So, you’ve decided to get a new phone or add service to a phone you already have. Congratulations! As you’ve been considering a variety of phone plan options, you may have heard the terms prepaid phone plan and postpaid phone plan… but do you know what those terms mean? I’ve broken them down for you below to help you choose the right plan for you.
What is a prepaid phone plan?
Getting prepaid wireless service or a prepaid phone plan means that you’re paying up front for your service charges every month or every few months. If you think that prepaid wireless service is the best option for you, you’re only committed to it for the amount of service you purchase ahead of time. This type of plan can be especially beneficial if you prefer not to have a credit check or want more control over your spending.
You pay as you go, and if you miss a payment, your phone service is made unavailable. Your account may remain for some time, however, so you can return to the service when your funds allow. In the event that you don’t need your phone for an extended time, you’re not stuck paying a monthly bill when you’re not using it. And if you choose a data plan that isn’t unlimited and runs out of service, you have the option to add more.
Many prepaid carriers offer a variety of mobile plans that can suit different needs, from basic talk and text to comprehensive data packages. These prepaid options allow you the flexibility to pick a mobile service with greater or fewer perks at different price points to match your preferences.
If you plan on traveling to other countries, some service providers charge additional fees for international roaming. Investing in a prepaid phone plan that’s local to the country you’re visiting and installing a temporary SIM card may be a cost-effective solution since international data packages may only be available to postpaid customers. If you’re uncertain about whether your mobile plan will charge international roaming fees, contact your service provider’s customer support team to confirm.
Best for light mobile users
Prepaid plans are ideal for those who use their phones primarily for calls and texts with occasional data use. If you prefer flexibility without worrying about a monthly bill, prepaid is your best bet.
What is a prepaid phone?
In terms of the devices themselves, there isn’t really such a thing as “prepaid phones” or “postpaid phones.” You can use any phone that is compatible with your wireless carrier’s network for either type of service. That said, providers that offer prepaid service tend to include lower-priced phones in their line-up that you can pay for upfront without taking on a big expense or using financing.
Be sure to check if the provider has special financing, deals, or offers for the phone you have in mind. In many cases, however, your best options may come with a postpaid phone plan.
What is a postpaid phone plan?
Postpaid wireless service means you’re paying a monthly plan charge for service that typically includes some combination of calls, texts, and data usage. If your wireless plan is capped at a specific amount of data usage, you’ll either see overage charges on your bill for additional data to be added to your account if you go over your allotment for the month, or your ability to use data will be limited for the rest of that billing cycle.
On the other hand, if you have a wireless plan with unlimited talk, text, and data usage, you’ll pay the same rate plan charge every month regardless of your usage amount. You’ll only pay additional charges for features not included in your postpaid rate plan, such as insurance for your phone or an international package that you add for calls, text, and data usage while on a trip abroad. This consistency can make budgeting easier since you know what to expect on your mobile phone’s monthly bill.
However, although you won’t be charged extra for going over a pre-specified data limit, your provider may temporarily slow down your speeds. If you use your phone for a lot of applications, gaming, and other high-data activities, you can choose a plan that allows higher thresholds of maximum data usage.
Best for heavy mobile users
If you’re a heavy mobile user, then postpaid offers plans with unlimited talk, text, and data, as well as added perks. In addition to applications and gaming, unlimited plans cover you for activities like streaming or downloading videos, audiobooks, and other files, and tasks where you need constant internet access and mobile communication. In these cases, a postpaid plan will suit you better.
Is prepaid better, or is postpaid better?
To help you decide between prepaid and postpaid plans, here’s a detailed comparison:
| Feature | Prepaid plans | Postpaid plans |
| Cost | Pay as you go, may be ideal for budgeting | Billed monthly, high-data plans can be more costly |
| Commitment | No long-term contracts | Often requires a contract |
| Credit check | No credit check needed | Usually requires a credit check |
| Flexibility | Flexible – not obligated to keep service every month | Less flexibility, may have early termination fees |
| Plan features | Basic features, limited extras | More features, perks, and add-ons |
| Data speeds | May have slower speeds or data caps | May offer faster speeds and fewer data restrictions |
Both prepaid and postpaid plans are great options for connectivity. You just have to choose what’s best for your data usage, lifestyle, and how you manage your budget. The biggest differences between a prepaid phone plan and a postpaid phone plan are how you pay for your service and what you require for your data needs.
You can pay as you go or pay a recurring monthly bill for each service period. Consider the flexibility and control you may need, the service options that’ll serve you best, and the features, add-ons, and level of convenience you need in paying your bill. Also ask yourself if you’ll worry about running out of service if you choose a prepaid plan and you reach your limit for the month.
Before you make your decision on which kind of service you want, make sure you check out both prepaid phone plans and postpaid phone plans to find the option that works best for you.
Visit att.com to browse learn more about our prepaid and postpaid phone options. Find your local AT&T store to speak with an in-store representative.
Updated by Zoya Cochran, TechBuzz by AT&T and AT&T Business Insights managing editor and contributor. This article is AT&T sponsored content originally written by Carly Milne, a formerTechBuzz contributor. The statements in this article are her own and don’t necessarily represent the positions, strategies, or opinions of AT&T.
