The major difference between a prepaid and a postpaid plan is billing. Postpaid plans come with a monthly bill, while prepaid plans are paid upfront. Generally, prepaid plans are cheaper because they are often bare-bones plans with no extra features. If you’re on a budget and don’t need niche features, you’re better off with a prepaid plan. Postpaid plans are ideal if you want the convenience of not worrying that you’ll run out of credits but always monitoring your usage.