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Many individuals who want an economical way to enjoy cell phone use should investigate the benefits of no contract cell phones. Unlike a cell phone plan that requires signing a contract for services for a period of at least one to two years, a no contract cell phone offers a pay as you go plan.

No contract cell phones do not require that the applicant have a valid credit card. There are no contracts to sign obligating you to an extended period of payment and there are no monthly required minimum fees. No contract cell phones can be purchased at many major retailers and then the individual purchases phone cards from the carrier associated with the particular phone purchased.

In order to keep an account valid for a no contract cell phone, the user must purchase an additional $20 in phone card services at least once every three months. There is a set charge, usually around 25 cents per minute, for the amount of minutes used that is deducted from the balance on the card. Although minutes on a contract cell phone usually do not roll over if not used up with a month, any minutes on a no contract phone card not used within 30 days don’t disappear which is a nice advantage of no contract cell phones.

No contract cell phones are very attractive to teenagers who don’t yet have a credit card account, people with minimal cell phone needs and the elderly who want the convenience of a cell phone without the continuous monthly expense associated with contract cell phone coverage.

There are certain limitations, however, that should be recognized before purchasing no contract cell phones. Without a contract, the user is responsible for repair of the phone should there be trouble or breakage. No free weekend or evening minutes or other promotional minutes are offered with no contract cell phones because by nature this type of cell phone coverage is meant to be both bare-bones and no-frills.

It’s important to check out the offers made by no contract cell phone carriers before commiting to purchase one to get the best deal on the phone and also to see if the carrier offers an incentive of free minutes with a purchase. No contract cell phones, however, are among the most economical way for individuals with no credit card to enjoy cell phone usage and to stay within their monthly budget without commiting to one or two years of expensive ongoing charges for many features and minutes they really don’t need.

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