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Has anyone used a prepaid Visa Card to pay creditors?


gcmoore
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This sounds like a good way to pay creditors for past due debts? It's not connected to personal checking or savings accounts, and no credit check is required to obtain the card. Has anyone here used the card? If so, does it come with a monthly statement to verify proof of monthly payments? The card has no maximum limit for purchases, it just depends on how much money you put on the card. Also, when registering for the card, how would your name and address be affiliated with the prepaid card? Most places ask to verify your zip code, name ect to approve payments over the phone or online.

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Hi GC

I have used my prepaid Visa to pay the collection agency that was handling my defaulted student loans while I was bringing them current. I in NO way wanted to give them access to my bank account. I also use the card for on-line purchases and my car insurance payment (also on-line). That way, my bank account isn't exposed to internet thieves. I use www.netspend.com, and find it a good value for the money. :)++

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you could make it easier and have a written record to boot.. I set up a totally different bank account in another bank in another nearby city.. this account is ONLY for paying lenders/collectors.. and nothing else.. if they ever do get funny there is never much in it and I still have a paper trail of whats been paid..

I deposit enough to cover those payments about about 20 bucks more to keep it open.. so far its worked like a charm

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you could make it easier and have a written record to boot.. I set up a totally different bank account in another bank in another nearby city.. this account is ONLY for paying lenders/collectors.. and nothing else.. if they ever do get funny there is never much in it and I still have a paper trail of whats been paid..

I deposit enough to cover those payments about about 20 bucks more to keep it open.. so far its worked like a charm

With my credit, no bank is going to open up a new account for me now. lol

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Hi GC

I have used my prepaid Visa to pay the collection agency that was handling my defaulted student loans while I was bringing them current. I in NO way wanted to give them access to my bank account. I also use the card for on-line purchases and my car insurance payment (also on-line). That way, my bank account isn't exposed to internet thieves. I use www.netspend.com, and find it a good value for the money. :)++

Thanks trailrider. Do you also receive a monthly printout similar to a bank statement to prove what charges were made? I see that netspend asks for social security information. Is that secure?

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GC,

You may log onto their website anytime and print out your statement and check out what has cleared. I have never had a problem with their security. Once you give them the information, you can choose a log in name and password, and your SS number does not enter into the mix. The fees are reasonable: $9.95 to set up the account, and you can either choose the monthly plan where you have unlimited card use for $7.95 per month, or you can choose the pay as you go plan with no monthly fee and $1 per card debit. Since I use the card once or twice a month, I have the pay as you go plan. It works for me. :D

Also, if you really want a checking account, you might try Woodforest Bank, www.woodforest.com. They offer a second chance checking account with no credit check or chex check. I've had my account for a couple of months now and I am very satisfied with it. Good Luck!

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With my credit, no bank is going to open up a new account for me now. lol

Credit has nothing to do with deposit accounts. Yes, I've heard this argument before, but I've also pressed the issue with many bank managers and given them what for. Having been a manager in a bank law office for several years, I know the system rather well.

#1 - A SSN is not required to open a deposit account if there is no interest being paid on the deposited balance. [those no interest, free-checking accounts fall in this category] Since no interest is being reported, they have no need for your SSN. 26 CFR 301.6109-1c says that they may ask for a SSN to open an account, but it does not require them to obtain it.

#2 - Even if you are getting interest, they still don't need an SSN unless your deposited amount is over $20,000. The PATRIOT Act requires them to run anti-money laundering checks and report interest paid on large deposit accounts for crimal review. As far as taxes go, IRS publication "Instructions for 1099-INT & OID" does not require that a social security number be provided. IRS code section 6041 specifies that only name, address, and amount are required to file tax forms... NO SSN NEEDED.

#3 - It is a FELONY under 42 USC 408 for any person to "disclose, use, or compel the disclosure of the social security number of any person in violation of the laws of the United States;" This is punishable by up to 5 years in prison.

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Credit has nothing to do with deposit accounts. Yes, I've heard this argument before, but I've also pressed the issue with many bank managers and given them what for. Having been a manager in a bank law office for several years, I know the system rather well.

#1 - A SSN is not required to open a deposit account if there is no interest being paid on the deposited balance. [those no interest, free-checking accounts fall in this category] Since no interest is being reported, they have no need for your SSN. 26 CFR 301.6109-1c says that they may ask for a SSN to open an account, but it does not require them to obtain it.

#2 - Even if you are getting interest, they still don't need an SSN unless your deposited amount is over $20,000. The PATRIOT Act requires them to run anti-money laundering checks and report interest paid on large deposit accounts for crimal review. As far as taxes go, IRS publication "Instructions for 1099-INT & OID" does not require that a social security number be provided. IRS code section 6041 specifies that only name, address, and amount are required to file tax forms... NO SSN NEEDED.

#3 - It is a FELONY under 42 USC 408 for any person to "disclose, use, or compel the disclosure of the social security number of any person in violation of the laws of the United States;" This is punishable by up to 5 years in prison.

You might want to tell the banks who denied opening "no interest, free-checking accounts" for me when I attempted to do so. lol I've never heard of a bank opening an account without requesting your ssn. Sure they may not "legally" need it(thought I'm not sure if that's correct), but that doesn't mean they are obligated to open an account if you refuse to provide it. So it pretty much means if you want an account you have to provide the social security number. When you say "deposit accounts", how do those differ from the basic checking accounts I inquired about? Thanks.

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GC,

You may log onto their website anytime and print out your statement and check out what has cleared. I have never had a problem with their security. Once you give them the information, you can choose a log in name and password, and your SS number does not enter into the mix. The fees are reasonable: $9.95 to set up the account, and you can either choose the monthly plan where you have unlimited card use for $7.95 per month, or you can choose the pay as you go plan with no monthly fee and $1 per card debit. Since I use the card once or twice a month, I have the pay as you go plan. It works for me. :D

Also, if you really want a checking account, you might try Woodforest Bank, www.woodforest.com. They offer a second chance checking account with no credit check or chex check. I've had my account for a couple of months now and I am very satisfied with it. Good Luck!

Thanks Trailrider. I've never heard of this before. Does it matter what state you're from? I'm guessing it doesn't. I'll check them out now. :)

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You might want to tell the banks who denied opening "no interest, free-checking accounts" for me when I attempted to do so. lol I've never heard of a bank opening an account with requesting your ssn. When you say "deposit accounts", how do those differ from the basic checking accounts I inquired about? Thanks.

I have three accounts,, everyone one of then required my SS #.. I have never heard of a bank NOT asking for it.. and two of them did an equifax check it showed up on my CR

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I have three accounts,, everyone one of then required my SS #.. I have never heard of a bank NOT asking for it.. and two of them did an equifax check it showed up on my CR

That's what I meant to say. I've never heard of a bank NOT requiring the social security number of their customers when opening an account.

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