Prepaid phones are availed by purchasing the credit in advance of the service use. This credit is used to pay for mobile phone services when they are accessed or consumed. In case if there would be no credit available the service will be denied from the mobile phone network. In this case, subscribers can top up their credit through various available and acceptable modes. Prepaid phone service is generally known as ‘pay-as-you-go’ service.

Prepaid phone plans are usually cost effective. Users can have a better control on the usage of the service, as they will be notified of the cost of use after every usage. It would be easier for the user to control debt by limiting the usage. These plans would have validity and would last till the service is completely consumed or else if it is expired.

Best prepaid phones usually do not charge an early termination fee, if a user wishes to terminate the service before the actual validity. Thus it would be easy for the user to switch to another service at no additional cost.

This service is best suited for the people that find it difficult to get a contract due to unavailability of required documentation as well. Usually, for initializing a prepaid phone service users may require submitting a valid id card and there will not be any requirement of subsequent financial documents as they will be paying in advance for the service. Whenever their credit gets over, or the validity gets over the mobile service terminates the service and thus service providers would be safe from billing other than available credit.

Prepaid phones are also helpful for travelers and students that belong to a different place. They can easily get a prepaid phone wherever they are completing formalities that are quite easy.

Similarly, people that wish to stay connected with their children staying away from home for education or work can go for prepaid phone plans to have a cost effective mode of communication.

If free incoming calls would be available according to local law or the service provider, even prepaid phones that have finished with available credit however still are valid can receive calls easily.