Is there any downside to using temporary credit card numbers with subscription services?
I did just what you suggest. The card company honored the charge, they told me the temporary number was solely for the purpose of assigning a number to one vendor/business. So even though I set a low limit, the number was still active and the card company paid the request. Small price to pay, but it didn't go as I wished.    For this purpose, I've used Visa/Mastercard gift cards. They are often on sale for face value and no additional fees. If you've agreed to pay the money, then you owe them whether they have a valid credit card number of yours or not. If they want to report your debt to a collections agency and/or credit bureau, they can. Which would suck for you. It may not be that likely over $9.99 or whatever, but my point is that it's still a small risk even with a temporary card number. You're knowingly providing a payment method which has insufficient funds to meet the terms of the contract, because you are too lazy to comply with the contract. That's unethical and fraudulent behavior. Will you get in trouble? I don't know. I'd suggest getting acquainted with an electronic calendar that can remind you to do things.
My view is from the Netherlands, a EU country. Con: Credit cards are more risky. If someone finds your card, they can use it for online purchases without knowing any PIN, just by entering the card number, expiration date, and security code on the back. Worse, sometimes that information is stored in databases, and those get stolen by hackers! Also, you can have agreed to do periodic payments on some website and forgot about them, stopped using the service, and be surprised about the charge later. Debit cards usually need some kind of device that requires your PIN to do online payments (the ones I have in the Netherlands do, anyway), and automated periodic payments are authorized at your bank where you can get an overview of the currently active ones. Con: Banks get a percentage of each credit card payment. Unlike debit cards where companies usually pay a tiny fixed fee for each transaction (of, say, half a cent), credit card payments usually cost them a percentage and it comes to much more, a significant part of the profit margin. I feel this is just wrong. Con: automatic monthly payment can come at an unexpected moment With debit cards, the amount is withdrawn immediately and if the money isn't there, you get an error message allowing you to pay some other way (credit card after all, other bank account, cash, etc). When a recent monthly payment from my credit card was due to be charged from my bank account recently, someone else had been paid from it earlier that day and the money wasn't there. So I had to pay interest, on something I bought weeks ago... Pro: Credit cards apparently have some kind of insurance. I've never used this and don't know how it works, but apparently you can get your money back easily after fraudulent charges. Pro: Credit cards can be more easily used internationally for online purchases I don't know how it is with Visa or MC-issued debit cards, but many US sites accept only cards that have number/expiration date/security code and thus my normal bank account debit card isn't useable. Conclusion: definitely have one, but only use it when absolutely necessary. "I think what you are looking for is a secured credit card. They are mostly used by people who have ruined their credit and want to rebuild it, but it might also serve your purpose.  Essentially you deposit some money in an account and the credit card can be used up to the amount left in the account. Each month when you pay the bill, it resets the balance that you can charge. Also, many credit card providers also offer ""disposable"" or ""one use"" credit card numbers for the express purpose of using it online. It still gets charged against your regular account, but you get a separate number that can only be used for up to X dollars of transactions." I am going to break rank slightly with the consensus so far.  Here's the deal, it probably DOES help your credit slightly to pay it multiple times per month if it isn't a hassle, but the bump is likely to be minimal and very temporary.  Here's why: A key component of your score is your credit usage ratio. That is the ratio of how much of your credit limits you are using. You want to keep this number down as low as possible. Now here is where it gets tricky. Although you have a grace period to pay off your card with no interest, the credit card companies don't generally report the balance as of the due date. They either report the high balance or an average balance over the month. That is, it is based on how much you use, not how much balance you carry over each month. It isn't very intuitive, but that's just how it is. So technically, keeping that balance lower over the course of the month WILL probably help you, but the credit usage ratio is generally a rolling average over the last x months, so the effect will wear off quickly. So it is probably not worth doing unless you know you are going to apply for a loan in the next 6 months and need a temporary, small bump. Another consideration is that paying early provides no real financial benefit in terms of finance charges, but you are giving up liquidity which does have some value.    1) You probably could get at least a little interest for keeping the money in your account a few more weeks. 2) If you have a major financial emergency, e.g. broken down car, you might appreciate the fact that you kept your options open to carry that balance over a month. "Depending on what you mean by ""High-quality health insurance,"" it is part of the problem.  If you don't care about price (because you are using your insurance pays for everything), providers will charge as much as your insurance will pay.  Health insurance in this country turned into a poorly built health service subscription business because the government made it cheaper for your employer to provide you wages in the form of health insurance than in money.  There are new health service business models popping up that are built as a health service subscription.  Providers charge a flat monthly rate and you get to use as much as you want.  The doctors and other service providers don't have to deal with insurance, and get to keep everything.  Unfortunately, they are illegal in some states.  Get the government out of the health services sector.  End the subsidy for health insurance paid by employers, or provide the same subsidy for health services purchased by individuals.  Allow any group to negotiate group coverage.  Why is your health insurance tied to your job?  Allow communities, extended families, or any organization to purchase group coverage.  Stop requiring purchasing insurance services you don't want and will never use, like a gay men being required to purchase maternity insurance." Some accounts, such as my electric, and payments to the tax collector charge a significant enough fee that is counter productive to use a rewards card.  One example of this is Alligent Air.  They give you a $6 discount if you pay with a debit card which was about 5% of the ticket price. Anytime you borrow money, even as well intentioned and thought out as you plan to do so, you are increasing risk.  By managing it carefully you can certainly mitigate it.  The question becomes, does that time spent in management worth the $600/year? I did the costco amex deal for about 12 years earning about $300-$400 per year and only once getting hit with a late/finance charge.  Despite the success, I opted to end this for a few different reasons.  First off people using credit tend to spend more.  Secondly, I felt it was not worth my time in management.  Thirdly, I did not want the risk. Despite the boasts of many, the reality is that few people actually pay off their card each month.  By your post, it seems to me that you will be one of the rare few.  However, if you are expending 5K per month, your income must be above the US national average.  Is $600 really worth it? Perhaps budgeting for Christmas would be a better option. Not sure if serious or not, but i'll bite. First of all the service you are purchasing is the access to credit card, which runs on a network supplied by financial institutions. Secondly credit card is an optional fee, taxes are mandatory (unless you are a crook). 1) Every credit card company charges vendors a fee. That's sufficient to make an acceptable profit per charge even if some of that money goes into marketing expenses -- and the cash-back offer is a marketing expense. 2) Many if not most consumers pay interest; probably everyone does so occasionally when we get distracted and miss a payment. 3) The offer encourages you to put more payments on the card -- and in particular on their card -- than you might otherwise. See #1; that increases net income. Apparently it is up to the credit card company on how they want to report your available balance. Another disadvantage to the no-limit   credit card may not be apparent to   most people, but it is something noted   by organizations like The Motley Fool,   which is expert in many issues of   finance and investment. Part of your   credit  score, about 30%, considers   the amount of money you have borrowed,   and the limit on your present credit   cards. A no-limit credit card company   may report your limit as $0 if you   have not used the card, or they may   report  a maximum limit available to   you. They may not, nor are they   obligated, to report times when you   put tons of expenses on a credit  card   and then paid them off. While some companies will report your   timely payments and paid off amounts,   others simply report an extremely low   limit. For instance if you spent $100   US Dollars (USD), your limit might be   considered $100 USD, or it may merely   be reported as zero. You’ll need to   check with a credit card company on   how they report payments and limits on   a no-limit credit card before you   obtain one. Some people who are   scrupulous are paying off their cards   at the end of each month suffer major   losses to their credit score, without   even realizing it, if their spending   ability is rated at zero, or their   payments don’t count toward showing   credit worthiness. Source