Prepaid Cards Vs Postpaid Plans: Which is More Practical?

Which offers more savings between prepaid cards and postpaid plans?

Balancing your budget surely involves your cellphone bill, whether using postpaid vs prepaid SIM cards.
It is rare to find a person in the metro who doesn’t use a phone, especially since 60 million Filipinos are internet users. Some even have two mobile phones. It is no wonder we are popular as the fastest-growing smartphone market in an International Data Corporation (IDC) survey.

Every day I ride the MRT and jeepneys, I see people holding their phones, scrolling up and down. Others seem to talk to themselves loudly. Until you see their Bluetooth headset and realize they are on a call. I have seen people suddenly blurted uncontrollable laughter as they watched funny videos on YouTube. And of course, there will be gamers everywhere playing Mobile Legends, Clash of clans, or Everwing.

Bottom line: We are active users of telecom services which are eating away a chunk of our budget.

How much are you spending a month? Is it your best financial option?

Credit: https://www.istockphoto.com/photo/young-woman-using-her-smartphone-gm507626840-84819265

What is Prepaid?

Prepaid indicates that you have to pay first for the service before you can use it. Usually, we already have a handset before we purchase a SIM card. Unlike in other countries, you can legally buy SIM cards anywhere you go.

Most of us even have phones which have dual SIM slots. This gives us the freedom to have two active prepaid cards simultaneously. Just buy prepaid loads to use services equivalent to their amount.

What is Postpaid Plan?

Postpaid is the term used within the context. You pay for the service after you have used it. Usually, it comes with a plan inclusive of various limited services such as a certain amount of data, minutes of calls, and the number of texts.

This involves a legal contract, and you will need valid government IDs, proof of billing, and proof of income to avail of it.

What is Better Postpaid or Prepaid?

Ever thought about which one you should get between the two? We compared postpaid vs prepaid Philippines based on the following categories. Check it out and see which of the two is the most practical for you. 

Round 1: Duration

Ever tried registering for a promo with prepaid using mobile load? Depending on the description, it can last a day, a week, or a month. Make sure to take note of the expiration. You will be charged regular fees if you continue to use the service beyond the expiration date and time.

Let’s say you registered: GOTSCOMBODD70 on your Globe SIM Card. You get 1GB of data and unlimited SMS to all networks for a week. My friend uses this promo, but it eats up her regular load whenever she forgets to turn off her data after its expiration.

On the other hand, a postpaid sim card is more like a loan. You can use or buy services now, then pay at a later date. With this round, I think it is for postpaid. I use the postpaid plan for data in my pocket Wi-Fi. Every day I travel across Metro Manila, but I have no time to load up frequently. So my best option is just to pay up once a month.

If you are too busy to pay on or before the due date, you can pay it through bank account automation or online banking.

Round 2: Invoice

When buying a prepaid load, you just go to a loading station, key in your number, and choose your promo code. Will it be All Txt 10, All Out Surf 50, or just a regular load? Pay up, and you are good to go. There will be no bill.
With postpaid, you will get a bill each month. You can use it as proof of billing, whether printed on paper or sent through email. Many financial institutions accept bills from telecoms as valid proof of billing.

It is easy to apply for a postpaid account. If your eye to getting a loan from any registered money lenders and banks, this is a good start. Obviously, this round is for postpaid.

Round 3: Plans

Prepaid has a fixed registered plan charged in real-time. After you register, the applicable amount is deducted from your regular load. The promo lasts until it expires or you have used up the services it offers. Let’s say you registered for 2GB of data usable for a week. The regular load will be charged if you use it up, regardless of the remaining days.

This can bring a real-time impact on your wallet. In case you used up your load you can’t use its services anymore. Of course, you can get a load through a loan. Let’s say you availed a Php 3 load. You have to pay it Php 4 on the next loading up.

Postpaid services are flexible. You will be charged a premium, but you can still use some services even if you have gone beyond its limit. You will not feel much impact on your finances until your bill comes.

I think this round is for prepaid. Since prepaid is fixed, you can easily track your expenses. If you have a fixed budgeted amount for your load, then you can just get a promo that fits it.

Failure to monitor your use of postpaid services can lead to bill shock.

Round 4: Changeability

Change your prepaid SIM network and plans anytime you want. You can buy SIM cards in convenience stores or almost on any street. You can even purchase at malls’ entrances. If you want to change your number or you have lost the old one, then get a new card anytime. Also, changing a network provider is easy. Just insert your new SIM into your phone and you are good to go.

The postpaid plan has a lock-in period. If you want to change your number, you need to contact the service provider. In addition, you can’t change your network provider throughout the lock-in period, which is six months to two years. If you are unsatisfied with the services and you want to cut the contract, you will be penalized.

The winner for this round is prepaid cards for their flexibility.

Round 5: Phones

Prepaid does not have plans with options to buy a smartphone. This is fine if you already have a phone and you want to keep it. Postpaid offers plans which are tied up with a brand-new smartphone. Also, this is great since purchasing a smartphone through installments makes it more affordable. The last round is a tie.

RELATED ARTICLE: 10 Must-Try Apps to Make Your Smartphones Smarter

Should it be prepaid cards or postpaid plans?

Prepaid and postpaid has its advantages and limitations. In the end, what you have to ask yourself is your purpose.

Are you just getting a postpaid plan because your workmates all have it? Or maybe you want to have easy access to proof of billing for other legal transactions?

If you use a lot of services for personal needs or business purposes, go for a postpaid connection. Otherwise, opt for a prepaid connection.

Get your bills paid or prepaid cards loaded with Cash Mart. It offers cash loans online that prevent your phone from running out of means to communicate with others.