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No Contract Cell Phone Plans. Prepaid, or no-contract cell phone plans do not require a monthly contract. Instead, users prepay to have a certain amount of minutes of access per month. These minutes are available for use until they are used or until they expire, at which time more minutes can then be purchased or added.

Prepaid Cell Phone Plans. Prepaid, or no-contract cell phone plans do not require a monthly contract. Instead, users prepay to have a certain amount of minutes of access per month. These minutes are available for use until they are used or until they expire, at which time more minutes can then be purchased or added.

Of the four major carriers, Sprint is the most affordable option. A 6GB plan will run you $70 per month with Sprint but $80 with AT&T. And Sprint's Unlimited Freedom data plan is just $65 per month, while T-Mobile's is $75 and Verizon's is $85 for a single line

Having a contract phone means that you pay a single monthly fee for a fixed period of time. Most mobile phone contracts are set at either 12 or 24 months and provide mobile customers with a handset and a monthly allowance of calls, data and texts.

No contract phones are the prepaid phones that you usually purchase from your operator. The phone can either be locked or unlocked. Unlocked phones are the generic phones. They are not factory locked and can be used with another SIM card from another operator.

Some prepaid cell phone companies allow users to buy a certain number of minutes for a specific price while others charge a fee for each minute that is used. Many users switch to prepaid cell phones, or pay-as-you-go phones, in order to avoid the penalty fees associated with most contract plans.