Prepaid or Postpaid Smartphone — Which Should You Buy

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Buying a new smartphone can be confusing, and that’s understandable. Not only do you have to consider hardware specs, software features, and choice of carrier according to your needs, you also have to decide on a payment plan. Which is best for you, prepaid or postpaid plans? Find out here.

If you see yourself making a lot of calls, you’re better off choosing postpaid for its typically lower rates for calls, texts, and data. With a postpaid plan, you pay at the end of a monthly period for the service. Postpaid also offers a premium experience by offering the latest high-end smartphones available at a subsidized price and complementing it with perks like 4G coverage. On the other hand, postpaid plans require you to sign a contract that typically locks you in for two years. Ending the contract prematurely come with hefty termination fees.

The prepaid subscription, in contrast, is a no-contract carrier model. You pay in advance for a specified duration of calls, number of texts, and amount of data. Prepaid is recommended for users who wants better control of their finances. The rates may be higher than postpaid, but you only need to recharge as you see fit. There are also no service agreements, and the absence of a contract means you can switch to another provider any time you like. But while prepaid boasts control and anti-bill shock, its choices of smartphones are not as robust as postpaid. You also need to pay the full price of the smartphone, because there’s no subsidy in prepaid.

Even if you ask a consultant for recommendations, the type of plan to choose is entirely up to you. Both postpaid and prepaid have their ups and downs. All you need to figure out is which of the two caters best to your interest.