Pay As You Go Mobile Phones : Learn

How do pay as you go phones work ?
With pay as you go phones you pay in advance for air time on your mobile phone. You pay by purchasing vouchers or through your credit/debit card. The main advantage is that you can use your mobile phone without having to sign up to a 12 month contract.

How do you decide if a pay as you go phone is suitable for you ?
If you plan to use the phone for short or infrequent calls or you expect to use the phone more for receiving than making calls then pay as you go could be the best option for you. If you are under 18 and not eligible for a pay monthly contract phone or if you feel you would fail a credit check then a pay as you go phone would be your only alternative. This kind of phone is ideal if you want to control your spending, or are giving the phone to your child and want to avoid overuse and large bills.

Advantages:
no credit check;
no contract;
no connection charge;
no monthly bills;
better control over your spending;
convenience of paying for calls by vouchers or credit/debit card;
flexibility to change from pay as you go to a pay monthly contract tariff

Disadvantages:
call rates are generally higher than with contract tariffs;
some vouchers are only valid for a limited time period;
pay as you go tariffs and coverage can vary from network to network;
roaming abroad may not be available and international call tariffs can be expensive

Summary:
Pay as you go means you can use a mobile phone without signing up to a contract or paying bills and rental. You pay for calls in advance using vouchers or your credit/debit card. If you don't need to make many calls and just want a phone so you can be contacted or in case of emergencies, pay as you go may well be the most economic and convenient choice.