You have likely seen a vast inventory of prepaid phones at your local retail shop. Maybe online advertisements about these phones beckon your attention. Prepaid phones seem like a good deal, but what are they? Once you learn the “ins and outs” of prepaid service, you’ll discover these phone deals may be a good choice.

How Prepaid Phones Work

Prepaid flip phones or smartphones employ a simple strategy: you pay in advance to load the phone with a set amount of data, text, and minutes. For, say, $29.95, you may receive 200 minutes, 200 texts, and 1 GB of data per month. Anyone who doesn’t use a phone very much could find a minimal deal like this appealing. Of course, the prepaid phone companies want the business of as many customers as possible. A costlier plan with expanded service options is likely available. Add-ons such as rolling over unused data to the next month could be possible as well.

The consistent business model among all providers involves pre-paying in advance for the service. Don’t fret about exceeding your allotment. Paying extra to load additional minutes/text/data remains a standard option.

No Contracts and No Commitments 

One feature consumers prefer about prepaid phones is the “no contract” rule. With a traditional cellular service provider, customers must sign a contract for one or two years of service. Month-to-month deals don’t start until the initial contract expires. Even then, not every provider may allow month-to-month options. With a prepaid phone, users aren’t locked into any term or commitment. They may choose to discontinue the phone after a few weeks of use. Discontinuing service remains a prerogative.

No Credit Checks 

Cellular service companies worry about clients paying their monthly bills. A credit check paints a picture — fairly or not — about a customer’s reliability. Sadly, clients may be informed of higher rates or outright turned down if a check shows poor credit. With prepaid phones, this won’t be an issue. Credit checks aren’t necessary when someone pays in advance for service. Anyone worried about denials has another option to explore.

Decent Phone and Cellular Service Selections 

The phones associated with prepaid accounts vary in quality depending on price. Most quality phones come from a name-brand manufacturer. Spending a little extra for a better phone could alleviate concerns over quality. Also, look for a phone that comes with a reputable cellular service provider. This way, the phone works when needed.

Locked Phones 

Be mindful prepaid phone deals are usually locked phone arrangements. A locked phone only works with one carrier. A prepaid Verizon phone, for example, can’t switch over to T-Mobile service. Consumers must think carefully before choosing a locked phone.

Prepaid phones aren’t complicated in any way. Maybe such a phone would make sense for you and your calling requirements. Look over the inventory of available phones and make a selection.