Question:

Would it be wise to get a prepaid debit card while in collections?

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i'm currently in collections and i need a place to keep my money, I can't make a bank account either because i'm in chexsystems as well. would getting a prepaid debit card be the best solution for me?

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  1. It might.  However, just as long as collections do not find out your card number.   Myself,  I would get to prepaid card-different companies if possible.    

    The other person may be right about merchants not taking prepaid cards,  however that it technically a violation of MasterCard and Visa policy if the merchant takes the Mastercard/Visa signature debit cards.

    There is a way around this.  Some prepaid cards lets you put your name on the card.   Then it looks like a standard debit card.  Most places do not know the names of the prepaid card companies.

    There is monthly and other fees for theses cards.  

    Just a tip,  since your credit is already ruined you might want file chapter 13 bankruptcy.  Just with a bankruptcy attorney.


  2. You could but, you have ask the specific company. What their policies are.

    If your are talking about getting prepaid (visa/master card) gift cards. Personally I don't think that's a good strategy even for the short term.

    Because if you lose any (demagnetized or damaged) that's a lump sump pretty much can't replace right away. Any many businesses don't take them. Too much fraud supposedly. And the problem I had, a bunch of partial balances were hard to use & track at times. Like paying with pennies.

    There are a couple companies I've used because my credit is so bad I couldn't get a bank account to save my life.

    You can get a debit card M/C or Visa. I do a partial direct deposit. and get the rest in a check from work.

    They claim 100% approval and no credit check Just verify your ID, so they know your aren't a terrorist. I'm the only one I know who has used this, so I can't verify the 100% thing. All you can do is look at it and ask. Right?

    If it works for you, let me know so I can tell a few people I know who are in your boat.

  3. I don't think that being in debt will keep you from having a checking account.   They just wont give you any checks or visa cards,   My bank first federal did that to me because I wrote a bad check that I didn't know about but they still gave me a debit card that could only be used at my local bank. I'd be careful with those prepaid visa card I hear some of them are not actual banks that run them and that would mean there not FDIC insured and if the company wanted to charge you some bogus fees or charges you could only contest it with them and not the government like with bank accounts. If it's not the bank the truth and disclosure requirements may be lax and they will try every way possible by slipping hidden costs.  You should be able to get a savings account at least regardless of your credit history and you could keep your money there and withdraw some every week and put it on the prepaid card but I wouldn't trust those prepaid cards with your whole life savings.

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