Suze Orman is a highly popular financial expert and TV personality. Lately Orman has been making the rounds on TV and in social media outlets, promoting a new approved “pre-paid” MasterCard that is being issued by Bancorp Bank. Orman’s endorsement of this card is a big deal because the public in general trusts Orman’s financial advice. Normally her advice is spot on, but this time it seems she may not have done her homework on the product she is endorsing.
Orman’s website says, “I didn’t just approve this card. I created it.” She told Fox 4 news in Dallas that the credit card is free and that it can potentially help you improve your credit score. However, there is currently a $3 “monthly maintenance fee” for the card and as of now TransUnion and the other top consumer credit reporting agencies do not include pre-paid credit cards on credit reports. However, TransUnion will be sent your information once you are a card holder, but giving your info to a company that is not improving your credit score makes no sense.
There are other problems with the card once you read the fine print. If you take money out of an ATM using the card, it will cost you $2 per transaction. Also, to add money to your “Approved Card” you must use direct deposit or transfer money from your bank account. If you need help from the customer service department, you are allowed one free call a month. After that, they charge you $2 per call.
The card is also limited as to where it can be used. For instance, you can not use it at a gas pump or to make reservations at a hotel, no matter how much money you have already put on the card. There are limits on how much you can spend in a 24 hour period, despite how much money is on the card.
Orman told her Facebook users, “I introduce my alternative for those of you who are not happy with the fees or services at your current bank. There are also many of you who simply want a place you can bring your money home to. I ask you all to check out theapprovedcard.com and join me in my people first movement. Come on everyone let's do this together.”
Although Suze Orman is certainly a reputable financial expert who has offered sound advice in the past, this product does not seem like something she would tell her followers to get involved with. There are too many fees and fine print items that overall make “The Approved Card From Suze Orman” seem like a bad idea for the vast majority of consumers.
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