Skip to content

Can I use a prepaid card for monthly payments

With a prepaid credit card, you can deposit or load funds in many ways.
Based on the service, you could be in a position to load your card via bank transfer, third-party payments, ATM deposit, or even in cash at an in-store location.
So long as you load funds on your card from a bank-account or similar service, your credit score and credit card won’t come into play.
Prepaid debit cards are payment cards that you can use to spend a pre-loaded balance.
For many people, a prepaid debit card isn’t the best choice when it comes to payment options.
However, you can find companies which may be unwilling to take your prepaid card as a payment method.

On top of that, credit cards often include yearly management fees, which may be costly.
So it’s far better keep an eye on how much you’re spending which means you don’t wind up unable to pay it.

  • We’ve got you covered ¾ With Visa’s Zero Liability Policy, you won’t be held accountable for unauthorized transactions made out of your Visa Prepaid card.
  • The best option would be to direct deposit all or a few of your paycheck, government checks as well as your tax refund right to your Visa Prepaid credit card.
  • With prepaid cards,
  • In america and the UK, you can pay

A prepaid debit card can fill the void in your wallet if you don’t have a normal debit card linked to a checking account or a credit card.
Prepaid cards may also come in handy if you’re a parent who would like to teach your child about financial responsibility.
Though prepaid cards offer an alternative solution to spend and deposit cash, monitor fees for the best card for your financial needs.
You can develop a budget, manage your spending, use direct deposit, have a place to carry your funds and withdraw money from an ATM or bank teller, among other activities.
Understand that while prepaid cards are an alternative to credit and debit, they don’t assist you to build credit.
In order to establish a credit history, it is advisable to regularly use a charge card responsibly, paying your bills on time and in full every month.

Guide To Prepaid Debit Cards: Pros & Cons, Hidden Fees & More

Prepaid cards are a good option for parents who want to give their kids spending money without handing them cash that could potentially get lost.
You can request a new prepaid credit card if it goes missing, and several card issuers let you lock your card to prevent unauthorized use.

But these protections may not measure to those of traditional credit or debit cards.
THE BUYER Financial Protection Bureau (CFPB) confirms that prepaid cards generally won’t help build your credit history.

The Drawbacks Of Prepaid Debit Cards

Check for pre-approval offers without risk to your credit score.
In this way, the money you spend is in fact loaned to you by your bank or the payment institution that issued the card for you.
EDITORIAL DISCLOSURE All reviews are prepared by staff.

You will be the first to know about our special offers, releases and news.
Simply sign in into your account and put in a beneficiary, then simply “make a transfer” in your preferred currency to that beneficiary.
Cynthia Paez Bowman is really a finance, real estate and international business journalist.
Besides, her work has been featured in Business Jet Traveler, MSN,, and

So, you don’t need to worry about interest rates, credit limits, payment dates, or minimum payments.
Unlike a gift card, prepaid debit cards provide you with the ability to reload the account with money as soon as you spend the funds on the card.
If you continue steadily to add money to the card when it runs low, you should use the payment method over and over until it expires.
Managing your prepaid credit card is more like managing a checking or savings account than managing a charge card.
You don’t need to worry about monthly minimum payments, finance charges, payment dates, or late payments.

Where Can I Work With A Prepaid Visa Debit Card?

You can also be prepared to incur an ATM fee, reload fee and foreign transaction fee with many prepaid cards.
Prepaid cards and debit cards are both widely accepted at merchants worldwide, but one is preloaded and the other is not.
When you use a prepaid credit card, you’re only using the money that you’ve loaded about it.
You aren’t borrowing hardly any money, and the card doesn’t draw from any financial accounts you may have.
By comparison, credit cards gives you a borrowing limit against which it is possible to borrow for purchases.
You have the option of repaying your purchases with monthly installments or all at once.

Note that they can also be called stored-value cards, pay-as-you-go cards or, more formally, general-purpose reloadable prepaid cards.
For a lot of, a prepaid debit card can be an alternative to a traditional checking account.
It looks like credit cards or debit card externally, but works just like a gift card.
You can buy prepaid debit cards online, at many shops, and at some banks.
Prepaid cards are a relatively simple way for you to pay for purchases without opening credit cards or bank account.
They work much like a debit card for the reason that you may use a prepaid card to cover bills, set up direct deposit and use mobile check deposit.