Can I use a pre-paid visa for small recurring fees?

[weRN2deep]

I don't know if this is a no-no - but after reading that we should stop putting anything on our existing CCs for 90 days prior to file, I was wondering about a few small charges that I put on cards (currently I reimburse the day after it goes on card w online banking).

In particular netflix (1 movie at a time cheap plan), stamps.com (4.99/mo), and godaddy hosting (for hubby's bizz, $3.99/mo) and $12 to tivo. Maybe these are luxuries (?) but since the crackdown it is our only form of entertainment anymore. They total $25/mo.

Can I buy a pre-paid visa and use that for these things? I don't know if this is against the rules...

Do any of you do this?

[lrprn]

I don't know if this is a no-no - but after reading that we should stop putting anything on our existing CCs for 90 days prior to file, I was wondering about a few small charges that I put on cards (currently I reimburse the day after it goes on card w online banking).

If you are reimbursing the day after the charge, then you aren't gathering up new debt with no intent of paying. You are paying the new charges. Therefore the creditor has no grounds to cause issues. Still, you need to stop charging so that you can get used to living within what you make and not use credit to fill in any gaps.

However, a better option would be to get a debit card from your bank and use that instead. Then there's no conflict and no possibility of issues because you are using your own funds to purchase these small entertainment expenses.

Can I buy a pre-paid visa and use that for these things? I don't know if this is against the rules...

Again, I think a debit card is better in this situation. It also prepares you for life after bankruptcy when you must live within your means without having credit to fall back on.

[weRN2deep]

If you are reimbursing the day after the charge, then you aren't gathering up new debt with no intent of paying. You are paying the new charges. Therefore the creditor has no grounds to cause issues. Still, you need to stop charging so that you can get used to living within what you make and not use credit to fill in any gaps.

However, a better option would be to get a debit card from your bank and use that instead. Then there's no conflict and no possibility of issues because you are using your own funds to purchase these small entertainment expenses.

Again, I think a debit card is better in this situation. It also prepares you for life after bankruptcy when you must live within your means without having credit to fall back on.

You are right, I guess it just always causes me concern to use a debit card on an internet transaction (like having it stored with netflix)... I am sure it isn't risky like buying something from an unknown source.

thanks for the advice

[lrprn]

I guess it just always causes me concern to use a debit card on an internet transaction (like having it stored with netflix)... I am sure it isn't risky like buying something from an unknown source.

As long as you are on secured transaction websites the risk is very low. However, if you really want to be 100% safe using a debit card for online purchases, open a second account that is used solely for internet transactions and get a debit card that's tied only to that account.

How can you tell if the page on a website where you are entering in credit or debit card information is secured? If your browser is Internet Explorer, look for the gold lock (where it's located on the screen depends on your version of IE). In other browsers, there are secure indicators as well. No indicator? Then don't do business with that online company, period.

Seeing the secure indicator is not a 100% guarantee, but it's darned close! Also doing business with established online companies like NetFlix has very little risk as well.

[music12]

a pre-paid visa is not a credit card and not a creditor. so, imo, you can use it with no problem. it won't even go on your creditor list, because it's not a creditor.

[whipster1]

Yep a prepaid visa is fine...no debt being created, you are only using money from an account.

Oh, and I had to buy a tank of gas on a credit card the day I filed...I figured if the company cries foul I will pay the 42.50 I needed to charge that day...

[IBroke]

Again, I think a debit card is better in this situation. It also prepares you for life after bankruptcy when you must live within your means without having credit to fall back on.

lrprn,

What's the difference between a prepaid Visa and a debit-card? To me, there is none..

[lrprn]

lrprn, What's the difference between a prepaid Visa and a debit-card? To me, there is none..

There are similarities and differences between debit and secured credit cards.

The primary question to ask when trying to decide between the two is what is the purpose of the card?

If you want to use the card and have the flexibility of using an already existing checking or savings account, virtual banking access, and bill pay, then a debit card is what you need. Since the OP wanted to use the card to pay existing and new online payments, that's why I recommended a debit card.

If you are trying to establish credit or rebuild your credit, then opening a secured credit card is best because it will report to the credit bureaus (a debit card will not). A secured credit card requires a security deposit that is placed in a savings account - how much depends on the card you choose and the bank or credit union that has the account. This amount acts as collateral for your line of credit. Secured credit cards are easier to obtain than unsecured credit cards and are helpful for borrowers who want to improve or build their credit standing.

So the bottom line - which card you choose depends on what you want the card to do.

[IBroke]

There are similarities and differences between debit and secured credit cards.

Ah, if we are talking about a secured CC, I certainly know the difference. I was asking because I assumed we were talking about a prepaid debit-card since the OP never mentioned "secured CC". Usually, you don't call obtaining a secured CC "purchasing" a card.

I have a "prepaid Visa" which I actually purchased at Wal-Mart and it IS a debit-card. I can only spend what I put on it before.

[music12]

right, a pre-paid visa card is not the same as a secured cc.

[Amy26]

And honestly, if people want to get our credit card numbers, checking account numbers, etc... it is not hard. Think of all the people that we give our socials to... our checks... when you swipe your card at a store... if someone really wants your info... it wouldn't be too hard to aquire. So, I wouldn't worry about using a debit card for your online purchases.

Also, you are more protected with using the bank debit card than a pre paid card (in my opinion) because if the merchant over charges you, takes 2 charges at once or something then do you have any recourse for that pre paid card? I've never had one, so I'm not sure how they work but if you had to dispute a charge, does it work just like a regular credit card or bank debit card?

[music12]

amy is making lots of sense! a mistake with a pre-paid card could lead to a big black hole with no reccourse to get your money back.

[IBroke]

amy is making lots of sense! a mistake with a pre-paid card could lead to a big black hole with no reccourse to get your money back.

Nope, that's incorrect - at least in regard to the card I'm using:

"It’s Safer than Cash
The Visa Zero Liability Policy protects you from unauthorized purchases, fraud and theft if your Walmart MoneyCard is ever lost or stolen."

https://www.walmartmoneycard.com/Acc.../Products.aspx

[IBroke]

I've never had one, so I'm not sure how they work but if you had to dispute a charge, does it work just like a regular credit card or bank debit card?

Yes, it does. A Visa is a Visa - no matter who issued it. The prepaid card is issued by a bank as well...

Oh, and BTW: When you're on a tight budget and are planning on using your BANK-ISSUED card out of state, you might end up with an overdrawn account because you CAN actually spend more than you have available. I learned that the hard way and had to pay hefty fees because I thought I could only spend what was available...

[weRN2deep]

I was asking about the prepaid because a) I thought we weren't supposed to use our credit prior to filing and b) I thought maybe there were things we shouldn't be having a trail of that might be considered 'luxury' or things you don't really need like netflix and tivo. (I personally think I NEED my tivo, but I didn't think the courts would think I did). I'm just learning all this stuff. I will def try for a secured card after this is all behind me to start to build again.