Determining Which Service Plan is Right for You

When you are deciding which carrier to use, don't be lured in by offers that sound too good to be true. Often there are hidden charges, or better deals that you may miss in your haste. Study the plan thoroughly and consider the following things before you sign anything.

Promotions:

Everywhere you look you are going to see great deals and special offers. Like anything else you buy, you're probably going to see the best deal right after you sign with a different company. Often these deals include a "free" or reduced-cost phone in exchange for signing a lengthy contract. Usually by the end of the contract you've paid for the phone twice with hidden fees and higher per-minute rates.

Your plan may offer special features free-of-charge for a specified period, but what will these features cost when that period expires? Will you be able to cancel them without penalty?

By -the-Second Billing

Most cellular plans are billed by-the-minute. That is, if you make a call that lasts for one minute and one second, you'll be charged for a two-minute call. Would you pay for three gallons of gas if you pumped two gallons and one ounce? No you wouldn't, and you shouldn't have to pay for cell time that way either.

There are by-the-second billing plans available, where you'll only be charged for the actual amount of time that you spend on the phone. The by-the-second rate usually begins after the first minute; anything less than 60 seconds and you'll still pay for at least one minute.

You can save a lot of money this way if you make a lot of short local calls every month. If most of your calls are long conversations, or long distance, you won't see much of a saving.

Pre-Paid Wireless

Pre-paid wireless service has some advantages. You never have to worry about overtime charges because you buy minutes in advance, and you aren't locked in to a one- or two-year contract. However, you'll usually pay more per-minute than you would if you signed a contract, and you'll have to buy your own phone.

If you have bad credit or no credit, then pre-paid is likely the way you'll have to go. Some carriers may give you service with bad credit, but you'll have to pay a hefty deposit fee.