New! The Approved Card by Suze Orman
Let me introduce you to the new credit card called the Approved Card by Suze Orman. The Approved Card is a prepaid debit card, which is used somewhat like a gift card but also similar to a credit card. We all are accustomed to prepay credit cards that you can use just like any other Visa or MasterCard. How the Approved Card is similar to a prepay card is that you cannot be not turned down because you are not borrowing money.
Suze Orman is an American financial advisor, author, motivational speaker, and television host. Her program The Suze Orman Show is one of the highest rated shows on CNBC. She has written nine best selling books on how to achieve financial freedom. Orman was named to the Time Magazine list of 100 most influential people and Forbes Magazine’s 100 most powerful women in the world for 2010. So when she came out with a debit card the expectation was that everyone would be excited.
Suze Orman’s Approved Card is marketed to people who have shied away from traditional checking accounts and credit cards for one reason or another. People in search of financial advise or those that are in a financial bind have been her audience for years. Orman preaches about avoiding fees. Do everything possible NOT to be charge any additional fees and to beware of an institution that has several ways to trap you into being charged a fee. So the assumption would be that her debit card would have less fees than most other cards. If the Approved Card did charge several fees then the expectation would be that the fee is minimal. She wouldn’t coach us for so many years to stay away from banks fees and then create a card that was like all the rest would she? Well, the Approved Card has plenty of fees.
The Approved Card has a basic fee of only $3 per month, which isn’t bad right? Right! The problem is that there are so many other fees. There are fees for calling customer service more than once a month. There are fees if you don’t make a direct deposit during the month.
There’s a $1 bill payment fee for payees who take paper checks. That second call to customer service in one month is$2. Same-day payments are $9.95. A copy of a check is $20. Payment inquiries will cost you $30. This is like going to the dollar store, not paying attention to how many items you have picked up because everything is a dollar. Before you know it you have a cart filled with items and the bill is around $50. It is not looking like the Approved Card will only cost you $3 a month.
There are more set backs to going out and getting an Approved Card. Debit cards are not accepted everywhere you can use a credit card. You may not be able to book a hotel or rent a car, according to the Approved Card website. The comfort of paying for gas at the pump is not an option with this card. You can pay inside but who wants to do that regularly or in a hurry? Then you have to be computer savvy in order to get your monthly statement because if you want a paper statement it will cost $2.
The Approved Card is a great card for people who can’t get a checking account or aren’t ready for one yet. Everyone needs a debit card. Check out various nearby banks and see what fees they charge. Find a credit union and compare their bank fees to the Approved Card. Just always do your research. Be informed!