Pre-Paid (or Pay-As-You-Go) phones provide a set amount of calling minutes that are used as needed. Most other carrier services require a one- or two-year service plan that provides an allowance of included calling minutes every month, with approved credit. Pre-paid plans are ideal for people who have an infrequent need for a cell phone, but like the convenience. Pre-Paid phones are also good for people with credit problems or who prefer not to get into a long-term commitment. Users pay for airtime in advance and these calling minutes are often much more expensive than those bought under contract. Also, there is often a time limit to how long pre-paid minutes are valid, as described on the Pre-Paid plan.
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