A "pay-as-you-go" phone is simply a cellular or mobile phone without a standard monthly billing contract. Owners of pay on the go phones pre-pay for minutes that are added to their account. Once a subscriber runs out of minutes, he will need to purchase more. In most cases, a credit card is not required. A subscriber can purchase a phone card at a grocery store, drug store, or cell phone store and reload additional minutes.
The same features available on a standard phone are available for pay as you go phones. Almost all pay as you go phones include caller ID, call-waiting and voicemail. The available cell reception is the same as that of a mobile phone with a monthly contract and you can even purchase a pre-paid phone with a digital camera or Internet access. Most prepaid cell phones are also capable of sending and receiving text messages, although you may have to pay extra to send them.
In the last few years, pre-paid cell phones or pay on the go phones have become available almost everywhere. You can find them at grocery stores, drug stores, mass retail stores like Target and Wal-Mart and even gas stations. Most places that sell the phones also sell "refill" or "reload" minute cards. You can also purchase additional minutes online or over the phone.
Depending on the phone, prepaid cell phones start at around $30 for a basic phone and go up to over $200 for trendy phones like the Motorola Razr. Generally, the more features included and the smaller the contract mobile phone, the more expensive the pay as you go phone will be. Available features with pay on the go phones are similar to all the features available to mobile phones with a monthly contract.
Pay on the go phones are excellent options for many people, particularly those that anticipate using the phone for less than 60 minutes a month. You do not need to have a credit check or own a credit card to have a prepaid cell phone.
There are no monthly fees. These phones are ideal for teenagers or anybody who simply does not want to have a monthly cell phone bill. People with previous problems going over their included minutes in a contract will quickly learn to conserve minutes according to their budget.
The only real disadvantage of owning a pay on the go phone is the price you pay for using a lot of minutes as compared to the price of a phone with a contract. With some plans you will be forced to "lose" minutes if you do not use them within a certain amount of time. Make sure you read the small print carefully on your prepaid phone. You are not under a contract, but you are agreeing to the carrier's terms.
With the increasing popularity and demand for pay on the go phones, almost all major cell phone carriers offer prepaid cell phone plans. These carriers include:
Shop around to see which of the many pay as you go plans will work best for you.