Prepaid Phones: Everything You Need To Know

Prepaid phones are devices that you pay for upfront, and couple with a prepaid phone plan. By paying for your phone upfront, you can avoid getting locked into a 24 or 36 month device repayment plan that tethers you to a certain carrier. By actually owning your new phone, you can bring it to a new carrier if you decide to switch.

In this article, we’ll further explain what prepaid phones are and why they might make more sense to go with than a device paid for via an installment plan.

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Prepaid Phones: What Are They?

Prepaid phones are phones where everything for the month is paid for upfront instead of monthly plans where you pay based on usage. Prepaid phones allow users to purchase a certain amount of data and minutes for the month, while postpaid plans tally up how much you used throughout the period.

You can purchase prepaid phones at phone retailers or stores like Walmart, and many network providers offer prepaid phone plans to go along with them. Prepaid phones require no commitment from the user, as you pay for everything you plan to use with no chance of a hidden fee biting you down the road.

Getting a prepaid phone doesn’t mean sacrifice. You can get Apple iPhones, Android devices like the Samsung Galaxy A12, Motorola phones like the Moto G, and others. And yes, you can still use all the same apps and features on a prepaid phone.

Regarding provider options, companies like Mint Mobile, Boost Mobile, Straight Talk, Cricket Wireless, and Simple Mobile offer great prepaid plans. Traditional cell providers also offer prepaid phone services, such as AT&T prepaid, Verizon prepaid, and Metro by T-Mobile.

Benefits of Prepaid Phones

As mentioned, one of the key benefits of prepaid phones is that they give you the power to bring your own device to a new carrier whenever you like. This can really open up the market for you, allowing you to choose not just from postpaid carriers and cell phone plans but prepaid ones as well. And if your phone has an eSIM, you don’t even have to go about manually popping a SIM card in and out to join a new carrier—you can do it all electronically.  

Prepaid, no-contract phones also allow you to sell your own device and pick up a new one whenever you like. Standard postpaid device installment plans not only require you to pay off the full balance of your phone if you decide to get a new one, but may charge an early termination fee as well. By avoiding all of this, you can quickly unload your current device and pick up anything that strikes your fancy without having to go through a bunch of hoops. 

Lastly, prepaid phones allow you to avoid the credit check that usually comes along with signing up for a device installment plan. If you have less-than-stellar credit—or just want to avoid the credit inquiry—it’s smart to go with a prepaid phone. 

Who Uses Prepaid Phones?

Prepaid phones are great for people who do not want to commit to a long-term phone deal. For example, getting a prepaid phone could be a great option if you need a work phone in addition to your primary mobile phone but do not want to manage a second expensive phone.

It is also a good option for parents who want to give their kids a phone without allowing them to become reliant on it. By limiting talk, text, and data, your child can ease into the experience of having a cell phone and learn responsible habits.

In addition, anyone who does not plan on using their phone too often would not need an extensive plan from a large company, so a prepaid cell phone plan could make more sense.

The Difference Between Burner and Prepaid Phones

A burner phone is usually a prepaid phone; however, a prepaid phone does not always have to be a burner phone. A burner phone is a phone that a person only intends to use for a limited period before getting rid of or “burning.”

People use burner phones to maintain their privacy by purchasing phones and plans that do not require long-term accounts or subscriptions tied to their names.

Because of this preference, prepaid phones are the best options to act as burner phones because of the control and freedom owners of these phones have. That being said, a prepaid phone could efficiently serve as someone’s primary phone for years without any intention of burning the device.

There are plenty of unlimited prepaid plans that provide plenty of data, talk, and text for their customers. In essence, while prepaid plans are the ideal burner phones, their versatility allows their function to go beyond privacy and short-term use.

Types of Prepaid Phones

You may have a concept in your head of what a prepaid phone is—perhaps an inexpensive midrange device like Samsung Galaxy A03s, Samsung Galaxy A15, moto g power 5g, or moto g stylus (which all great and capable devices by the way)—but really any phone you pay for upfront, as opposed to on a device installment plan, can fall under this category. 

So you’re not limited to just the iPhone SE, but any flagship iOS device, including the new iPhone 15. The same goes for Android devices: you can buy any Google Pixel or Samsung Galaxy device upfront and turn it into a prepaid phone. 

What Are the Disadvantages of Prepaid Phones?

One big difference between a prepaid and a postpaid plan is that they tend to come with an array of extra bells and whistles since they are the plans that big companies want to advertise the hardest. For example, Verizon’s highest tier unlimited plan has high-speed data, talk, and text, premium mobile hotspot data, Hulu, Disney Plus, extra cloud storage, and more.

Prepaid phones will generally only have talk, text, and data. You pay less, but you also get less for your money — though less can often still include unlimited talk and 4G LTE or 5G network connectivity. If you purchase your phone for a family, you can also get significant discounts per line.

These family plan options are not available with prepaid phones, as the price is what you usually see at face value. If you are looking for the highest possible quality service with the most available features, you will want to go with a postpaid plan.

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How Can You Buy a Phone?

Prepaid smartphones are easy to buy, as you can purchase them through the most prominent service providers. This includes the big three telecommunications companies in the U.S.: Verizon, AT&T, and T-Mobile. You can also buy and activate a prepaid phone with a smaller service provider or a retailer like Target or Walmart.

The Bottom Line

Prepaid phones are not for everyone, but they do have their niche. If you want total freedom and control over your phone plan and you are not someone who goes overboard on their talk and text, a prepaid plan could be perfect for you. Prepaid plans are great for single-line purchases, and there is no commitment involved, so you can easily go a different direction if your current prepaid plan is not for you.

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Frequently Asked Questions

What is a prepaid phone?

Prepaid phones are devices that you pay for upfront, and couple with a prepaid phone plan. By paying for your phone upfront, you can avoid getting locked into a 24 or 36 month device repayment plan that tethers you to a certain carrier.

Which prepaid phone service is the best?

There are dozens of prepaid phone service providers, including well known brands like Boost Mobile, Mint Mobile, Straight Talk Wireless, and Visible. The best one will depend on your personal preferences and the quality of coverage they provide to the places you spend time.

What is a downside to prepaid phones?

Prepaid phones will generally only have talk, text, and data. You pay less, but you also get less for your money — though less can often still include unlimited talk and 4G LTE or 5G network connectivity.