Is Suze Orman’s ‘approved card’ for you?
Maybe you've heard. Celebrity financial advisor Suze Orman is selling a prepaid debit card. But is the new "approved card" for you?
Orman's "approved card" is a prepaid Master Card. She calls it better than cash" and "safer than cash." Like other prepaid cards, you can't go into debt because you can only spend the money that's loaded on the card.
Orman says her "approved card" provides more services at a lower cost than any other prepaid card on the market. It sells for $3 and there's a $3 monthly fee, which is waived for the first month.
There are other fees that can run up the bill, including:
• $2 for a paper statement
• $1 for pay by check
• $2 for over-the counter cash withdrawal
• $2 to talk to a live customer service agent -- after one free call per month
Consumer Reports had its financial services experts review the terms and conditions of the card and found that the fees are in line with the better cards in the marketplace.
"I'm telling you, the fees on this card will never go up from here," Orman said. "If anything, it is my goal to make is so that you don't have to pay the $3 per month. I'm telling you that right on television. Let's see if I can do that or not."
Orman says she's not doing this for the money.
"Suze Orman doesn't need to make any more money. I am funding this all by myself. If I wanted to make a profit, I would be like many of the other cards out there that charge you $35 to $50 a month just to have it,” she said.
Orman's "approved card" comes with a lot of free perks, including: unlimited access to your credit report and credit scores from transunion, credit monitoring and identity theft protection.
You also get unlimited free use of allpoint ATMs across the country each month, if you make a direct deposit or bank transfer to the card of $20 or more.
"The card is fine, but it's nothing revolutionary. It's a very typical preparid card and frankly, from the most powerful woman in personal finance, I would expect something really Earth-shattering," said Gerri Detwiler of credit.com.
Orman makes a big deal of the fact that information from people who use her card will be "shared with" TransUnion, one of the big three credit reporting agencies. That does not mean using Orman's card will help your credit score. It won't. No prepaid card will at this time.
Orman says in 18 to 24 months, TransUnion will decide if information from prepaid debit cards can be used to determine that score. But that's a long way down the road -- with no guarentee.
Orman's "approved card" is a prepaid Master Card. She calls it better than cash" and "safer than cash." Like other prepaid cards, you can't go into debt because you can only spend the money that's loaded on the card.
Orman says her "approved card" provides more services at a lower cost than any other prepaid card on the market. It sells for $3 and there's a $3 monthly fee, which is waived for the first month.
There are other fees that can run up the bill, including:
• $2 for a paper statement
• $1 for pay by check
• $2 for over-the counter cash withdrawal
• $2 to talk to a live customer service agent -- after one free call per month
Consumer Reports had its financial services experts review the terms and conditions of the card and found that the fees are in line with the better cards in the marketplace.
"I'm telling you, the fees on this card will never go up from here," Orman said. "If anything, it is my goal to make is so that you don't have to pay the $3 per month. I'm telling you that right on television. Let's see if I can do that or not."
Orman says she's not doing this for the money.
"Suze Orman doesn't need to make any more money. I am funding this all by myself. If I wanted to make a profit, I would be like many of the other cards out there that charge you $35 to $50 a month just to have it,” she said.
Orman's "approved card" comes with a lot of free perks, including: unlimited access to your credit report and credit scores from transunion, credit monitoring and identity theft protection.
You also get unlimited free use of allpoint ATMs across the country each month, if you make a direct deposit or bank transfer to the card of $20 or more.
"The card is fine, but it's nothing revolutionary. It's a very typical preparid card and frankly, from the most powerful woman in personal finance, I would expect something really Earth-shattering," said Gerri Detwiler of credit.com.
Orman makes a big deal of the fact that information from people who use her card will be "shared with" TransUnion, one of the big three credit reporting agencies. That does not mean using Orman's card will help your credit score. It won't. No prepaid card will at this time.
Orman says in 18 to 24 months, TransUnion will decide if information from prepaid debit cards can be used to determine that score. But that's a long way down the road -- with no guarentee.
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