Cell Phones- Prepaid or Contract?

I desperately need a cell phone, I am going to purchase one from Verison because it gives the best service out here in the boondocks. I had planned on buying a smartphone with the contract agreement until I found out I had to pony-up some more dough since I have no credit.
So my question is should I just fork over more cash (since the V-lady said I would eventually get it back) or go ahead and buy one of their prepaid phones?