The latest “big news” to hit the personal finance blogosphere is the release of Suze Orman’s Approved prepaid debit card. Suze Orman is one of the most well-known personal finance gurus out there, dispensing no-nonsense advice to millions. She has already been connected with products related to credit scoring, such as her FICO kit, and to best-selling books.
Her latest product, though, is a prepaid debit card. There are several financial products that Suze Orman could have chosen to endorse, or develop, and she picked a prepaid debit card — something that hasn’t sat too well with the wide community of personal finance bloggers.
Some of the details of the Suze Orman prepaid debit card include:
But is the Approved Prepaid Debit Card Right for YOU?
The general consensus is that Suze Orman’s Approved prepaid debit card isn’t as bad as most other prepaid debit cards out there. And, for some people, there is a need for prepaid debit. But prepaid debit isn’t for everyone.
For the most part, prepaid debit should be used only by the “unbanked.” These are people who can’t get a bank account, for whatever reason. Indeed, there are many people who have a hard time getting a checking account. For those, the prepaid debit card adds convenience, and provides a way for them to receive direct deposits from work. This way, they aren’t subject to the huge check cashing fees that can come at grocery stores and payday check cashing outfits.
However, there is no reason for anyone who has a bank account to use a prepaid debit card. There are numerous free checking accounts available, and no reason for you to pay to access your own money. One of the issues many have with Suze’s marketing tactics is that she is implying that the “banked” should ditch their own accounts in favor of using the prepaid debit card she developed. If you already have free checking, using a prepaid debit card of any kind is a downgrade.
Finally, it is important to realize that the prepaid debit card will not help your credit score. If you are trying to rebuild your credit, and improve your finances that way, the Approved card is useless. No matter what information is being sent to TransUnion, it won’t be included on your report. If you are trying to rebuild your credit history, and can’t get a regular credit card, you are better off getting a secured credit card. You’ll still be paying fees, but your payment information will actually count toward improving your credit score.
Author: This article was contributed by Make Spend Save Invest, a site that provides information on managing your financial resources.Source: Is Suze Orman’s Prepaid Debit Card Right For You?
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