*I've also posted this in the Consumer Proposals section*
Hi, All,
While in consumer proposal or bankruptcy, many of us still need to use a VISA or MasterCard. "Secured" credit cards are often mentioned on this forum. These are cards that one secures with a deposit to the card issuer. They are normal in every other way, are considered "credit", and appear on your credit report.
A second alternative is the "pre-paid" card. With this card, you actually pre-pay money into the card itself just like making a normal "payment", except that you can never go below zero - hence, it's not really "credit", but more like a debit account. It does not appear on your credit report, and no credit checks are done. However, a prepaid card is still a "real" VISA or MasterCard, and will work the same way when making purchases.
I myself use a Bank of Montreal (BMO) Prepaid MasterCard, and it works well in every way - travel bookings, online, everything. There are other prepaid cards out there too, but this is the one I've used.
Just Google "BMO Prepaid MasterCard" and you'll get the link. It is accepted by all merchants, doesn't look weird in any way, and is a real honest-to-goodness MasterCard.
You can apply for it on-line. It takes about two weeks to get. They withdraw the $10 fee once you've activated the card and loaded some money into it. You can check your balance online or on the phone. You can print out a monthly statement online as well. The card even gives you Air Miles. I have a Bank of Montreal chequing account, and I can make "payments" into this card via my online or telephone banking, just like any other card. Or, you can just go into a BMO branch and make a payment at the counter. There is no minimum you have to keep in the card, I don't think. Mine often only has $5 left in it, until I load it up again.
I am a merchant myself, and I can assure you there is nothing unusual about these cards from the merchant standpoint. You can use them anywhere you normally use a MasterCard.
The Financial Consumer Agency of Canada recently published a guide to Canadian Pre-Paid cards, which is available online as a PDF. The guide contains lots of info and useful comparisons of the cards available (the Bank of Montreal one appears to be far better than the rest). You can find this guide by Googling "FCAC Canada Pre-paid Mastercard Visa comparison".
Best wishes,
~Wendy