IPhone with Pre-Paid Sim Card plan?

My whole life I've had an LG Rumor type phone with us cellular. My parents have cheap flip phones. My parents think its bogus to pay a lot for data plans so we don't get them. But my Aunt is sending me an iPhone 4 that I really really want to be able to use. My moms friend moved from Iraq and she uses pre-paid sim-card plans (Smart Mobile).So my mom says she'll let me do that. But we don't know anything about how that works. My Aunts iPhone is a 4 and it was with AT&T, but she got a 5.So is Smart Mobile worth it? I want unlimited everything.

BTW I don't know if the phone is unlocked. So would I have to get it unlocked?

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