Best Prepaid Phone Companies

Terms to know

As you look for plans, you might see a variety of terms and services you’re unfamiliar with. These are some of the words and phrases you might come across in your research.

• Pay-as-you-go: This phrase describes a type of plan or way of obtaining service. These plans are the most traditional prepaid options. You buy minutes, messages and data as you use it. The services you buy are good until you use them all.
• Service period: Newer plans offer customers unlimited services for a certain amount of time. When you get this service, you’ll pay the same amount for your service period, typically one month, regardless of how much or little you use your phone. If you don’t add money to your phone account before your last service day, your phone will stop working.
• Unlimited data: Many plans that have a service period advertise unlimited data. While these plans do usually allow you to connect to the Internet as much as you want, only a certain amount of predetermined data will be high speed. After you use that data, your connection will be significantly slower. The amount of high-speed data you can use often determines how much you’ll pay.
• SIM card: Subscriber identity module or SIM cards allow phones to connect to mobile networks. You’ll need a SIM card from the prepaid company you choose. If you buy a phone from that company, they will automatically include a SIM card. If you use a phone you already have, you can purchase a SIM card for a low price, usually under $10 and sometimes as little as 99 cents.
• MVNOs: This acronym stands for Mobile Virtual Network Operator. Many prepaid carriers are MVNOs, meaning they do not own the infrastructure used to send information over the airwaves. These companies purchase services from carriers who do own the infrastructure at wholesale/bulk rates and then pass the savings on to their customers.
• BYOP: Many prepaid carriers allow you to bring your own phone (BYOP). You can save a significant amount of money by using your existing cell phone. When you bring your own phone, you’ll only need to purchase a new SIM card.

Phone options

If you want a certain phone or want to keep your existing phone, consider looking for carriers that have the phone options you want first. Then select the one that has the best plans and prices.

• New phone: If you want a new phone or don’t already have a phone, look at the phones available from the carrier. Not all carriers have all phones.
• Third-party purchases: Carriers may not offer the lowest prices on new phones. If you need a phone, consider shopping for an unlocked phone elsewhere and then order a SIM card from your new carrier. Not all networks support all phones, so confirm that the phone you’re considering will work before making a purchase. You can usually find information about supported phones on carriers’ websites.
• Existing: If you already have a phone you like, you may be able to use it on a prepaid carrier’s network. You will merely need to order a SIM card from the carrier. Not all networks support all phones, so confirm that your phone will work before ordering a SIM card or signing up for service. You can usually find information about supported phones on carriers’ websites.

Refill options

Consider the way you can add minutes, data or service days to your phone. Choose a company with the option that will be most convenient for you.

• Online: Nearly all prepaid plans give you the ability to pay for service or add minutes online.
• By phone: Most plans allow you to call a customer service agent to add service. Some companies have automated systems so you can pay by phone without speaking to anyone.
• In person: Companies that have retail locations may give you the choice to go into a store to pay for service.
• With refill card: Many companies sell refill cards at major national retailers. You can purchase one of these cards in person and then use it to add minutes online.
• Automatic payments: Plans that have a service period usually give you the chance to set up recurring payments. You will be billed for the plan you’ve selected on the last day of your current service period. You can cancel these recurring payments at any time; they are not the same as a contract.

Plans

When you choose a plan, think about the services you use most and select one that offers you those. If you currently have a traditional plan, you can likely see your average usage on your provider’s website. Use that information to help you select the plan that most closely meets your needs so you don’t spend money on services you won’t use.

• Talk: If you spend a lot of time talking on the phone, you will either want a plan with unlimited minutes for calls or a pay-as-you-go plan that has a large number of minutes.
• Text: If you love to send text messages, look for a service-period plan that allows you to send an unlimited number of text messages or a pay-as-you-go plan with a low price per message.
• Data: If you browse the Internet on your phone, stream music or videos or rely on your smartphone for work emails, make sure you select a plan with enough high-speed data. Unlimited plans will prevent you from dealing with unexpected overage charges. If you don’t select an unlimited plan, make sure you know how to check your data usage so you don’t get overage charges, which are usually quite high.

International calling

If you regularly communicate with people outside of the United States, you’ll want a company that offers options for international calling and messaging.

• Free mobile to mobile: Some plans offer free calls between cell phones, so if you only call cell phones outside the United States, one of these could be a good option.
• Free international: Some plans are specifically designed for international communication. These plans may be more expensive than domestic plans, but calls and texts to those in other countries will be included in the service price.
• Incoming call benefits: Some companies provide you with numbers that are local to other countries. This feature means you can give friends and family in those countries a number to call so they can avoid being billed for an International call. This option helps the people who call you save money.
• Additional fees: If you only occasionally call other countries, consider choosing a company that gives you the option to add international service on an a la carte basis. Plans with a set number of international minutes or text messages can be found for as little as $5.
• Included countries: Some plans and add-on services are labeled as international plans but do not allow you to call any other country. Make sure to read the fine print when purchasing international minutes or text messages.

Features

Prepaid plans are often designed to give you what you need without charging you for extra features you may or may not use. Make sure the carrier you select offers the features you need most. Check to see if they’re available on the phone you’ve selected, and ask if the service price includes them or if you must pay an additional fee.

• Included features: Carriers offer most basic features, like voicemail and call waiting, for free. However, these features aren’t necessarily supported by all phones. Additionally, using these features may use your minutes or data.
• Additional fees: Carriers who want to woo customers away from traditional cell phone providers are most likely to offer a wide variety of features that consumers have become accustomed to. These features, like voice-to-text or mobile hotspots, must usually be purchased separately.

Pay-as-you-go plans

These plans let you purchase services (talk/minutes, text messages and data) as you use them. They are the most basic plans and are an excellent choice for consumers who want a phone for emergencies only or other very limited use.

Unlimited plans

Unlimited plans allow users to make an unlimited number of calls and send an unlimited number of text messages during a set service period for one preset price. These plans are great choices for people who want service like that offered by traditional carriers.

International plans

International plans allow customers to place calls or send text messages to numbers in other countries. These plans may also let U.S. customers use their phones when they’re traveling abroad. Several types of plans, with varying types of included services, fall into this category. Consumers should think about how often they communicate with individuals outside the United States and what countries those people are in before signing up for an international plan.

Budget-conscious consumers

Consumers who want to get the most for their money should look at the prepaid options available. Those looking to pay as little as possible should consider pay-as-you-go plans, while those who want to save money but have service similar to that offered by traditional carriers should look at unlimited plans.

Parents and guardians

Those who want their child(ren) to have a cell phone for safety but want to limit their use of the phone should look at the prepaid options. Pay-as-you-go options will prevent children from spending more time on their phone than their parent or guardian allots. Unlimited plans might be best for teens who will want to use their phone more often.

Business owners

Business owners who provide cell phones to their employees can use prepaid plans to prevent employees from using the phones for unintended purposes. No-contract plans are especially good for this group if the business owner isn’t sure whether they want to provide phones.

Temporary users

Individuals who only need coverage for a short period, perhaps while traveling abroad or if they’ve damaged their phone and don’t want to purchase an expensive one from their current carrier, can purchase and use an inexpensive prepaid phone.

Non-cell phone users

Individuals who do not use a cell phone often but who want one for safety and emergencies should look into prepaid options. Pay-as-you-go plans will give these individuals security without adding to their monthly bills.