Prepaid vs. Postpaid Plans

Difference between Prepaid vs Postpaid Plans

You can understand the difference between prepaid and postpaid plans by their name itself. The biggest difference between the two is that in pre-paid plans you pay before you use a service and in post paid you pay after you have used a service. You can find these options in case of mobile phones, Dish TV subscription, Internet services and some more similar services.

In case of prepaid services you know your limit to use a service and you can use it only till the limit of your paid amount allows you to. So you do not worry about the surprise bills that you may receive at the end of a fixed period, usually a month. The rates, at which a particular service is charged are lucrative in post paid plans because the encourage you to use the service more. This is why prepaid is good for the people who do not want to spend too much and want to limit their usage.

Prepaid services are usually time bound so that you do not keep on rolling the amount in your account for very long period. You have the liberty to discontinue the use of a service in case of prepaid plans and if you do not recharge your subscription for a particular time then you may not be able to use a service. You regularly need to recharge your subscription.

Post paid services are good for the people who need to use a particular service too often or who have more requirements. Such customers can get good deals in the post paid plans. You get a credit limit in these plans and this is why before you are given a post paid plan your credit history is evaluated to see if you would pay on time and regularly or not.

Your address and identity are also verified. You get bills for your usage and this is a convenient way to pay especially if you are too busy or when you are travelling. You can get post paid services with or without entering into a contract. A contract does not allow you to change your service provider or terminate your services within the contract period and if you do so then you need to pay penalty for that.

In case of postpaid mobile services you can still keep the handset after the contract period is over. Contractual post paid plans may be a disadvantage in the cases when you find a better service provider or if you get the same services at better rates. You cannot change your service provider in this case and continue till your contract ends.

Here is the list of some main differences between post paid and prepaid plans:

  1. You pay before you use a service in prepaid plans while you use a service first and then pay later in post paid plans.
  2. Prepaid is good for people with limited money to spend on a service like the teenagers and students while postpaid services are good for the people who can mange monthly payments without any difficulty.
  3. You can terminate prepaid services as and when you want while you cannot do so in case of postpaid services.
  4. No credit check or verification is done for prepaid services while all these procedures are mandatory in case of post paid services.
  5. You can get bills and details of your usage in post paid services while you do not get bills in case of prepaid services.