Prepaid vs postpaid phone plans
How each one bills, in FCC terms, and what it means for your phone.
Postpaid, in FCC terms
The FCC says postpaid plans "are billed at the end of the month after service has been provided and often require a credit check when starting a new account." It says these plans "may include a contract and require an early termination fee."
Prepaid, in FCC terms
The FCC says prepaid plans "require the consumer to pay for service upfront at the beginning of the month, before service is provided, and typically don't require a credit check."
Spending limits
The FCC says a pre-paid plan "may help keep your phone bill in check." It says that when you pre-pay for all your minutes, "you will be unable to go over your set limit." Ask the carrier whether the plan adds charges or refills automatically.
The phone itself
The FCC says prepaid plans "often come with a discounted or free phone and may require the phone to be 'locked' to the service provider for a longer period of time." Our unlocking guide covers what that means.
Which fits you
Neither type is cheaper by rule. Compare the monthly total, fees, and terms on each carrier page, and see the current price at the carrier.
This is general information, not legal advice. Plan terms come from the carrier.
Sources: FCC, Cell Phone Unlocking; FCC, Understanding Your Telephone Bill.
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