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With a prepaid phone and plan structure, you pay the mobile service provider upfront before gaining access to its mobile phone network, rather than getting monthly bills. Overall, having a prepaid phone is very convenient, but it can be a different experience if you've previously only had post-paid phone service from a major cell provider like AT&T or Verizon.

Prepaid service differs from postpaid service in that:

· There are no contracts and no credit checks

· You can discontinue service at any time without facing termination fees

· You can control costs by purchasing minutes on a pay-as-you-go basis

Be aware, though, there is a use-it-or-lose-it caveat about minutes. With many prepaid services, once you activate a card, you must use up your allotted minutes in a designated time frame, which can vary from 1 month to 90 days, depending on the provider. If you have any minutes left over once the time window has elapsed, you run the risk of losing those minutes. That's why it's important to know roughly how much you are going to use your phone.

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12y ago

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