It's the creation of personal finance icon, Suze Orman, called The Approved card. It's a prepaid card and, she says, it's the start of a financial revolution - enabling Americans to build credit in a way they've never been able to before.
Right now, using cash or a debit card does nothing to help you build credit or establish a credit score. Orman is hoping to change that.
"This card will be the first prepaid card in history that will be sharing information with TransUnion, one of the 3 credit bureaus," Orman said. "I hope the other two join us in this, where they will be evaluating the debit card transactions to see... can it predict future credit scores?"
Keep in mind - the data from Orman's prepaid debit card will not currently go on your credit report it's just under evaluation by TransUnion. The credit bureau will look at the data over the next 18 to 24 months, then decide whether to change its credit scoring system.
Also keep in mind that prepaid cards often have hefty and hidden fees. But, financial experts Action News talked to say Orman's card is different.
"I will commend Suze Orman," said Patricia Hasson of Clarifi Personal Finance. "Her fees are very clear and they're laid out. Try and do it with some other prepaid cards and you will struggle."
Orman says her card will give you more money-management tools than any other prepaid card.
"You get unlimited credit scores, reports, and 24-7 credit monitoring from Transunion. You get a free identity theft kit, so to speak - protection," said Orman.
You can get a text or email telling you how much you've spent and how much you have left over.
"If you use this card exactly like I tell you to use it, it will not cost you more than $3 per month," said Orman.
That three dollars will get you up to four cards and there are no activation, cancellation, or inactivity fees.
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For more information:
www.theapprovedcard.com
http://greatermd.bbb.org/
http://www.credit.com/
