# Prepaid or Contract: Which Should You Pick in Germany? (2026) > Prepaid vs contract mobile plans in Germany: SCHUFA, SEPA direct debit, the 28-day billing cycle, price examples, and which model fits newcomers and residents. By Jules de Bruin ยท URL: https://www.guide-germany.com/telecom/prepaid-vs-postpaid **Prepaid is the right first choice for almost anyone new to Germany**, because it is the only option that needs no German address, no German bank account and [no SCHUFA record](/finance/open-bank-account). It is also cheaper: EUR 8.99 for 25 GB against EUR 19.99 for 15 GB on the cheapest network-operator contract. Both models require identity verification. The catch on prepaid is the **28-day cycle**, which bills 13 times a year. ## Which Is Better, Prepaid or a Contract? ### Choose prepaid if... - You have no German address or SEPA direct debit yet. - You have no SCHUFA record, which is normal in your first months. - You want no minimum term and the lowest price per GB. ### Choose a contract if... - You have a stable German address and a SEPA mandate. - You want the higher data tiers, up to unlimited. - You want a calendar-month bill and accept a 24-month term. ## How Do Prepaid and Contract Compare? | Factor | Prepaid | Contract | | --- | --- | --- | | Minimum term | None, or monthly cancellable | Usually 24 months | | German address | Not required | Required | | German bank account | Not required | SEPA direct debit required | | Credit check | None | SCHUFA check | | ID verification | Required | Required | | Billing cycle | Often 28 days, 13 payments a year | Calendar month | | Price example | EUR 8.99 for 25 GB per 28-day cycle | EUR 19.99 for 15 GB per month (O2 Mobile S) | | Setup fees | SIM fee EUR 0 to EUR 9.99, usually offset by starting credit | Telekom charges a EUR 39.95 connection fee | | EU roaming | Included | Included | | Best for | Newcomers, students, short stays | Settled residents wanting high data tiers | ## What Is the 28-Day Cycle Trap? Most German prepaid tariffs renew every 28 days rather than on the calendar month. Thirteen of those cycles fit into a year, so a tariff sold as EUR 8.99 is really about EUR 9.74 a month, and one sold as EUR 9.95 costs near EUR 129 a year. That gap is large enough to flip a comparison, which is why every price on this site is labelled with its cycle. Two no-contract tariffs avoid it entirely: **fraenk**, EUR 10 for 25 GB on the Telekom network, and **SIMon mobile**, EUR 9.99 for 50 GB on Vodafone. Both are calendar-month subscriptions and both are monthly cancellable, so you get [contract-style billing](/telecom/mobile-plans) without a 24-month commitment. ## Who Should Choose Prepaid or a Contract? Newcomers, students and short-stay visitors should start with prepaid, because a contract is not realistically available before [the address registration](/moving/address-registration) and SCHUFA record exist. Long-term residents who want 100 GB or more, or an unlimited tariff, will find those tiers on contract: Telekom MagentaMobil runs from EUR 29.95 for 20 GB up to EUR 84.95 unlimited, Vodafone Mobil from EUR 29.99 for 25 GB up to EUR 79.99 unlimited, and 1&1 sells 150 GB for EUR 19.99 online only. If you are under 28, check [the youth tariffs](/telecom/student-sim-cards) before signing an adult one: Telekom MagentaMobil M Young is EUR 24.95 for 100 GB in the first 24 months, Vodafone Mobil Young M is EUR 27.99 for 200 GB, and O2 Mobile S young is EUR 14.99 for 15 GB up to your 29th birthday. The gate is date of birth, not enrolment, so no student proof is needed. ## Related Guides [### Best SIM Cards Top prepaid and monthly-cancellable plans.](/telecom/sim)[### Mobile Plans Guide How to pick a plan in Germany.](/telecom/mobile-plans)[### SIM Cards for Newcomers Plans that work before you have an address.](/telecom/sim/best-for-new-arrivals)[### Home Internet DSL, fibre, cable, and fixed wireless.](/telecom/home-internet) ## Frequently Asked Questions ### Is prepaid cheaper than a contract in Germany? For most individual users, yes. The value-brand floor is EUR 8.99 for 25 GB with unlimited calls and SMS, against EUR 19.99 for 15 GB on O2 Mobile S, the cheapest contract entry from a network operator. Read the cycle before comparing: EUR 8.99 renews every 28 days, which is 13 payments a year, about EUR 9.74 a month. ### Can a newcomer get a contract tariff? Usually not in the first weeks. Contract tariffs from Telekom, Vodafone, O2 and 1&1 need a German address, a SEPA direct debit and a SCHUFA credit check. Prepaid needs none of those, only identity verification. ### Do I need ID either way? Yes. Identity verification is mandatory on every German SIM, prepaid included. VideoIdent works with any passport, 24/7, and activation takes minutes to hours afterwards. Even SIMs from a vending machine have to be verified online before they work. ### When does a contract make sense? When you already have a German address and a SEPA mandate and want a calendar-month bill or the higher data tiers, for example Telekom MagentaMobil L at EUR 59.95 for 100 GB or MagentaMobil XL at EUR 84.95 unlimited. If you only want calendar-month billing, fraenk and SIMon mobile give you that without a 24-month term. --- Source: https://www.guide-germany.com/telecom/prepaid-vs-postpaid Last updated: n/a Format: LLM-readable Markdown twin (.md) of the canonical HTML page.