Quote:
Originally Posted by
Kim 
Recently financial guru Suze Orman launched her own branded Prepaid MasterCard®. It's been getting some media attention because it goes against Suze's own advice to look for a card with no fees (her card has a monthly $3 fee).
Is this hypocritical? What do you think?
More on the Suze Orman Prepaid MasterCard®
Quote:
Originally Posted by
mamax3 It's not actually a credit card. It's a prepaid card so you have to add your own money to it. I've never understood the point of those. Yes, I think she's a hypocrite. She's just trying to make more money for herself by peddling a useless product.
Quote:
Originally Posted by
queenofthelaundry I guess I don't necessarily think it's hypocritical. I watch her show, and she repeatedly says that you shouldn't have a "credit card" unless: #1 pay the balance in full each month and #2 it is a low interest card with no fees.
I think that the prepaid card is marketed toward people who can't seem to do #1. I guess I figure maybe she's marketing it as a learning tool? Or a way to help people from racking up interest? I would guess that most people who rack up credit card debt pay more than 3$ in interest. I don't know. I wouldn't use one but I could see how it might be helpful to people who have a hard time controlling their spending.
I just had another thought. Maybe it's for people who can't get a bank account and therefore can't have a debit card? I'm not exactly sure why, but I've heard some people with really bad credit or who have bounced a lot of checks or whatever can't get banks to give them an account. I'm not sure that's true but there must be people without checking accounts because there are all those check cashing services at Walmart and other places like that.
I watched an interview and this seemed to make alot of sense. She really only wants people to use cash. No credit, or debit. However, for those of us who only want to use cash, we are not building any credit, Therefore, she started this card, and it is linked to one of the credit bueros and reports on how wisely you use this card.
And yes its prepaid, so you can only use what is on the card. You can connect it to a smart phone that you get notifications when you use the card, and how much is left on it, to be used more responsibly.
Also, she said she understands why people would think she is a hypocrite, with the $3 fee. However, she said that she will never increase the fee. If there comes a point in time where its raise the fee or get rid of the card, she will get rid of the card.
