Arguably the biggest benefit of a SIM-only prepaid plan is that it is generally more affordable than your standard mobile plan as you are not paying off the cost of the device. If a customer wanted to purchase a new iPhone through a provider, they would have to repay the cost of the device and pay for the mobile services, typically over 12-24 months on a locked-in contact.
SIM-only prepaid plans save customers money by only charging them for the mobile services they use, such as 50GB for $55 a month on a SIM-only prepaid plan versus 50GB and device repayments at $150 a month on a 12-month mobile plan.
SIM-only prepaid plans also offer greater flexibility to their customers as they are not locked into a lengthy contract. If you find a more competitive plan out there, you can simply just make the switch. You may want to wait for your prepaid period to end to make the most of your money, but there is generally no contractual obligation to do so.
Some providers, also offer SIM-only plan customers the option to roll data that you do not use over to your next billing period. This may be helpful for customers to ensure they’re getting the best value for their dollar by not wasting the data they pay for. Providers like Telstra may also allow customers to data share across multiple services on the same account. This can be an ideal feature for families or larger households.
Generally speaking, phone providers will perform a credit check in Australia when you want to sign a contract for a new device. This helps the provider to ensure you are not a risky customer and are likely to repay the device.
SIM-only prepaid plans generally do not require credit checks for customers, making it an ideal option for young Australians with little or no credit history, or those with poor credit scores. Further, if the unexpected happens such as a job loss, you don’t run the risk of hurting your credit score if you cannot make repayments.
The provider may still request an ID check, meaning you may be requested to provide your name, date of birth and home/business address.
