Getting a Prepaid Card After Bankruptcy

by Samantha Bennet on 2013/02/23

When I graduated high school, I received several unsolicited credit cards in the mail. I was so excited. I had a job as a secretary but proceeded to live the same comfortable life I had while growing up. The problem was my parents brought home six times what I made. But, I bought and bought, each time handing over my new credit cards as if they constituted free money.

By age 21, I was in Bankruptcy Court because I could not come close to paying my bills, especially credit card ones. A clean slate was afforded me by Chapter 7 Bankruptcy Court, but I changed none of my spending habits. So, at age 24, I filed for bankruptcy again! I was so ashamed I never told my parents and suffered alone.

I expected to spend the next 7-10 years trying to build up my credit again. It was very cumbersome and dangerous to carry around large amounts of cash for everything. But, then I discovered pre-paid credit cards available to people after bankruptcy filings.

Not years, but weeks to pre-paid credit cards following bankruptcy

Pre-paid credit cards rescued me from financial and emotional trauma. They are issued by credit card companies directly as well as through banks. They are “pay-as-you-go” financial transactions, credit lines secured by deposits. The basic structure is depositing money into a pre-paid credit card account. A card is issued. And purchases can be made and bills paid up to the deposit amount. Pre-paid credit cards have “normalized” my life.

Requirements for pre-paid credit cards following bankruptcy

No credit check is required to obtain a pre-paid credit card. I simply deposit money in a pre-paid credit card account. No one forces me to recite the embarrassing circumstances of my two bankruptcies because everyone over 21 is approved for pre-paid credit cards. The cards are accepted at every establishment that allows any other debit/credit purchase.

Now something you must remember is that a prepaid debit card will not help to rebuild your credit because they don’t really prove that you are making payments on time. If you want to rebuild your credit, a secured credit card would be the best option.

Prepaid Visa® Baby Phat RushCard
Prepaid Visa® Baby Phat RushCard

  • Get your tax refund faster! Plus No card fee when you Direct Deposit by 4/15/13. *See card site for details
  • Convenient monthly or pay as you go plans available
  • Get Your Paycheck up to 2 Days Early with Direct Deposit
  • Easy Bill Pay – pay bills, rent, or write personal checks
  • Card to card transfers

Apply Now!

A huge array of pre-paid credit cards to choose from

Within a week of my second bankruptcy, I had a budget for living daily life. All the major credit card companies offer pay-as-you-go credit cards: Visa, Master Card, American Express, Discover, etc. And there is 100% approval because the customer is pre-funding the credit card. No credit checks are required and there is no prescribed waiting period following bankruptcy.

READYdebit Platinum Visa Prepaid Card
READYdebit Platinum Visa Prepaid Card

  • Get Your Premium Benefits:
  • Exclusive Rewards Program
  • Free Credit ScoreTracker*
  • Easy Mobile Banking and Text Alerts
  • Easy Online Bill Payment & Check Writing
  • Free Direct Deposit – paycheck, benefits, tax refunds
  • No Credit Check, No Overdraft Fees or Balance Minimums
  • Reloadable up to $10,000 Max Balance and Deposit is fully FDIC insured

Apply Now!

Many options for pre-paid credit cards following bankruptcy

Believe it or not! There are many pre-paid credit cards available after bankruptcy containing literally scores of option combinations. So researching to find the card with the most options an individual desires is essential. Most cards have  no application fees but they do have a minimal monthly fee.

There are varying credit limits ranging from about $300 to over $3000. They also allow on-line bill paying, as well as direct deposit. One might be able to pick the day of the month to make monthly payments on your credit card.
More offerings include free fraud and purchase protection plans.

Even roadside assistance is offered as a customer inducement and online shopping. As repayments stabilize, higher credit limits are usually made available. At least one card even offers prescription discounts.

Free interest-earning savings accounts are another lure along with a percentage return on gas and other purchases. More than one credit card issuer allows use of over 20,000 ATM machines; most others have ATM service. One might receive some over-draft leeway; but you should not get used to that as you want to live within your budget.

After filing for bankruptcy, did you ever think credit card companies and banks would compete for your business in offering pre-paid credit cards?

Next read–Creative Ways to Save Money While Traveling Abroad

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