Prepaid and postpaid phone plans are the most popular types of plans that wireless carriers offer. The key difference between these types of plans is when you have to pay the bill.
Prepaid plans require payment before your service begins. These kinds of plans are often extremely flexible, with varying data allotments and no credit check required. Postpaid plans allow you to pay for your service after you’ve used it. They often include extra perks like streaming services and phone installment plans, but they also come at much higher costs.
Wondering which one to choose? We generally recommend prepaid phone plans for customers looking to save money or who don’t need massive data allotments. Postpaid plans are best for customers who are heavy data users or need perks like phone installment plans.
We’ve got all the data you need to help you choose between prepaid and postpaid phone plans. We’ll also give you recommendations on the best prepaid and postpaid plans from top carriers so you can find one to fit your needs.
TL;DR - Prepaid vs. postpaid phone plans comparison
| Prepaid | Postpaid | |
|---|---|---|
| Cost per month | $5–$65 | $50–$100 |
| Data limits | 0GB–Unlimited | Unlimited |
| Common perks |
Mobile hotspot Autopay discounts |
Mobile hotspot Autopay discounts Multi-line discounts Streaming subscriptions International roaming Cloud storage Satellite coverage Loyalty rewards programs |
| Coverage | AT&T, Verizon, and T-Mobile networks | AT&T, Verizon, and T-Mobile networks |
| Flexibility to switch | Switch carriers whenever you want | Locked to one carrier if on a phone installment plan |
| Credit check | None | Required |
| Phone installment plans | Limited | Widely available |
| Financing | Generally not available | Available with a credit check |
What is a prepaid phone plan?
Prepaid cell phone plans are wireless plans that require an upfront payment for service. They don’t require a credit check and allow customers to switch whenever they want. Virtually all wireless carriers, including major carriers and mobile virtual network operators (MVNOs), offer prepaid phone plans. An MVNO is a smaller carrier that rents service from a major carrier’s network.
Some prepaid carriers—like Mint Mobile, US Mobile, and Visible—also allow customers to pay multiple months in advance. While these multi-month and annual plans require a larger upfront payment, customers still save by getting a lower monthly rate overall.
Remember that just because a prepaid plan is cheaper doesn’t mean it offers less quality. These plans have the same coverage as postpaid plans. You can also find excellent prepaid unlimited plans with massive data allotments that rival the top plans from major carriers.
Prepaid phone plan pros and cons
Pros:
- Lower prices
- Flexibility
- Same coverage as postpaid plans
- No credit check
Cons:
- Limited perks
- Limited phone installment plans
- Limited customer service
- Deprioritization
Prepaid phone plans generally offer lower prices and greater flexibility than postpaid plans. Because these plans don’t include contracts, you’re free to shop around for the lowest rate and switch plans as often as you like. Prepaid plans also don’t require a credit check since your payment is upfront, making them a great choice if you have bad or limited credit. Finally, prepaid plans offer the same coverage as postpaid plans, whether you’re shopping from an MVNO or a major carrier.
On the other hand, prepaid plans are often cheaper because they don’t include perks like streaming subscriptions or phone installment plans. Additionally, since most come from smaller carriers, you may not have easy access to customer service. Finally, though they share coverage maps with postpaid plans, many prepaid plans are subject to deprioritization. This is when carriers temporarily limit your data speeds during network congestion or if you’ve used up your allotment of premium high-speed data.
Best prepaid phone plans
The best prepaid plans are generally found at MVNOs. They offer unlimited data on the big networks for a fraction of the cost. Here are some of the best unlimited prepaid plans for customers on a budget.
One of our top picks is the Mint Mobile Unlimited plan. Running on T-Mobile’s network, it offers 40GB of priority data and a 10GB mobile hotspot starting at just $30/month. For average users, 40GB is plenty of data for your apps, especially if you use Wi-Fi at home and work.
Another excellent option is the Visible plan from Visible, running on Verizon’s network for $25/month. It offers unlimited 5G data, and you get an unlimited mobile hotspot with speeds capped at 5Mbps. Unlimited mobile hotspot is a rare perk and a great deal at this price.
Finally, US Mobile’s Unlimited Starter plan is a great option that offers access to all the major networks. Starting at $25/month, you can get unlimited high-speed data and a 20GB mobile hotspot when you select the Dark Star network (which is US Mobile’s name for AT&T).
|
US Mobile
Unlimited Starter Plan (Dark Star)
$25.00/mo
$20/mo. for 6 months; $25/mo. thereafter
|
|
Visible
$25 Visible Plan
$25.00/mo
Taxes & Fees included
|
|
Mint Mobile
Unlimited Data Plan
$25.00/mo
$75.00 upfront payment for 3 months (equals to $25.00/month). Intro pricing for new customers only.
|
What is a postpaid phone plan?
A postpaid phone plan is a wireless plan that requires payment at the end of your billing cycle. Any extra charges you incur, like international roaming or other add-ons, are typically also included on that bill. They generally include a lot of features, meaning postpaid plans are much more expensive than most prepaid plans. Plus, because you receive service before payment, they may also require a credit check.
Major carriers like AT&T, T-Mobile, and Verizon offer the most popular postpaid plans. These plans can include massive data allotments, perks like streaming subscriptions, and international coverage. You can also score excellent device benefits, like phone installment plans or early-upgrade programs. However, postpaid plans generally don’t offer much customization, and they can make it more difficult to switch carriers if you’re on an installment plan.
