A prepaid cellular phone is a cellular which works with prepaid time. People using this kind of cell phone have to buy their amount of minutes before using them. It is usually done via prepaid cell phone cards and debit or credit cards. They are known as Pay As You Go cell phones. You can call everywhere with these phones, but, remember that if you do long distance calls, they are more expensive so you will have less minutes left on your phone.
Prepaid cell phone cards can be bought in grocery stores, convenience stores, postal offices and at your cell phone dealer. There are different prices available such as $10, $25 or $50. The more you pay, the more minutes you have.
Prepaid cell phones in Canada are offered by companies such as Telus, Verizon or Rogers.
Prepaid cell phones advantages are numerous: no long term contracts, no fixed monthly bills, no credit checks for most prepaid cellular phones, no deposits, no age limits, no activation fees with most prepaid cell phone plans, no hidden costs and, if you phone is stolen, you do not have to keep on paying your contract.
On the other hand, there are also inconvenients: higher cost per minute than with a long term contract plan, some pay as you go plans are only available in limited areas, most prepaid phones are as modern as other cell phones and many features are not available.
Finally, prepaid cell phones are for people who: have limited funds, use a phone just a few minutes a month (less than 400 minutes), are trying to rebuild bad credit, hate long term contracts, have had problems with a contract cell phone company, like pay as you go services and have children and want to control the amount of time they spend talking on their cellular phone.