in a new SIM (programming chip).
It is not unusual to buy a special "Prepaid"
phone just to initiate the service, then
use your old phone on that account and set
the "Prepaid" phone aside. The
phone must be compatible with the CDMA or
GSM technology of the Prepaid carrier. |
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Don't Make the Switch in the Wrong Order:
If you plan to change to a Prepaid plan that
is not with your current carrier with your
current wireless phone number, let the new
carrier initiate the move and cancel the
old service for you. Use the Step-by-Step list at How to Switch to Prepaid. |
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Don't Get Caught by the Prepaid "Gotchas":
The cellular companies don't really want
you to pay by the minute, so they throw several
hurdles at you: short renewals that reset
on the date you pay...not when your old minutes
expire, Roaming charges, reduced Off-peak
or Mobile to Mobile capabilities, and changing
your rate based on your refill amount. They
are slowly becoming a little more consumer-friendly,
but if your carrier isn't, we'll help you make the switch,
even with your existing phone. |
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Don't Confuse "Prepaid" with "Pay
As You Go":
There are several Prepaid plans that still
give you a certain number of minutes, including
"Unlimited" for a fixed monthly
charge. Pay As You Go plans allow you to
pay only for what you use, and if you use
fewer minutes, you pay less. |
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Don't Be Afraid to Experiment:
Order an inexpensive pay-as-you-go phone
to test your choice of prepaid services.
If everything works out, you can then either
switch to your favorite phone or invest in
something fancier. If it doesn't, you're
not on the hook for the next 2 years. |
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More Decision-Making Resources: |
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