By now, most consumers are very much aware of what celebrities will do to keep their names front and center while earning money off of everyday folks. Now, though, Suze Orman is in on the gig – and she should know better.
Financial Guru
First, for years, many have equated financial responsibility with the name Suze Orman. Countless Americans have relied on her to guide them out of credit fail hell – and for the most part, she’s done quite well. Now, though, it appears she’s jeopardizing her powerful empire by putting her name on a prepaid debit card that really offers very little to users.
Orman’s new pre-paid MasterCard issued by Bancorp Bank. It’s unremarkable in many ways, including the expected fees that usually accompany these prepaid debit card offers. The problem with Orman’s Accepted card is there appear to be a few misleading statements.
Prepaid Cards and the Credit Bureaus
Only in the rarest circumstances do prepaid debit cards affect one’s credit score. They’re prepaid, after all, so there’s no bank or credit card company that’s relying on card holders to repay their money, thereby eliminating the need for reporting one’s payment history. These debit card users are using their own money that’s been preloaded onto their cards either by direct deposit or visiting area merchants.
I Created It
Orman claims her product can “potentially help you improve your credit score”. That’s just not possible. It’s true your history is sent to one of the credit bureaus, but frankly, there’s really nothing that credit bureau can do with that information. There’s simply nothing to report.
She goes on to say on her website,
I didn’t just approve this card. I created it.
She told one reporter in the Dallas-Ft Worth area that the credit card is free and that it can potentially help you improve your credit score.
The card’s not free, however. In fact, there’s a $3 “monthly maintenance fee” that’s charged to card holders. Again, these fees really aren’t that big of a deal for consumers who use these financial products, it’s the fact Orman is relying on her reputation to ensure folks don’t check to be sure what’s she’s claiming is true.
Further Problems
Once you delve into the fine print, you really begin to see the old adage of “the devil’s in the details”. For instance, using the Approved card means you’re charged $2 for every ATM transaction and worse, you’re very limited on how you can reload funds. To add money to your Approved card you must use direct deposit or transfer money from your bank account. Need operator assistance? Fine – you get one free call a month. After that, it costs you $2 each time you call.
Also, and unlike its competitors, you can only use the Approved card in certain places. Gas pumps are off limits and it can’t be used to make hotel reservations. Finally, there are daily limits on how much you can spend.
Clearly, Orman is bound to catch some heat for such an unwise financial strategy. Let’s just hope her prepaid card dies a quick death like those celebrities’ cards before her.