Postpaid phone plan pros and cons
Pros:
- Massive data allotments
- Perks
- Priority coverage
- Phone installment plans
- Customer service options
Cons:
- Higher prices
- Less flexibility
- Credit check usually required
- Difficult to switch carriers
Most postpaid phone plans offer massive allotments of high-speed data. They may also be packed with premium perks like streaming services and international roaming data. Since they’re usually purchased directly from a major carrier, they also offer the highest level of data priority, meaning other customers’ phones are deprioritized first to keep postpaid plans running faster. Finally, these plans usually offer better in-person customer service options and phone installment plans if you can’t afford to purchase a device in one payment.
The biggest drawback is that postpaid plans are much more expensive, with plans topping out as high as $100/line. They also require credit checks since you’re receiving your service before paying and may need device financing. Finally, if you purchase a phone on an installment plan while on a postpaid plan, you’ll be locked to that carrier until specific terms are met. This limitation can make it difficult to switch carriers if you find a better deal elsewhere.
Best postpaid phone plans
The best postpaid plans from AT&T, Verizon, and T-Mobile offer unlimited premium data and massive mobile hotspot allotments.
AT&T’s Unlimited Premium PL plan includes unlimited premium data, a 60GB mobile hotspot, and unlimited high-speed data in 20 Latin American countries for $85.99/month. It doesn’t include extra perks like streaming services.
Verizon’s Unlimited Ultimate starts at $90/month and includes unlimited premium data, unlimited mobile hotspot, and 15GB of high-speed roaming data when traveling around the world. Verizon also has a perk structure that allows you to pick customizable perks for $10/month for each. You can select services like the Disney streaming bundle, the Netflix and HBO Max bundle, Apple Music Family, and Google AI Pro.
T-Mobile’s Experience Beyond plan offers unlimited premium data and an unlimited mobile hotspot for $100/month. It’s also packed with more extra perks than any other postpaid plan, like Netflix, Apple TV+, Hulu, in-flight Wi-Fi on eligible airlines, T-Satellite coverage, and 15GB of high-speed roaming data in 215 countries around the world.
|
Verizon
Unlimited Ultimate
$85.00/mo
+ Taxes & Fees. Price includes AutoPay & Paperless discount.
+ $40 Upfront
|
|
T-Mobile
Experience Beyond
$100.00/mo
with Auto-Pay + Taxes and fees
|
Prepaid vs. Postpaid plans from Verizon, T-Mobile, and AT&T
Major carriers like Verizon, T-Mobile, and AT&T offer both postpaid and prepaid plans. Their prepaid options are generally more expensive than pricing found at MVNOs, but they’re still excellent options if you want a prepaid plan with in-person customer service and access to the major carrier’s device stores. You should also note that some prepaid plans from major carriers are only available as annual plans requiring 12 months of payment upfront.
You can also see how each major carrier’s prepaid and postpaid plan pricing compares below:
Verizon, T-Mobile, and AT&T: Prepaid vs. postpaid plans
| Carrier | Prepaid Plans | Postpaid Plans |
|---|---|---|
| Verizon |
Talk & Text - $35/mo. 15GB Plan - $45/mo. Unlimited - $60/mo. Unlimited Plus - $70/mo. |
Unlimited Welcome - $65/mo. Unlimited Plus - $80/mo. Unlimited Ultimate - $90/mo. |
| T-Mobile |
Connect by T-Mobile 5GB - $15/mo. Connect by T-Mobile 8GB - $25/mo. Connect by T-Mobile 12GB - $35/mo. Starter Monthly - $40/mo. Unlimited Monthly - $45/mo. Unlimited Plus Monthly - $60/mo. |
Essentials Saver - $50/mo. Essentials - $60/mo. Experience More - $85/mo. Experience Beyond - $100/mo. |
| AT&T |
Unlimited + 10GB hotspot - $20/mo. 5GB data - $30/mo. Unlimited Essentials - $40/mo. 15GB data - $40/mo. Unlimited MAX + 25GB hotspot - $55/mo. Unlimited MAX + 35GB hotspot - $65/mo. |
Value Plus VL - $50.99/mo. Unlimited Starter SL - $65.99/mo. Unlimited Extra EL - $75.99/mo. Unlimited Premium PL - $85.99/mo. |
How to pick the best phone plan for you
There are multiple factors to consider when determining if a prepaid or postpaid plan is right for you, but the two most important are your budget and how much mobile data you’ll need.
Remember that prepaid plans are generally cheaper, so if you need a budget phone plan, prepaid is your best choice. That said, you can still make a postpaid plan more affordable by joining a family plan or combining it with an internet bundle.
As for your mobile data, the average person only uses 10–15GB of data per month. If you use this amount, a prepaid unlimited plan will easily meet your needs. Power users who need more than 30GB per month should consider a postpaid unlimited plan. Find out how much data you use in a month with our data usage guide.
Here are some other factors customers should consider when choosing if prepaid or postpaid plans are best for their needs:
Consider a prepaid plan if:
- You use 30GB of data or less per month.
- You’re on a budget.
- You need a single-line plan.
- You don’t need perks or phone installment plans.
- You have a low credit score.
Consider a postpaid plan if:
- You use more than 30GB of data per month.
- You don’t mind spending extra for premium service.
- You can join a family plan.
- You want extra perks.
- You value in-person customer service.
- You need a phone installment plan.
- You can pass a credit check.
Prepaid vs. postpaid phone plans: FAQs
Max McCaskill
Sr. Staff Writer
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