I respect Suze Orman greatly. Her guidance has significantly improved my financial management and helped me plan better for retirement. I’m fond of her principle that states, “People first, then money, then things.” However, I was taken aback upon hearing about her new offering, “The Approved Card from Suze Orman.” It was even more surprising to see her Twitter post, where she labeled Phil from PTMoney, the brilliant organizer of the unique “Financial Blogger Conference,” as an “idiot.”
While it’s tempting to think a PR representative made this error instead of Suze, the odds don’t favor this theory. I’ve never been a supporter of prepaid cards, and as Glen from FreeFromBroke rightly notes, we can create our prepaid debit cards with zero additional fees. Notably, Andrea from SoOverDebt also highlights that Suze herself wasn’t a supporter of these cards in the past.
In her 2005 book, “The Money Book for the Young, Fabulous, & Broke,” on page 96, she states, “I don’t think prepaid cards are a viable option either, as they won’t help you establish a credit history. If you can’t get a standard credit card, secure one and use it as a step towards getting a credit card.”
So, why this abrupt shift in perspective?
And what makes this “Approved Card” stand out? Nothing new or groundbreaking to be frank, perhaps some marginal differences in fees compared to other prepaid cards.
In her card description, Suze mentions it as an “easier, smarter way to be debt-free.” How can incurring extra (and avoidable) fees be considered smart?
Let’s take a quick look at the “Credit Project.” Under this scheme, your Approved Card purchases, payments, and other transactions will be analyzed by TransUnion, a consumer credit bureau, hoping it will contribute to your credit history one day. But how are debit transactions relevant to your credit history?
As can be seen, I’m not thrilled with this product due to the intense marketing it will receive and the possibility of misleading consumers. Hence, I urge everyone to carefully evaluate its drawbacks before adopting this card. Suze, I respectfully call for a defence of your card, and a respectful dialogue with the Personal Finance Blogging community.
