How to Decide Whether to Use Verizon Prepaid or Monthly Contract Cell Phone Plan

With the availability of pre paid or pay as you go cell phone plans and monthly plans, how do you know which Verizon plan to choose? There are a few things to take into consideration when determining whether to use a prepaid or monthly contract cell phone plan.

Difficulty: Moderate

Instructions

1. 

   Evaluate your credit standing. Many people use Verizon pay as you go cell phone plans because they have poor credit. They do not want to undergo the credit scrutiny as required with a monthly cell phone contract. If you have poor credit, then the prepaid cell phone option is the way to go.

2. Consider your test messaging requirements. If you want unlimited text messaging, the Verizon prepaid charges $20 a month. On the monthly contract plan you will have purchase the Verizon plan starting at $59.99 per month to include unlimited texting. The basic plan at $39.99 charges .25 per text message.

3. 
   Cell Phone

   Ask your friends and family if they are on the Verizon network. Verizon’s pay as you go and the monthly contract plans allow free calling for calls to and from customers within the Verizon network. However, the out of network calls will be applied towards the monthly minute allotment on monthly contract plans. Pay as you go out of network calls are charged at a rate of anywhere form 2 cents to 10 cents a minutes depending upon which option you choose.

4. Consider continuous coverage. With a Verizon monthly contract plan, you are assured of the same phone number and same plan for at least a year. Pay as you go plans, on the other hand, are on a month-to-month basis. If you are willing to pay $100 on the Verizon pre pay plan, you can extend your pay as you go service for a year. Doing so eliminates the worry of losing service or having to get a new cell phone number because you didn’t purchase minutes within the allotted period of time.

5. 
   Cell Phone

   Do a cost comparison analysis. You are the only one that knows how you use your cell phone. Sit with a pen and paper and review your habits and compare the cost of a monthly vs. the pre pay option. If you use your cell phone in the case of emergencies only, then the pay as you go plan is a winner. However, if you cannot live without your cell phone and use it exclusively, then the monthly contract is a better way to go. If you fall somewhere in the middle, like most cell phone users, you have to take the time to analyze the features, costs and cell phone usage.

Resources

• Verizon Monthly Contract Plans
• Verizon Pay As You Go Plans
• About Prepaid Cell Phones