When choosing a mobile plan, an important consideration is what type of plan to get. The majority or phone plans are prepaid or postpaid – but what does this mean and which should you choose?
In this useful guide, we compare the two types of plans to help you understand the key differences so you can choose the best plan for your needs. Let’s dive in!
What is the difference between prepaid and postpaid mobile plans?
There are two main types of mobile plan in Australia: prepaid and postpaid.
Prepaid mobile plans require you to pay for your mobile service upfront, before you use it. You can purchase prepaid plans in a variety of denominations, and your service will be suspended once you run out of credit.
Prepaid plans are a good option for people who want to control their spending or who don’t have a good credit history, as they do not usually require credit checks. They are also a good option for people who travel frequently, as you can avoid unexpected roaming charges by using a prepaid plan.
Postpaid mobile plans allow you to use your mobile service and pay for it at the end of the month. You will receive a bill from your mobile carrier at the end of each month, which will detail your usage and charges.
Postpaid plans are a good option for people who want the convenience of not having to worry about running out of credit and who want access to the latest features and services. Postpaid plans typically offer more features and benefits than prepaid plans, such as unlimited talk and text, data rollover and discounts on devices.
Which type of mobile plan is best for me?
Whether a prepaid or postpaid phone plan is better for you depends on your individual needs and preferences. Here is a comparison of the two types of plans to help you decide:
Prepaid phone plans
- No contract required
- More control over spending
- Good option for people with bad credit
Postpaid phone plans
- Typically more features and benefits, such as unlimited talk and text and discounts on devices
- No need to worry about running out of credit
- Convenient to pay for service at the end of the month
- You have to pay for service upfront
- Service may be suspended if you run out of credit
- May have more limited features and benefits compared to postpaid plans
- May require a contract
- Can be more expensive than prepaid plans, especially if you use a lot of data
- Early termination fees may apply if you cancel your contract early
If you are looking for a flexible and affordable phone plan, a prepaid plan may be a good option for you. If you want access to the latest features and services and don't mind paying a bit more, a postpaid plan may be a better choice.
Here are some additional things to consider when choosing between a prepaid and postpaid phone plan:
- How much data do you use? If you use a lot of data, a postpaid plan may be a better option for you, as postpaid plans typically offer more data than prepaid plans.
- Do you need unlimited talk and text? If you make and receive a lot of calls and texts, a postpaid plan with unlimited talk and text may be a good option for you.
- Do you travel frequently? If you travel frequently, a prepaid plan may be a better option for you, as prepaid plans can help you avoid unexpected roaming charges.
- What is your budget? Prepaid plans are typically more affordable than postpaid plans, but they may not offer as many features and benefits. Postpaid plans are typically more expensive than prepaid plans, but they offer more features and benefits.
Ultimately, the best way to decide which type of phone plan is right for you is to consider your individual needs and budget. Compare different plans from different providers to find the best plan for you.
What other mobile plans are available in Australia?
In addition to prepaid and postpaid mobile plans, there are a number of other mobile plan options available in Australia. Here’s a brief overview of some of the other mobile plan options available in Australia:
- Pay as you go plans: PAYG plans are an alternative type of mobile plan that allow you to pay for your mobile service as you use it. This can be a good option if you want to control your spending or don’t use your mobile phone very often. PAYG plans typically offer more flexibility than prepaid or postpaid plans, as you can top up your account with as much or as little credit as you need.
- SIM-only plans: SIM-only plans allow you to use your own mobile phone with a mobile carrier, which can be a good option if you already have a mobile phone and don’t need a new one. Available on both prepaid and postpaid plans, SIM-only plans typically offer more flexibility than plans that include a phone.
- Family plans: family plans allow you to share a mobile plan with your family members, which can be a great way to save money if you have multiple mobile phone users in your household. Family plans can offer a variety of features and benefits, such as unlimited talk and text, pooled and discounts on devices.
- Business plans: business plans are designed to meet the specific needs of businesses of all sizes. They typically offer features and benefits such as discounted rates for multiple lines, access to business support and priority customer service.
Frequently asked questions about prepaid and postpaid mobile plans
Helpful guides on mobile plans
Compare mobile plans with Savvy
Savvy is partnered with Econnex Comparison (CIMET Sales Pty Ltd, ABN 72 620 395 726) to provide readers with a variety of mobile phone plans to compare. We do not compare all retailers in the market, or all plans offered by all retailers. Savvy earns a commission from Econnex each time a customer buys a mobile phone plan via our website. We don’t arrange for products to be purchased directly, as all purchases are conducted via Econnex.
Any advice presented above is general in nature and doesn’t consider your personal or business objectives, needs or finances. It’s always important to consider whether advice is suitable for you before purchasing a mobile phone plan. For further information on the variety of mobile phone plans compared by Econnex, or how their business works, you can visit their website.