“What does it mean being referred to as a prepaid cell phone?”
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No Contract!!!
Its not a contract phone and it does not go against your credit...if you decided you dont like the service dont pay and your done no worries toward credit....
You pay for your service upfront. Example: Today is June 18, 2016. You pay today for 30 days of service. Your next pay will be 30 days later. 13 days of service starting on June 18. 17 days of service on July 1. Next payment is July 18, 2016. (Which will be day 1 again) Get it...got it...good! :) If you dont pay your service will be turned off.
You pa for the service up front.