Nobody likes signing contracts, especially when it locks you into a one or two year cell phone service commitment. Plus, what if you’re credit is less than perfect? There is an alternative: a prepaid “pay-as-you-go” cell phone. This service offers the convenience of a regular cell phone, but without the commitment of a long-term contract.

Prepaid cell phones are perfect for people who don’t use their cell phones that often, prefer to limit their usage or for those that want a phone only for emergencies. They are also ideal for parents who want to control their kids’ cell phone usage. They are also the best alternative for consumers that don’t want to be tied to a certain plan or carrier, since the pay-as-you-go option allows the user to control how much they pay and when they pay for it.

What’s great about the prepaid service is that there is no monthly bill and doesn’t require a credit check. Most of the major cell phone companies offer the pay as you go plans, including Virgin Mobile, AT&T Wireless, T-Mobile, Cingular and TracFone.

According to PCWorld.com, there are a few things to be aware of when buying a prepaid cell phone. Coverage may be limited, so make sure you check the coverage map at each company’s site or call the vendor before you sign up. Also, prepaid services expire. If you don’t use your minutes within a specified period, you lose them. The only way to save your minutes and roll them over to the next cycle is by buying additional minutes. Also, per-minute charges on prepaid phones are pricier than fees for other plans. So if you plan on chatting a lot, don’t sign up for a prepaid plan.

So, you’ve decided to buy a prepaid cell phone. What will your purchase include? Prepaid plans typically include local and long-distance calls, roaming, international dialing, voice mail, caller ID, call waiting, and three-way calling. Some service providers may also provide additional perks such as call forwarding and line blocking. In addition to voice services, some carriers allow you to send and receive text messages for a fee.

One more thing: If you want a fancy phone, prepaid services are not for you. PCWorld.com says the selection of handsets ranges from super-basic to moderately featured.

How easy is it to get a prepaid cell phone? Pretty easy. You can pick up a prepaid cell phone at almost any Wal-mart or Best Buy, for example. You’ll need to buy a handset, pay an activation fee of about $25-35, and purchase a phone card with a specified number of minutes. The cost for the card depends on the number of minutes you choose, but typically ranges between $10 and $100, according to PCWorld.com. Like many phone services, the more prepaid minutes you buy, the lower the per-minute charge.

What do you do when you run out of minutes? With all of these providers, when you run out of minutes, you buy refills at their retail shops or at nationwide retail chains such as Circle K, Best Buy, Circuit City, K-Mart, Target, Wal-mart and Walgreens. PCWorld.com says many carriers provide a way for you to check the number of remaining minutes on your phone by either displaying the airtime balance on the handset, or through another means like text message alerts.

PCWorld.com says most carriers’ minutes have an expiration date--usually 60 or 90 days after you buy them. And the cheaper the prepaid plan, the shorter the active period is. If you don’t use your minutes within the specified period, you lose them. If your account is inactive beyond the expiration date, you’ll likely lose your phone number, too. The only way to save your unused minutes and to roll them over to the following period is by adding minutes before the current ones expire.

Finally, just remember: Even if you use your cell phone frequently, your cost-per-minute charges will still be higher than a standard cell phone.