There comes a time in your life that you will need to make a call. Whether if it is a serious situation and you need to call 911 or you have a flat tire and need assistance. So if you wanted one, you would probably pick one that you would like. So what about getting that phone at a reasonable price? There are two types of cell phone services you can pay. A 2-year agreement contract or prepaid. I will show you the differences before you even spend your money.
First, what are the two? A 2-year agreement contract means that basically this is your phone for 2 years. You have to pay the bill or it will effect your credit. Prepaid phones are not required to have a contract. You do not have to pay the bill every month and it will not effect your credit. For prepaid phones you simply buy a phone card. They have a scratch-off serial number on the back. You key it in your phone then it has service. These cards are called top-up cards and will last you for 30 days.
Okay, let’s talk about the price and fees. I am going to give you a scenario. Let’s say you really want the Samsung Galaxy S5. You have two different options. A 2-yr contract or prepaid. The price of this phone would be $250 on a 2-year contract. On a prepaid company it would be $600. Now that is more than double. This is where it gets really complicated. There are three aspects to cell phones in today’s world. Those are talk, text, and data. There is no 2-yr contract company offering you unlimited data. The are some prepaid ones that will. The catch behind that is after you reach your data limit the data is throttled. Meaning it will move at a steady speed. So if you had 4G LTE, it might drop to 1X. On the opposite end, almost every 2-yr contract provides unlimited talk and text. Prepaid companies set a limit for about 250-1000 minutes/texts. The higher plans do offer unlimited talk and text.
So how much a month for your bill? They get pretty pricey. A 2-yr contract will start anywhere from 50-anything. This is no joke. There are all types of fees in a 2-yr contract. On my phone bill, if you go over your data limit, then you will pay 15 more dollars for every gigabyte. I already went over this month. They can also charge you for late payments. I have never missed one, but they are 35 dollars. There is also an activation fee. This is also 35 dollars. So it is a lot of fees and some I didn’t mention. On the other hand prepaid phone’s monthly plans range from 25-80 dollars, depending on your provider. They do not have any fees or payments. You do not have to be committed to pay for the phone every month. There is no activation fee. These are some things to consider.
Also, when buying a phone, think about the service. The service is how well your cell phone picks up reception in your area. Two-year contracts seem to have great service signal. On the other hand, some prepaid companies do and some do not. Its all depending on your area. Also what if you want to just get rid of it. As in you did not like it after the first couple of days. For a prepaid phone, you can return it back to the store if you have a receipt. As for the 2-yr contract, you have to pay a 350 termination fee. I hope this was helpful. Which one would you choose?