Function
Prepaid cell phones are designed to offer simple phone service without requiring a credit check, contract or commitment. Instead of a monthly fee and usage limits, buyers can pay one price for a phone and simply purchase as many minutes as are needed.
When these prepaid minutes have been used, cell service is turned off. However, additional minutes can be easily purchased and added at any time. This pay-as-you-go format allows people to use a phone at certain times, such as while traveling, without paying for constant service.
Activation
To get started with a prepaid cell phone, a buyer first chooses a phone. These phones are commonly available at electronics stores or general merchandisers. Each phone is assigned a unique phone number, just like a traditional phone. Once the phone has been purchased, it is automatically activated the first time it is used.
In order to add additional minutes to the phone, a minute card is typically used. This card is purchased separately from the phone. Differently priced cards allow access to a different number of minutes. A special pin number on each card unlocks new minutes once it has been entered into the phone.
Limitations
While prepaid phones have many benefits, they also come with certain disadvantages. In many cases, minutes purchased from a card can expire if not used soon enough. Additionally, the cost per minute on a prepaid plan is commonly higher than a traditional phone plan with a contract.
Despite these limitations, prepaid cell phones are smart options for people with past credit problems or individuals who do not need long-term cell service.
Tags: additional minutes, cell phones, cell service, prepaid cell, traditional phone