Prepaid vs. Contracts: Choosing the Best Mobile Plan

With competitors vying for the top position in telecommunications, new mobile offers come out every day. This leaves a customer quite perturbed about which plan would be most profitable – a long term contract or a prepaid plan?

A quick comparison between the two plans for your mobile usage will give you greater clarity on which way to go, to keep those calls running!


Imagine a rival service provider came up with a remarkable mobile plan. You’re desperate to take on the lucrative deal but cannot, simply because you are tied in a 12 month contract with your existing provider.

Long term commitments are not for mobile usage, so ditch the hassle by choosing prepaid.

Prepaid plans offer you a plethora of benefits:

Great value for money

Some of the best prepaid mobile deals commonly offer unlimited calls and messages, access to speedy 4G as well as hefty data allowances!

No hassle

Prepaid allows you to enjoy your mobile plan without any long term commitments. Moreover, you have the freedom to opt out any time you want. If not used within a given time frame, your credit will simply expire.


As the name suggests, you will need to buy credit prior to use so you can control just how much you spend.

Change handset at your convenience

With the speed at which new and advanced smartphone models are launching, our handsets become outdated within a few months. If you’re one to keep up with the changing trends, prepaid will allow you to upgrade to a better phone whenever you like!

Flexibility to switch network

If you want to switch to a different provider, you can simply discard your SIM. You can even evade the hassle of switching your phone number and reinforming your contacts if you have a prepaid mobile plan.

However, there is a downside to prepaid plans:

You need cash straight up

Whether buying a phone, or to avail your mobile service, you will need cash straight up. For those who don’t have that kind of cash at their disposal, prepaid might not be that appealing an offer.

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Contracts Plan

Imagine there is a new smartphone in the market. You really want to get your hands on it but find your budget a little tight. What would you do? With a contracts plan, usually lasting 12 to 24 months, you can acquire a phone without having to pay for it right there and then!

There is a plethora of benefits of a contracts plan:

You can pace out your cash  

Since you have to pay each month, you can get cash ready in advance, allowing for smooth financial planning.

Good deal

When you’re already paying a fixed sum every month, getting a handset with no or little extra charge is a lucrative deal!


You can avail warranty for your handset as long as your contract is valid.

However, there are a few downsides:

No flexibility

You’re stuck with the network as long as your contract is valid.

Same phone

You will have to make do with the existing handset till your contract expires.


Although the benefits of prepaid weigh out much more, choosing a mobile plan largely depends on your usage.   

If you’re sceptical about being tied up in a 12-24 month contract, without the flexibility to change networks, prepaid sounds like a better option. If you’re more inclined towards a deal with a phone, a contracts plan might be more feasible.